OIL: Crude Erases Some Previous Gains After Weekly EIA Data

{7i}{us} Crude front month reversed some of the earlier gains after the updated EIA US weekly petroleum data showed another record high production. Diesel cracks have softened due to further weakening of US implied demand, but gasoline cracks remain relatively unchanged.

• US crude inventories fell slightly more than expected despite an increase in production and a drop in refinery runs. Crude production rose to another new record high of 13.63mb/d. Refinery runs reversed some of the increase seen the previous week back to 92.4% but remains high for the time of year. Both imports and exports showed a large correction lower this week. Cushing stocks fell below the seasonal five year range lows.
• Gasoline stocks rose more than expected driven by a large increase in production and despite a small gain in implied demand. The four week average implied gasoline demand edged lower to remain in line with the previous five year average.
• Distillates stocks also rose with a dip in exports and higher imports to offset lower production and slightly higher weekly implied demand. However, the four week average distillates demand fell again to the lowest since August to remain below the seasonal range lows.
  • Brent FEB 25 up 0.8% at 72.74$/bbl
  • WTI JAN 25 up 1% at 69.31$/bbl
  • Brent FEB 25-MAR 25 up 0.04$/bbl at 0.33$/bbl
  • Brent JUN 25-DEC 25 up 0.09$/bbl at 1.04$/bbl
  • WTI JAN 25-FEB 25 up 0.07$/bbl at 0.39$/bbl
  • WTI JUN 25-DEC 25 up 0.12$/bbl at 1.2$/bbl