Crude Edges Higher After Crude Draw Driven by Cold Weather Disruption

Crude remains showed an initial surge higher in reaction to a larger than expected draw in US weekly crude inventories. A slight recovery in distillates demand leading to a stock draw have supported the US diesel crack spread while the gasoline crack is almost unchanged despite a large build.

• Crude inventories fell more than expected driven by large drop in production and refinery utilisation due to the severe cold weather across the US last week. The draw was assisted by a drop in imports and despite a small dip in exports. Cushing stocks show a large draw amid the large drop in North Dakota output. Refinery utilization fell the most since Dec 2022 to the lowest since early November down to 85.5%.
• Gasoline stocks showed a large build as suggested by the API data yesterday with a drop in exports and demand and despite the lower production on the week. Four week average implied demand fell back below the previous five year range.
• Distillates inventories fell with a drop in production while implied demand edged higher on the week and with a small increase in both imports and exports. Four week implied demand was still below the low end of the previous five year range.
  • Brent MAR 24 up 0.7% at 80.14$/bbl
  • WTI MAR 24 up 1% at 75.13$/bbl
  • Gasoil FEB 24 down -0.3% at 811$/mt
  • WTI-Brent up 0.17$/bbl at -5.01$/bbl
  • WTI MAR 24-APR 24 up 0.01$/bbl at 0.11$/bbl
  • WTI APR 24-MAY 24 up 0.02$/bbl at 0.13$/bbl
  • WTI JUN 24-DEC 24 up 0.11$/bbl at 2.21$/bbl
  • US gasoline crack down 0$/bbl at 18.96$/bbl
  • US ULSD crack down -0.3$/bbl at 37.13$/bbl