Crude Holds Gains and Cracks Rally After US Inventory Draws

Crude remains relatively unchanged and still up on the day after a larger than expected draw in US inventories while the WTI-Brent spread closes slightly with another draw at Cushing. Diesel and gasoline cracks have gained ground following the data showing a draw in stocks and small recovery in demand.

• Crude stocks showed a larger than expected draw driven by a bounce in exports back over 5mbbls after the decline seen last week. Imports also fell while production remain unchanged at record levels and refinery runs show an unexpected recovery.
• Cushing stocks fell again to the lowest since October 2014 at 21.01mbbls.
• Distillates drew with a slight drop in production and imports and recovery in demand offsetting a drop in exports.
• Gasoline also drew with a recovery in demand despite lower exports and higher imports with production also up on the week.
• Four week average gasoline demand is still below the five year average for this time of year despite a small increase on the week while distillates demand is holding just below the five year average.
  • Brent DEC 23 up 1.5% at 91.24$/bbl
  • WTI NOV 23 up 1.7% at 88.1$/bbl
  • WTI-Brent up 0.3$/bbl at -4.17$/bbl
  • WTI NOV 23-DEC 23 down -0.2$/bbl at 1.02$/bbl
  • WTI DEC 23-JAN 24 up 0.03$/bbl at 1.17$/bbl
  • WTI DEC 23-DEC 24 up 0.71$/bbl at 8.42$/bbl
  • US gasoline crack up 0.8$/bbl at 9.71$/bbl
  • US ULSD crack down -1.1$/bbl at 44.46$/bbl