OIL: Crude Drifts Off Highs but Gasoline Rallies on EIA Data

Crude markets are easing slightly lower but still net higher on the day after a larger than expected draw in US crude inventories according to the update EIA weekly petroleum data. Gasoline cracks have rallied driven by a stock draw while implied demand holds steady on the week.

• US crude inventories as expected showed a draw for the fifth consecutive week with a surge in exports to just below 5mbpd to offset am unexpected drop in refinery runs. Exports are supported by demand from Europe. Refinery utilisation fell counter to expectation to the lowest since early May at 90.1%.
• Gasoline stocks fell driven by a drop in production and despite slightly higher imports and a pull back in implied demand on the week. Four week implied demand was just marginally lower to maintain most of the gains from the previous week.
• Distillates stocks rose driven by a drop in exports and lower implied demand. Four week average implied demand was holding around the previous five year seasonal average level.
• Jet fuel demand continues at the highest seasonal level since 2019 but dipped amid the global IT outage.
  • Brent OCT 24 up 2.3% at 79.87$/bbl
  • WTI SEP 24 up 2.5% at 76.62$/bbl
  • WTI-Brent down 0.01$/bbl at -3.87$/bbl
  • Brent OCT 24-NOV 24 up 0.05$/bbl at 0.56$/bbl
  • Brent DEC 24-DEC 25 up 0.54$/bbl at 3.57$/bbl
  • US gasoline crack up 0.6$/bbl at 24.29$/bbl
  • US ULSD crack up 0.1$/bbl at 24.38$/bbl