Crude Eases Back on Unexpected Build as Gasoline Draw Supports Crack Spread

Crude eases back from earlier gains after the EIA inventory data shows a build similar to the API data yesterday but compared to expectation of a small draw. Gasoline cracks remain stronger with another draw in stocks but a fall in demand is weighing on diesel spreads.

• The crude build was despite a higher than expected increase in refinery runs as higher imports have offset an increase in exports and drop in production. The large crude build was partly offset by a 2.4m draw from the SPR.
• Cushing stocks showed a large increase to bring stocks up to highest since late March.
• Gasoline stocks have fallen again keeping levels below the five year range with higher exports. Implied demand showed a weekly decline but the four week average as edged slightly higher.
• Distillates inventories were relatively unchanged from last week. Production increased with the higher refinery utilisation while implied demand also showed a decline this week.
  • Brent JUL 23 up 0.4% at 75.22$/bbl
  • WTI JUN 23 up 0.5% at 71.19$/bbl
  • WTI-Brent up 0.07$/bbl at -3.99$/bbl
  • WTI JUN 23-JUL 23 down -0.05$/bbl at -0.03$/bbl
  • WTI JUN 23-DEC 23 down -0.2$/bbl at 1.44$/bbl
  • WTI DEC 23-DEC 24 down -0.1$/bbl at 2.86$/bbl
  • US gasoline crack up 0.9$/bbl at 34.15$/bbl
  • US ULSD crack up 0$/bbl at 28.4$/bbl