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Crude Falls on US Stocks Build and Cracks Weaker on Drop in Demand

OIL

Crude markets are easing lower back near to flat on the day after a bigger than expected build in US crude inventories according to the latest EIA weekly petroleum status report. Diesel cracks have fallen, and gasoline cracks edged lower after stock builds and with both showing a drop in implied demand on the week.

  • Crude stocks built more than expected with a build on the Gulf Coast driven by a large decline in exports on the week while refinery runs also showed an unexpected drop. Production remains unchanged again at 13.1mbpd while imports ticked slightly lower. Refinery runs fell by 0.3% counter to an expected increase of 0.5% driven by a big drop in rates in the Midwest but rates rose to 91.4% in the Gulf Coast.
  • Gasoline stocks showed a small build with an unexpected drop in implied demand and higher imports to offset slightly higher exports and a drop in production. Four week implied demand remains slightly above normal despite a reversal of gains seen the previous week.
  • Distillates stocks also built driven by a drop in implied demand to fall further below the previous five year range and despite a small increase in exports.
    • Brent JUN 24 down 0% at 89.4$/bbl
    • WTI MAY 24 down 0.1% at 85.15$/bbl
    • WTI-Brent up 0.02$/bbl at -4.96$/bbl
    • WTI MAY 24-JUN 24 down 0.05$/bbl at 0.72$/bbl
    • WTI JUN 24-DEC 24 down 0.17$/bbl at 4.76$/bbl
    • US gasoline crack down 0.4$/bbl at 29.84$/bbl
    • US ULSD crack up 0.4$/bbl at 27.44$/bbl
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Crude markets are easing lower back near to flat on the day after a bigger than expected build in US crude inventories according to the latest EIA weekly petroleum status report. Diesel cracks have fallen, and gasoline cracks edged lower after stock builds and with both showing a drop in implied demand on the week.

  • Crude stocks built more than expected with a build on the Gulf Coast driven by a large decline in exports on the week while refinery runs also showed an unexpected drop. Production remains unchanged again at 13.1mbpd while imports ticked slightly lower. Refinery runs fell by 0.3% counter to an expected increase of 0.5% driven by a big drop in rates in the Midwest but rates rose to 91.4% in the Gulf Coast.
  • Gasoline stocks showed a small build with an unexpected drop in implied demand and higher imports to offset slightly higher exports and a drop in production. Four week implied demand remains slightly above normal despite a reversal of gains seen the previous week.
  • Distillates stocks also built driven by a drop in implied demand to fall further below the previous five year range and despite a small increase in exports.
    • Brent JUN 24 down 0% at 89.4$/bbl
    • WTI MAY 24 down 0.1% at 85.15$/bbl
    • WTI-Brent up 0.02$/bbl at -4.96$/bbl
    • WTI MAY 24-JUN 24 down 0.05$/bbl at 0.72$/bbl
    • WTI JUN 24-DEC 24 down 0.17$/bbl at 4.76$/bbl
    • US gasoline crack down 0.4$/bbl at 29.84$/bbl
    • US ULSD crack up 0.4$/bbl at 27.44$/bbl