Large US Crude Stock Build on Low Refinery Runs and a Fall in Exports

Crude holding onto gains as US inventory data shows a large build in crude stocks along the same lines as shown in the API data last night.

• The crude build was driven by low refinery utilisation, a fall in exports to the lowest since August and slightly higher production. Refinery runs recovered following the big fall last week after the winter disruption, but outages remained high in the week. The big fall in exports was potentially assisted by companies no longer trying to avoid holding product in storage to limit end of year Gulf Coast tax. Cushing stocks also gained due to lower refinery runs after the cold weather.
• An increase in distillate demand halts the recent downward trend but the four week gasoline demand continued to decline.
• Both distillate and gasoline exports also declined on the week as product output from refineries was limited due to the high outages.
  • Brent MAR 23 up 1.6% at 81.35$/bbl
  • WTI FEB 23 up 1.6% at 76.33$/bbl
  • WTI-Brent down -0.11$/bbl at -4.76$/bbl
  • WTI FEB 23-MAR 23 unchanged at -0.25$/bbl
  • WTI JUN 23-DEC 23 up 0.32$/bbl at 1.87$/bbl
  • US gasoline crack up 1.7$/bbl at 24.36$/bbl
  • US ULSD crack up 0.6$/bbl at 56.78$/bbl