Crude Edge Back Down After Big US Crude Stock Build

Crude markets edge lower after a bigger than expected build in crude stocks rising the most since February. Gasoline and diesel cracks are relatively unchanged with four week average gasoline demand still low despite a small gain on the week while inventory draws keep diesel stocks fairly low.

• Crude showed a large build in line with the API data but counter to the prior expectation of a small draw. The build was driven by a large decline in crude exports back to 3.1mbbls, drop in refinery runs and increase in production. US production rose to a record high of 13.2mbpd.
• Cushing stocks fell again as expected to the lowest since July 2022.
• Gasoline and distillates both drew with an increase in export volumes. Gasoline also saw a drop in imports to offset an increase in production while demand regained some ground after the fall last week. Distillate demand fell on the week with the four week average back below the five year average despite a small gain on the week.
  • Brent DEC 23 up 1.1% at 86.77$/bbl
  • WTI NOV 23 up 0.9% at 84.24$/bbl
  • WTI-Brent down -0.09$/bbl at -3.88$/bbl
  • WTI NOV 23-DEC 23 down -0.07$/bbl at 1.35$/bbl
  • WTI DEC 23-DEC 24 up 0.4$/bbl at 7.18$/bbl
  • US gasoline crack down -1.2$/bbl at 7.74$/bbl
  • US ULSD crack up 0.1$/bbl at 43.01$/bbl