Gasoline Cracks Softer After EIA Data Suggests Slowing Demand Rise

Crude markets edge higher after a build in US crude inventories according to the updated weekly EIA petroleum data. A Blomberg survey had expected a small draw but API data had suggested a large build. Gasoline cracks have eased lower in response to the data with an unexpected build amid a slow increase in implied demand. Diesel cracks are slightly stronger driven by a recovery in demand.

• Crude stocks built with a dip in exports and higher imports offsetting an increase in refinery runs. US production maintained at 13.1mbpd while refinery utilisation once again rose more than expected up to 88.7%. Cushing stocks rose largely in line with expectations showing the biggest weekly increase since Jan 2023.
• Gasoline stocks showed an unexpected build due to a drop in exports and slightly lower weekly implied demand. Four week implied gasoline demand however gained again to continue the trend from a low in mid January.
• Distillates inventories fell driven by an increase in implied demand and assisted by a rise in exports. Four week implied distillates demand rose to the highest since December to return just within the previous five year range for the time of year, although still well below normal.
  • Brent MAY 24 down 0.3% at 86.02$/bbl
  • WTI MAY 24 down 0.2% at 81.48$/bbl
  • WTI-Brent up 0.04$/bbl at -4.53$/bbl
  • WTI MAY 24-JUN 24 up 0.02$/bbl at 0.6$/bbl
  • WTI JUN 24-DEC 24 down 0.03$/bbl at 4.09$/bbl
  • US gasoline crack down 0.4$/bbl at 30.82$/bbl
  • US ULSD crack down 0.1$/bbl at 28.02$/bbl