Crude Gains, Gasoline Cracks Fall After EIA Data

Crude markets extend gains after a below expected crude draw and another drop in Cushing stocks. Gasoline cracks have fallen with further weakness in demand driving an unexpected stock build.

• Crude stocks showed a larger than expected draw despite a drop in exports and higher imports with a big drop in the crude adjustment figure again. Refinery utilization fell even more than expected to the lowest since April amid the season maintenance outages.
• Cushing stocks as expected fell again to the lowest since July 2022 with the prompt WTI curve rallying further on the tight near term supplies.
• Gasoline and distillates stocks unexpectedly gained with both showing a drop in exports and slightly higher imports. Gasoline production fell with the drop in refineries runs but distillates production increased slightly on the week.
• Gasoline four week average demand has fallen again in line with the seasonal trend despite an increase in the weekly data. Four week average distillates demand however rose to hold above the five year average amid a recovery in the trucking industry and harvest activity.
  • Brent NOV 23 up 2.1% at 95.96$/bbl
  • WTI NOV 23 up 2.8% at 92.9$/bbl
  • Gasoil OCT 23 up 1.4% at 967.75$/mt
  • WTI-Brent up 0.5$/bbl at -3.05$/bbl
  • WTI NOV 23-DEC 23 up 0.46$/bbl at 2.07$/bbl
  • WTI DEC 23-DEC 24 up 1.43$/bbl at 11.78$/bbl
  • US 321 crack down -1.5$/bbl at 23.45$/bbl
  • US gasoline crack down -1.2$/bbl at 14.32$/bbl
  • US ULSD crack down -2.1$/bbl at 41.71$/bbl