OIL: Crude Falls After US Stock Draw as Market Weighs OPEC+ Output Decision

Crude markets have given up some of the earlier gains after the latest EIA crude stocks draw as the market assess the impact of news of a two month delay in OPEC+ supply hikes. US crude stocks extended the recent declining trend according to the update EIA weekly petroleum data. Gasoline cracks have extended the decline with a fall in implied demand in the week while diesel cracks find some support with distillates demand rising in the week.

• US crude inventories fell more than expected but in line with API data driven primarily by a drop in imports and assisted by a small increase in exports and higher refinery runs. Refinery utilisation held onto gains seen last week at the highest since mid July at 93.3%. Production remained unchanged at 13.3mbpd.
• Gasoline stocks showed a small, unexpected build with higher production and a drop in weekly implied demand to offset a decline in imports. Four week implied demand was marginally lower to hold just below the previous five year average.
• Distillates stocks showed a small decline with increased production offset by a small increase in implied demand. Distillates inventories in PADD 1 rose to the highest since March 2023 but were offset by a draw on the US Gulf Coast. Four week average implied distillate demand has recovered back up to the low end of the previous five year range but remains well below seasonal normal levels.
  • Brent NOV 24 up 1.1% at 73.53$/bbl
  • WTI OCT 24 up 1.3% at 70.08$/bbl
  • WTI-Brent up 0.04$/bbl at -4.19$/bbl
  • Brent NOV 24-DEC 24 up 0.03$/bbl at 0.45$/bbl
  • Brent DEC 24-DEC 25 down 0.04$/bbl at 1.8$/bbl
  • US gasoline crack down 1.3$/bbl at 11.55$/bbl
  • US ULSD crack up 0.3$/bbl at 21.75$/bbl