Crude Maintains Gains on US Stock Draw and Supply Concern

Crude futures and spreads rallied yesterday with Brent to $84.25/bbl to just below the highs seen in late February supported by disruption from drone attacks on Russian refineries and an unexpected draw in US crude stocks.

• Brent MAY 24 up 0.1% at 84.14$/bbl
• WTI APR 24 up 0.1% at 79.81$/bbl
• Gasoil APR 24 up 1.1% at 830.25$/mt
• WTI-Brent down 0.01$/bbl at -4.76$/bbl
• EIA data showed an unexpected 1.54mbbls draw in crude stocks last week, the first draw in seven weeks driven by another drop in production and a larger than expected rise in refinery runs. Refinery utilisation rose almost 1.9pp to 86.8%.
• Drone attacks on Russian facilities this week follow on from similar strikes on infrastructure targets which disrupted operations earlier this year. The latest strikes have halted some operations at Lukoil’s Norsi refinery and Rosneft’s Ryazan refinery while operations at the Novoshakhtinsk refinery restarted after an earlier halt.
• Updated IEA monthly oil report due today may help to give clarity to the balance in 2024 amid uncertain member compliance with OPEC+ output cuts and potential slower global oil demand growth this year.
  • Brent MAY 24-JUN 24 up 0.04$/bbl at 0.63$/bbl
  • Brent JUN 24-DEC 24 up 0.03$/bbl at 3.78$/bbl
• The gasoline cracks rallied to a new seven-month high after EIA showed gasoline stocks fell more than expected by 5.66mbbls signalling increased demand ahead of the driving season. Gains in diesel cracks were more muted after an unexpected stock build.
  • US gasoline crack down 0$/bbl at 31.85$/bbl
  • US ULSD crack up 0.1$/bbl at 33.49$/bbl