OIL: Crude Edges Back Up After US Crude Stocks Draw

Crude markets have reverse some of the earlier decline after a larger than expected draw in US crude stocks according to the update EIA weekly petroleum data. Diesel and gasoline cracks spreads are maintaining small gains amid stocks draws and slightly higher weekly implied demand to keep four week average levels near seasonal norms.

• US crude inventories fell more than expected but in line with the API data driven by a larger than expected drop in refinery runs and despite a decline in weekly exports. Production remained unchanged at 13.2mbpd. Cushing showed a small gain on the week, but overall levels remain near tank bottom levels. Refinery ulitsation fell more than expected amid maintenance and unplanned outages due to a hurricane but remains above 90% of capacity.
• Gasoline stocks drew with an increase in weekly implied demand to more than offset a rise on production in the week. Gasoline imports and exports both rose to reverse declines seen the previous week.  Four week implied gasoline demand edged lower to hold in line with the seasonal normal.
• Distillates inventories also showed a draw due to higher implied demand combined with a drop in production. Both imports and exports edged lower in the week. Four week average implied distillate demand rose to the highest since Nov. 2023 to maintain just above the previous five year seasonal average.
  • Brent NOV 24 down 0.9% at 74.52$/bbl
  • WTI NOV 24 down 1.1% at 70.74$/bbl
  • Brent NOV 24-DEC 24 down 0.07$/bbl at 0.63$/bbl
  • Brent DEC 24-DEC 25 down 0.33$/bbl at 1.64$/bbl
  • US gasoline crack up 0.3$/bbl at 13.01$/bbl
  • US ULSD crack up 0.6$/bbl at 21.64$/bbl