OIL: Crude and Diesel Markets Rally on EIA Stock Draws

{7i}{us} Crude markets have rallied following a larger than expected draw in US crude inventories according to the update EIA weekly petroleum data. Gasoline cracks have seen further weakness following the data but diesel cracks have rallied with a larger than expected draw.

• US crude inventories resumed the declining trend driven by a larger than expected increase in refinery runs and despite an increase in production back to 13.4mb/d.  Imports and exports both showed an increase on the week as export volumes to Europe remain healthy. Refinery utilisation unexpectedly rose to the highest since mid July at 92.3% with the PADD 2 Midwest to 96.6% due to the return of the Joliet refinery.
• Gasoline stocks fell as expected with an increase in implied demand offsetting higher production and a drop in exports. Four week implied demand however edged slightly lower on the week in line with the seasonal trend.
• Distillates stocks drew more than expected, especially in the PADD 3 Gulf Coast region, driven largely by an increase in exports to offset the increase in production. Four week average implied demand continues to disappoint, falling back below the previous seasonal five year range.
  • Brent OCT 24 up 1% at 78$/bbl
  • WTI OCT 24 up 1% at 73.9$/bbl
  • WTI-Brent down 0.03$/bbl at -4.1$/bbl
  • Brent OCT 24-NOV 24 up 0.05$/bbl at 0.67$/bbl
  • Brent DEC 24-DEC 25 up 0.22$/bbl at 3.27$/bbl
  • US gasoline crack down 0.6$/bbl at 13.59$/bbl
  • US ULSD crack up 0.5$/bbl at 23.42$/bbl