OIL: Crude Recovers Some Ground After EIA Crude Stock Draw

Crude regains some of the earlier losses but remains net down on the day after EIA weekly petroleum data showed a bigger than expected draw in crude stocks although approximately in line with API data from yesterday. Gasoline cracks are holding onto the small gains from earlier today after a small draw and slight recovery in demand while low distillates demand still weighs on diesel despite another gain on the week.

• Crude stocks drew with an increase in refinery runs and offsetting declines in both imports and exports. Refinery utilisation increased more than expected by 1.9% and back above 90% for the first time since early January. Crude production was once again unchanged at 13.1mbpd.
• Gasoline stocks showed a small draw counter to expectation of a small build with a slight increase in implied weekly demand and higher exports to offset higher production.  Four week implied demand was marginally higher but continues to disappoint and is holding below the seasonal normal levels.
• Distillates stocks were almost unchanged on the week with a drop in exports set against a rise in implied demand. Four week implied demand has extended the recent recovery from a low on April 19 but remains below all recent years except for 2020.
  • Brent JUL 24 down 0.7% at 81.78$/bbl
  • WTI JUN 24 down 0.8% at 77.43$/bbl
  • WTI JUN 24-JUL 24 down 0.02$/bbl at 0.35$/bbl
  • WTI JUN 24-DEC 24 down 0.16$/bbl at 2.63$/bbl
  • US gasoline crack up 0.7$/bbl at 26.06$/bbl
  • US ULSD crack down 0.1$/bbl at 23.48$/bbl