OIL: Crude Pulls Back After Expected US Crude Draw but Drop in Ref Runs

Crude futures have reversed some of the earlier gains despite an expected draw in US crude stocks shown in the latest EIA weekly petroleum inventory data. Gasoline and diesel cracks have edged higher in reaction to the data with unexpected stocks draws and four week implied fuel demand holding steady on the week. 

• Crude stocks drew in line with expectation with a correction of the large swings in imports and exports seen last week.  Imports saw a last fall and exports a large decline on the week and back to near levels near the previous week with a correction in the adjustment figure. Crude production was unchanged on the week while refinery utilisation saw an unexpected decline back to 93.5%.
• Gasoline stocks drew driven by higher exports and an increase in demand on the week. Gasoline exports rose above 1mbpd to a seasonal record. Four week implied demand remained relatively unchanged to maintain the gain seen during May.
• Distillates stocks also fell counter to expectations driven by a drop in production and increase in implied demand despite a drop in exports. Four week implied demand edged back up after seeing a decline in the previous couple of weeks.
• Jet fuel demand continues to rise and is approaching record seasonal levels from 2019.
  • Brent AUG 24 up 0.6% at 85.58$/bbl
  • WTI AUG 24 up 0.5% at 81.12$/bbl
  • Brent AUG 24-SEP 24 up 0.02$/bbl at 0.8$/bbl
  • Brent DEC 24-DEC 25 up 0.03$/bbl at 5$/bbl
  • US gasoline crack down 0.5$/bbl at 23.09$/bbl
  • US ULSD crack down 1.2$/bbl at 23.98$/bbl