Crude Extends Losses After Expected US Crude Stocks Draw

Crude extends earlier losses after a crude draw in line with market expectations according to the latest EIA weekly petroleum data. Diesel cracks are weaker and gasoline slightly stronger in reaction to a rise in gasoline implied demand but ongoing soft distillates demand.

• Crude stocks as expected drew driven by a further recovery in US refinery utilisation rates as well as a rebound in crude exports to offset a small recovery in imports. Overall refinery utilisation is up to the highest since Jan. 12 at 87.8%. US production was unchanged on the week after declines seen earlier this month. The adjustment factor was the largest since November.
• Gasoline stocks also drew in line with expectation driven by a drop in imports and lower production on the week. PADD 3 gasoline inventories fell to the lowest since March 2021 after a halt to the TotalEnergies Port Arthur FCC last week. Weekly implied demand data showed a fall on the week but the four week average continued to rise faster than the seasonal trend back to near normal levels.
• Distillates stocks increased on the week due to an increase in production and drop in exports. Weekly implied demand increased but the four week average remains below the previous five year seasonal range.
  • Brent MAY 24 down 1.7% at 85.88$/bbl
  • WTI MAY 24 down 1.9% at 81.14$/bbl
  • WTI-Brent down 0.1$/bbl at -4.75$/bbl
  • WTI MAY 24-JUN 24 down 0.12$/bbl at 0.53$/bbl
  • WTI JUN 24-DEC 24 down 0.41$/bbl at 4.11$/bbl
  • US gasoline crack up 0.3$/bbl at 32.48$/bbl
  • US ULSD crack down 1.4$/bbl at 31$/bbl