Crude Supported by Softer Dollar After Falling on US Stocks Build

Crude is showing a moderate recovery today after falling around $3/bbl yesterday driven by building US crude inventories, soft global demand concerns and with added pressure from the hope for an Israel-Hamas ceasefire deal.

• Brent JUL 24 up 0.7% at 84.01$/bbl
• WTI JUN 24 up 0.7% at 79.52$/bbl
• Gasoil MAY 24 up 0.2% at 754.5$/mt
• WTI-Brent down 0.1$/bbl at -5.03$/bbl
• Crude futures today are supported by a softer US dollar after US Fed Chair Powell yesterday said that another rate hike is unlikely. Concern that the US could take longer than previously thought to bring down inflation is weighing on global demand growth sentiment.
• Weekly EIA petroleum data showed a large crude stocks build driven by a drop in US exports combined with an unexpected decline in refinery runs in the week.
• OPEC’s crude production was steady at 26.81mb/d in April, leaving the bloc’s latest cuts incomplete, Bloomberg said. Iraq and the UAE continue to produce several hundred thousand barrels per day above their quota.
  • Brent JUL 24-AUG 24 up 0.01$/bbl at 0.66$/bbl
  • Brent DEC 24-DEC 25 up 0.1$/bbl at 4.88$/bbl
• Brent time spread have followed the futures moves with both the prompt and longer term spreads falling to the lowest since March.
• Gasoline cracks pulled back strongly from earlier gains on softer demand while diesel spreads are stable with a pause in the weaker demand trend. EIA showed further weakness in US gasoline demand against the normal seasonal increasing trend at the start of the summer driving season, but distillates implied demand saw a small recovery on the week.
  • US gasoline crack down 0.1$/bbl at 28.91$/bbl
  • US ULSD crack up 0.1$/bbl at 24.14$/bbl