Crude Holding Gains on Larger than Expected EIA Stock Draw

Crude markets are maintaining earlier gains after a larger than expected draw in US crude inventories from the weekly EIA data. Diesel cracks have dipped with anther drop in demand but gasoline cracks have edged back up to the highs of the week.

• US crude inventories fell this week despite another unexpected drop in exports driven by a decline in imports while refinery runs fell and production remained unchanged on the week. Cuhsing stocks as expected rose again to the highest since mid August. Gulf Coast stocks fell for the third week amid efforts to avoid year end tax but Midwest stocks rose to the highest since August.
• Distillates stocks rose on the week driven by an increase in imports and despite a drop in production. Four week implied demand fell again this week to remain below the five year range despite the weekly data remaining unchanged.
• Gasoline stocks showed a smaller than expected build with a recovery in weekly implied demand helping to keep the four week average unchanged on the week. A rise in exports also contributed to the lower than expected stock levels.
  • Brent FEB 24 up 1% at 73.98$/bbl
  • WTI JAN 24 up 1.1% at 69.34$/bbl
  • WTI-Brent down -0.02$/bbl at -4.4$/bbl
  • WTI JAN 24-FEB 24 down -0.01$/bbl at -0.25$/bbl
  • WTI JUN 24-DEC 24 up 0.03$/bbl at 0.77$/bbl
  • US gasoline crack up 0.1$/bbl at 14.95$/bbl
  • US ULSD crack up 0.6$/bbl at 37.52$/bbl