Crude Falls After EIA Inventory Build

Crude is trading lower after an unexpected build in US crude stocks in the latest EIA weekly petroleum data driven by a slower than expected recover in refinery utilisation. Gasoline cracks are slightly softer while diesel cracks hold onto earlier gains.

• US crude stocks built with refinery runs showing a further decline following on from the significant fall last week as refineries were slow to start operations from the cold weather disruption. Production recovered back up to 13mbpd while exports also declined on the week. Cushing stocks fell to the lowest levels since November. The SPR is slowly refilling with about 10.6mbbls added since July.
• Distillates inventories fell more than expected due to a drop in production along with lower imports to offset softer implied demand. Four week implied demand increased but remains at the lower end of the previous five year range.
• Gasoline stocks built boosted by an increase in production and despite implied demand gains along with higher exports and lower imports. Four week implied demand is holding just below the previous five year average.
  • Brent APR 24 down -1.8% at 81.05$/bbl
  • WTI MAR 24 down -2.1% at 76.16$/bbl
  • WTI-Brent down -0.68$/bbl at -5.64$/bbl
  • WTI MAR 24-APR 24 down -0.06$/bbl at 0.11$/bbl
  • WTI JUN 24-DEC 24 down -0.22$/bbl at 2.53$/bbl
  • US 321 crack up 0.2$/bbl at 25.48$/bbl
  • US gasoline crack down -0.5$/bbl at 18.04$/bbl
  • US ULSD crack up 1.6$/bbl at 40.36$/bbl