OIL: Crude Steady as US Stock Draw Weighed With Weak China Demand

Crude prices are holding towards the low end of yesterday’s trading range with signs of weakening demand growth in China set against industry data showing another decline in US crude inventories ahead of the official EIA data released later today. The stronger US dollar weighed on crude yesterday but today the USD index is flat.

• API data showed US crude inventories fell 4.44mbbl last week after drawdowns in the official EIA in the previous couple of weeks and with a survey expecting a 736kbbl draw, according to Bloomberg. Gasoline rose 365kbbl and distillate 4.92mbbl.
• China’s crude oil imports showed an annual fall of 11% at 46.45m mt in June, extending the weakness after falling 8.7% on the year in May, OilChem said citing GACC data.
• Russia plans to make extra crude production cuts to compensate for pumping above its OPEC+ quota, likely in the warm season of 2024 and 2025, sources told Bloomberg.
• Diesel and gasoline cracks continue to soften with downside pressure from limited demand and healthier stock levels.
• Russia’s Energy Ministry proposes to extend the gasoline export ban into Sept and Oct, according to RBC.
  • Brent SEP 24 down 0.3% at 83.5$/bbl
  • WTI AUG 24 down 0.3% at 80.54$/bbl
  • Brent SEP 24-OCT 24 unchanged at 0.93$/bbl
  • Brent DEC 24-DEC 25 down 0.09$/bbl at 4.58$/bbl
  • US gasoline crack down 0.2$/bbl at 22.73$/bbl
  • US ULSD crack down 0$/bbl at 22.68$/bbl