EIA Stock Build Adds to Bearish Pressure on Crude

A larger than expected build in US crude inventories has added to the bearish pressure on crude markets following the downward pressure due to the delay to the upcoming OPEC+ meeting. Diesel cracks are seeing some support with another stock draw while gasoline is seeing downside pressure due to a fresh decline in implied demand.

• Crude inventories rose 8.7mbbls to the highest since July supported by a slight dip in exports and higher imports while production held up at record levels again. Cushing stocks continue to regain ground back to the lower end of the five year range while refinery utilisation as expected increased as facilities return from maintenance. Overall rates of 87% are still below the 9 year average of around 90%.
• Distillates stocks fell again to the lowest since May 2022 despite an increase in production driven by a drop in imports and slightly higher exports. Four week implied demand was unchanged on the week and therefore still near the five year range lows.
• Gasoline stocks unexpectedly built with a drop in implied demand to halt the recovery seen over the previous few weeks. Gasoline production dipped on the week despite the higher refinery runs but imports rose and exports fell to add to the overall build.
  • Brent JAN 24 down -4.4% at 78.86$/bbl
  • WTI JAN 24 down -4.6% at 74.23$/bbl
  • WTI-Brent up 0.06$/bbl at -4.62$/bbl
  • WTI JAN 24-FEB 24 down -0.03$/bbl at -0.18$/bbl
  • WTI DEC 23-DEC 24 up 0.24$/bbl at 2.55$/bbl
  • US gasoline crack down -0.3$/bbl at 14.66$/bbl
  • US ULSD crack down -0.2$/bbl at 42.1$/bbl