OIL PRODUCTS
The latest EIA weekly petroleum status report for the week to May 31 showed fresh weakness in the gasoline and distillates implied demand amid sings of a stall in the recent recovery.
- Weekly implied distillates demand fell this week resulting in a pull back in the four week average after gains seen in previous weeks. Implied demand continues to disappoint and remains below all recent years except for 2020.
- Despite a decline in the weekly gasoline data, the four-week average implied demand however edged higher to continue the recovery since the mid-April low. The rate of increase has however slowed after seeing a recovery of nearly 0.5mbpd to the highest since July 2023.
- Jet fuel demand, on a four week basis, continues to rise up towards the high end of the previous five year range following a strengthening trend in place since late January. Current demand is the highest since November and edging towards seasonal levels seen in 2019.
- Brent AUG 24 down 0.1% at 77.48$/bbl
- WTI JUL 24 down 0.1% at 73.16$/bbl
- US gasoline crack up 0.1$/bbl at 25.04$/bbl
- US ULSD crack down 0.2$/bbl at 22.76$/bbl
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