OIL: Crude Holds Gains After Larger than Expected US Stock Draw

Crude markets are holding onto earlier gains after a larger than expected draw in US crude inventories according to the update EIA weekly petroleum data. Diesel and gasoline cracks remain weak with an increase in stock levels and softer four week implied demand data.

• US crude inventories showed a larger than expected draw despite higher imports with Canadian imports rising to a record high. Crude runs fell with a larger than expected pull back in refinery utilisation to reverse much of the gains the previous week.
• Gasoline stocks built driven by a drop in implied demand to counter some of the gains seen in recent weeks and despite a drop in production on the week. Four week implied demand fell back below levels seen this time last year.
• Distillates stocks also gained with higher production despite the drop in refinery runs while exports also dipped on the week.  Implied demand rose in the week but the four week average fell back further below the seasonal five year average.
  • Brent SEP 24 up 1.3% at 84.83$/bbl
  • WTI AUG 24 up 1.9% at 82.27$/bbl
  • Brent SEP 24-OCT 24 up 0.13$/bbl at 1.06$/bbl
  • Brent DEC 24-DEC 25 up 0.29$/bbl at 4.96$/bbl
  • US gasoline crack down 0.6$/bbl at 22.28$/bbl
  • US ULSD crack down 0.9$/bbl at 21.82$/bbl