OIL: Crude Holds Losses but Gasoline Rallies After EIA US Inventory Data

Crude markets are maintaining earlier losses after a larger than expected US crude inventory build according to the update EIA weekly petroleum data. Gasoline cracks spread have seen support from a larger than expected stocks draw and a surge in implied demand.

• US crude inventories rose more than expected again this week although less than shown by the API data. The rise was driven by another bigger than expected drop in refinery utilisation and increase in production back up to record levels of 13.4mbpd and despite a net drop in imports in the week. Refinery utilisation fell for the fifth consecutive week with crude processing falling 1.3mbpd in that period but still above levels this time last year. Cushing stocks continued to recover from the September lows but remain near five year range lows.
• Gasoline and distillates stocks both drew more than expected with a surge in weekly implied demand and lower imports and despite higher production. Gasoline imports were the lowest since February.
• Four week implied gasoline demand rebounded above normal for the first time since mid August. Four week average implied distillate demand followed the seasonal trend higher but remains just below normal.
  • Brent DEC 24 down 1.7% at 75.85$/bbl
  • WTI NOV 24 down 1.7% at 72.31$/bbl
  • Brent DEC 24-JAN 25 up 0.01$/bbl at 0.4$/bbl
  • Brent DEC 24-DEC 25 down 0.15$/bbl at 2.49$/bbl
  • US gasoline crack up 0.2$/bbl at 13.41$/bbl
  • US ULSD crack down 0.5$/bbl at 22.57$/bbl