Crude Falls on Weak Demand Despite Record Weekly Crude Draw

Crude markets fall further after the EIA data despite the record decline in US crude inventories amid weak demand data. Gasoline and diesel crack spreads also dipped lower with a drop in gasoline demand and unchanged diesel demand.

• Crude stocks drew with a rise in crude exports back above 5mbpd and big correction in the oil adjustment (unaccounted oil) figure and despite a bigger than expected drop in refinery utilisation and increase imports. US gulf coast crude inventories fell by a record volume. Cushing stocks as expected extend the recent trend lower.
• Diesel stocks drew with a drop in imports set against slightly higher production. Implied demand rose on the week but the four week average remained largely unchanged.
• Gasoline stocks built due to higher import and production and a drop in exports. Gasoline implied demand fell further on the week taking four week demand back towards the bottom of the previous five year range.
  • Brent OCT 23 down -1.6% at 83.54$/bbl
  • WTI SEP 23 down -1.9% at 79.83$/bbl
  • Gasoil AUG 23 down -2.3% at 890.75$/mt
  • WTI-Brent down -0.03$/bbl at -4.11$/bbl
  • WTI SEP 23-OCT 23 down -0.07$/bbl at 0.38$/bbl
  • WTI DEC 23-DEC 24 down -0.31$/bbl at 5.11$/bbl
  • US gasoline crack down -1.9$/bbl at 37.99$/bbl
  • US ULSD crack up 0.1$/bbl at 46.26$/bbl