Crude Extends Decline After EIA Stock Data

Crude continues to fall after the updated EIA stock data showed a draw in crude as expected and weak product demand leading to gasoline and distillate builds. Gasoline crack spreads are drifting lower while distillate cracks are gaining ground.

• Crude inventories declined largely in line with forecasts as the refinery utilisation continues to recover as expected. An unexpected increase in crude imports was offset by ongoing strong exports. Cushing inventories declined again to remain below the five year range.
• A build in distillate and gasoline stocks was assisted by a dip in exports and small increase in imports. The four week gasoline supplied fell again to remain only just above 2020 levels while distillate supplied is holding near range lows.
• Despite the overall build in US stocks, the East Coast gasoline stocks fell to the lowest since 2012 due to a drop in imports from Europe.
  • Brent JAN 23 down -4.6% at 84.3$/bbl
  • WTI JAN 23 down -4.9% at 76.99$/bbl
  • WTI-Brent up 0.03$/bbl at -7.3$/bbl
  • Brent JAN 23-FEB 23 down -0.45$/bbl at 0.21$/bbl
  • Brent JUN 23-DEC 23 down -0.66$/bbl at 2.67$/bbl
  • US gasoline crack down -0.8$/bbl at 20.94$/bbl
  • US ULSD crack up 1.8$/bbl at 61.99$/bbl