Crude Maintains Losses on Day Despite US Crude Stock Draw

Crude front month futures remain down on the day despite a larger than expected US crude inventory draw in the weekly EIA data. Gasoline cracks have been supported by a draw and increase in demand to reverse an earlier decline while diesel spreads are also almost unchanged on the day.

• Crude inventories showed a much larger than expected draw driven by a drop in imports and despite another unexpected dip in exports. Crude production remained up at record levels while higher refinery runs added to the draw. Utilization rates were up to 93.3% with Midwest at the highest level since August 2017.
• Gasoline stocks showed a small draw driven by an increase in implied demand on the week to offset a small drop in exports. Four week average implied demand is above the previous five year average for the first time since July.
• Distillates stocks rose boosted by higher production and despite a rise in exports and implied demand. The higher demand has taken the four week average demand back up within the previous five year range.
• The adjustment factor has once again shown a large change by 1.07kb/d on the week.
  • Brent MAR 24 down -1.3% at 78.54$/bbl
  • WTI FEB 24 down -1.1% at 73.28$/bbl
  • WTI-Brent up 0.22$/bbl at -5.37$/bbl
  • WTI FEB 24-MAR 24 up 0.05$/bbl at -0.18$/bbl
  • WTI JUN 24-DEC 24 down -0.13$/bbl at 1.83$/bbl
  • US gasoline crack up 0$/bbl at 16.7$/bbl
  • US ULSD crack up 0.1$/bbl at 35.46$/bbl