Crude Reverses Initial Rally After US Crude Stocks Draw

Crude falls back after an initial rally in response to an unexpected fall in US crude inventories in the latest weekly EIA petroleum data. Gasoline cracks remain stable after a stock draw in the week while diesel cracks extend the recent bearish trend after an unexpected build and weak demand.

• Crude stocks fell driven by the Gulf Coast region due to strong exports and helped by an increase in refinery runs as facilities return from maintenance. Crude production was unchanged at 13.1mbpd while the week showed a large 909kbpd adjustment figure.
• Gasoline implied demand dipped again back below 2022 levels for the first time since early March. Gasoline stocks on the East Coast are the lowest since November ahead of a tight summer driving season.
  • Diesel stocks built as four week implied demand fell again to the lowest since the week to Jan 19.
  • Brent JUN 24 down 0.4% at 88.08$/bbl
  • WTI JUN 24 down 0.6% at 82.88$/bbl
  • WTI-Brent down 0.15$/bbl at -5.2$/bbl
  • WTI JUN 24-JUL 24 down 0.04$/bbl at 0.76$/bbl
  • WTI JUN 24-JAN 25 down 0.23$/bbl at 4.55$/bbl
  • US gasoline crack up 0.3$/bbl at 30.38$/bbl
  • US ULSD crack down 0.5$/bbl at 24.47$/bbl