Gasoline Jumps on EIA Draw

Gasoline cracks have surged during US hours after EIA data showed a larger than expected draw in stocks.

• RBOB NOV 23 up 3.1% at 2.36$/gal
• US gasoline crack up 1.4$/bbl at 10.29$/bbl
• Gasoline drew with a recovery in demand and despite lower exports and higher imports. Production is also up on the week.
• EIA Weekly US Petroleum Summary - w/w change week ending Oct 13: Gasoline stocks -2,370 vs Exp -240, Implied mogas demand +362.
• Despite the recovery on the day, gasoline cracks continue to hover at multi-year lows, driven by poor demand.
• Prior to the recent fall in late September, gasoline cracks had not seen such lows since Feb. 2021.
• Four-week average gasoline demand is still below the five year average for this time of year despite a small increase on the week.
• Pump prices are also falling across the US, with additional falls of around 15-35 cents/gal expected in the coming weeks, according to GasBuddy.