Oil Markets Dip on US Crude Stocks Build and Soft Distillates Demand

Crude markets dipped slightly in reaction to another crude build as expected in the weekly EIA petroleum data, while distillates demand remains weak and refinery utilisation shows signs of recovery. Diesel cracks also fall in reaction to the lower demand, but gasoline margins are finding more support.

• Crude stocks as expected build again this week with production holding steady at record highs. Imports and exports both dipped slightly on the week while refinery utilisation edged higher but remains at low levels following planned and unplanned outages in the month. Refinery utilisation increased by 0.9% to hold above 80% as units restart following outages. Slow injections continue into the US SPR with another 743kbbls added this week. Cushing stocks remain low despite further gains this week.
• Gasoline stocks drew with an increase in production offset by an increase in demand while imports and export both fell in the week. Four week implied demand edged higher roughly in line with the seasonal trend.
• Distillates stocks showed a smaller than expected draw as production increased and implied demand fell. Four week implied demand remains below the previous five year range for the time of year.
  • Brent APR 24 up 0.1% at 83.77$/bbl
  • Brent MAY 24 down -0.1% at 82.56$/bbl
  • WTI APR 24 up 0.1% at 78.94$/bbl
  • Gasoil MAR 24 down -2.5% at 825$/mt
  • WTI-Brent down -0.1$/bbl at -4.86$/bbl
  • WTI APR 24-MAY 24 up 0.07$/bbl at 0.71$/bbl
  • WTI JUN 24-DEC 24 unchanged at 3.73$/bbl
  • US gasoline crack down -0.8$/bbl at 29.34$/bbl
  • US ULSD crack down -2$/bbl at 32.28$/bbl