OIL: Crude and Gasoline Markets Edge Higher After US Inventory Data

Crude markets have recovered some of the earlier losses after a small US crude inventory draw according to the update EIA weekly petroleum data. Gasoline cracks have seen some support while diesel is net unchanged, after an initial reaction higher, following small increases in implied demand on the week.

• US crude inventories fell but less than expected with an increase in refinery runs and drop in production partly offset by lower net exports on the week. Export fell with weakness in Asia and ahead of European refinery maintenance, according to Bloomberg. Refinery utilisation unexpectedly rose to the highest since mid July at 93.3% with rates in the Rockies (PADD 4) rising above 100% capacity. Cushing inventories fell to the lowest since November last year.
• Gasoline stocks fell as expected with an increase in implied demand and a dip in production offsetting an increase in imports. Four week implied demand was marginally higher to hold just below the previous five year average. 
• Distillates stocks showed a small, unexpected build driven by a drop in exports and higher production and despite an increase in implied demand. Four week average implied demand was however still below the previous seasonal five year range.
  • Brent OCT 24 down 0.9% at 78.8$/bbl
  • WTI OCT 24 down 1.1% at 74.71$/bbl
  • WTI-Brent down 0.07$/bbl at -4.1$/bbl
  • Brent OCT 24-NOV 24 up 0.03$/bbl at 0.92$/bbl
  • Brent DEC 24-DEC 25 down 0.21$/bbl at 3.37$/bbl
  • US gasoline crack up 0.4$/bbl at 12.82$/bbl
  • US ULSD crack down 0.3$/bbl at 21.11$/bbl