OIL: Crude Markets and Cracks Edge Higher on EIA Fuel Demand Increase

Crude markets and US gasoline and diesel crack spreads have edged higher following the release of the latest weekly EIA petroleum data with a build in crude stocks but small increase in fuel implied demand.

• Crude showed a build in line with API data yesterday but counter to market expectations despite a rise in exports and increase in refinery runs while production once again remined unchanged. The adjustment figure showed a large change on the week. Refinery utilisation rose more than expected again to the highest since mid Jan. Gulf Coast rates however remain below levels seen this time last year.
• Gasoline stocks as expected drew with higher production set against a rise in implied demand and drop in exports. Four week implied demand rose so counter some of the decline seen during April.
• Distillates stocks showed a small increase with higher production partially offset by a rise in exports. Weekly implied distillates demand edged higher with the four week average extending the recent recovery but still below seasonal levels seen in all recent years except for 2020.
• Brent JUL 24 down 0.8% at 82.18$/bbl
• WTI JUL 24 down 0.8% at 78$/bbl
• WTI-Brent up 0.12$/bbl at -4.18$/bbl
• Brent JUL 24-AUG 24 up 0.02$/bbl at 0.2$/bbl
• Brent DEC 24-DEC 25 down 0.09$/bbl at 4$/bbl
• US gasoline crack down 0.7$/bbl at 25.73$/bbl
• US ULSD crack down 0.6$/bbl at 25.14$/bbl