OIL: Crude Falls After Unexpected US Inventory Build

Crude markets have fallen after an unexpected build in US crude inventories according to the update EIA weekly petroleum data. US gasoline and diesel crack spreads have edged higher with a larger than expected draw in product stocks and slight increase in implied demand. 

• US crude inventories rose for the first time since the week to Jun 21 with an increase in refinery runs set against a drop in production back to 13/3mbpd and net increase in exports. Refinery utilisation unexpectedly rose by 1% back towards levels seen in mid July of 91.5% but rates in the Midwest fell to 86.2%.
• Gasoline stocks declined on the week driven by a drop in production and small increase in implied demand. Inventories are at the lowest since November with a sizeable draw in the Gulf Coast region. Four week implied demand is holding near normal with a small increase this week.
• Distillates stocks also drew more than expected driven by a drop in production and higher implied demand. Four week average implied demand has fallen further below the previous five year average with little change compared to a typical seasonal rise expected after July.
  • Brent OCT 24 down 0.4% at 80.33$/bbl
  • WTI SEP 24 down 0.8% at 77.69$/bbl
  • WTI-Brent down 0.08$/bbl at -3.97$/bbl
  • WTI SEP 24-OCT 24 down 0.23$/bbl at 1.32$/bbl
  • WTI DEC 24-DEC 25 down 0.27$/bbl at 4.13$/bbl
  • US gasoline crack down 0$/bbl at 21.46$/bbl
  • US ULSD crack up 0.1$/bbl at 22.18$/bbl