Gasoline Cracks Rally on Rise in EIA Implied Demand

Crude futures are easing back slightly from earlier gains after a larger than expected rise in refinery utilisation and an unexpected draw in US crude stocks according to the weekly EIA petroleum data. Gasoline cracks extends gains to the highest since August with a rise in implied demand while diesel cracks hold steady after an unexpected stock build.

• Crude inventories showed the first draw in seven weeks counter to the Bloomberg survey expectations but as suggested by API data yesterday. The draw was driven by another drop in production and a larger than expected rise in refinery runs. Both imports and exports showed a large decline on the week.
• Refinery utilisation recovered for a third week as units return from outages except for the Midwest with the ongoing BP Whiting refinery works.
• Gasoline stocks drew more than expected with higher exports and small increase in implied demand offsetting an increase in production. Four week implied demand rose faster than the seasonal trend back closer towards the previous five year average.
• Distillates stocks showed an unexpected build due to a drop in implied demand combined with the higher production and despite a rise in exports. Four week average implied demand remains at the lower end of the previous five year range.
  • Brent MAY 24 up 1.8% at 83.39$/bbl
  • WTI APR 24 up 1.9% at 79.07$/bbl
  • WTI-Brent unchanged at -4.69$/bbl
  • WTI APR 24-MAY 24 up 0.06$/bbl at 0.37$/bbl
  • WTI JUN 24-DEC 24 up 0.37$/bbl at 3.63$/bbl
  • US gasoline crack up 1.1$/bbl at 32.28$/bbl
  • US ULSD crack up 0.8$/bbl at 33.2$/bbl