Crude Steady, Diesel Gains After EIA Stocks Data

Crude futures remain down on the day after EIA inventories shows a draw in line with market expectations. Deisel cracks gain ground with an unexpected stocks draw and pick up in demand with gasoline also supported by a drop in stocks.

• Crude stocks showed a draw largely in line with expectation driven by a recovery in exports back above 5mbpd, lower imports and despite a drop in refinery runs. Cushing stocks again declined to the lowest since July 2022.
• Refinery utilisation fell as expected with a drop on the east coast due to the start of Delta’s Monroe Energy maintenance and in the Midwest due to BP Whiting works.
• Diesel and gasoline stocks both unexpectedly drew to support cracks spreads. Gasoline production increased but as offset by lower imports and higher exports. Diesel production fell on the week and added to a drop in imports.
• Both distillates and gasoline implied demand gained on the week with the four week distillates demand picking up away from the five year seasonal low. Four week gasoline average demand however fell in line with the season al trend a the end of the summer driving season.
• The significant adjustment factor returned after showing almost flat last week and coincides with a swing in other oils inventories.
  • Brent NOV 23 down -0.3% at 94.06$/bbl
  • WTI NOV 23 down -0.3% at 90.19$/bbl
  • WTI-Brent down -0.05$/bbl at -3.89$/bbl
  • WTI NOV 23-DEC 23 down -0.03$/bbl at 1.28$/bbl
  • WTI DEC 23-DEC 24 down -0.27$/bbl at 9.62$/bbl
  • US gasoline crack up 0.3$/bbl at 20.45$/bbl
  • US ULSD crack down -1.8$/bbl at 49.62$/bbl