OIL: Crude Ticks Down After EIA Shows Unexpected US Crude Build

Crude markets are ticking slightly lower after an unexpected build in US crude inventories according to the latest EIA weekly petroleum data.  Diesel cracks have edged lower with a fresh dip in implied demand, but gasoline cracks are holding onto small earlier gains.

• Crude stocks showed a small build counter to expectation of a draw primarily from the Gulf Coast and West Coast with an increase in both imports and exports. Refinery runs increased again with utilisation up over 95% and the highest since June 2023 with crude runs the highest since Dec 2019. Midwest refineries are now operating at 99.9% capacity. Production was again unchanged on the week while the data showed another significant adjustment figure.
• Gasoline inventories build as expected with a drop in production and imports offset by lower weekly implied demand.  Imports fell by the most in more than a year. The four week average implied demand however edged higher to continue the recovery since the mid April low.
• Distillates stocks also built with a decline in implied demand set against a rise in exports on the week. Four week implied demand continues to disappoint with a pull back after gains seen in previous weeks.
  • Brent AUG 24 up 0.2% at 77.65$/bbl
  • WTI JUL 24 up 0.1% at 73.35$/bbl
  • WTI-Brent down 0.07$/bbl at -4.51$/bbl
  • Brent AUG 24-SEP 24 up 0.04$/bbl at 0.29$/bbl
  • Brent DEC 24-DEC 25 up 0.05$/bbl at 3$/bbl
  • US gasoline crack up 0.1$/bbl at 25.05$/bbl
  • US ULSD crack down 0.1$/bbl at 22.87$/bbl