Crude Rallies on EIA Inventory Draw

Crude regains some of the earlier losses after a larger than expect draw in US inventories in the weekly EIA data. Diesel and Gasoline cracks are edging higher despite stock builds with strong product exports.

• Larger than expected draw in crude stocks on the back of ongoing high exports, decline in imports and larger than expected refinery utilisation. Crude imports were the lowest since May 2021. Refinery utilisation continues to recover as facilities return from maintenance to reach the highest seasonal level since 2004.
• Draw at Cushing keeps levels at the bottom of the five year range for this time of year.
• The high refinery utilisation helped build product stock levels despite strong distillate and gasoline exports. A fall in distillate and gasoline product supplied added to the stock build.
  • Brent JAN 23 down -1.3% at 92.68$/bbl
  • WTI DEC 22 down -1.8% at 85.33$/bbl
  • Gasoil DEC 22 up 0.8% at 998.25$/mt
  • WTI-Brent down -0.35$/bbl at -7.96$/bbl
  • US gasoline crack up 0.8$/bbl at 19.52$/bbl
  • US ULSD crack up 1.3$/bbl at 66.78$/bbl