Oil Markets Drift Lower in Reaction to EIA Inventory Builds

Crude markets have drifted off from earlier gains but with the prompt Brent spread back at parity with support from shipping risks after an unexpected build in US weekly EIA crude inventories. Diesel and gasoline cracks spreads are edging lower with slightly larger than expected inventory builds.

• Crude inventories showed an unexpected build with production rising to a new record of 13.3mb/d and with higher imports to offset a slight recovery in exports and a bigger than expected increase in refinery runs. Cushing inventories rose to the highest since August.
• Gasoline and distillates both built as expected. Gasoline stocks rose with an increase in production and with another drop in implied demand to offset a drop in imports. Distillates built with a drop in exports and despite lower production and a small recovery in demand on the week.
• Four week distillates demand has fallen further below the previous five year range but gasoline demand has edged slightly higher above levels seen this time last year.
  • Brent FEB 24 up 0.7% at 79.82$/bbl
  • WTI FEB 24 up 0.8% at 74.56$/bbl
  • WTI-Brent down -0.1$/bbl at -5.25$/bbl
  • WTI FEB 24-MAR 24 up 0.07$/bbl at -0.2$/bbl
  • WTI JUN 24-DEC 24 up 0.18$/bbl at 1.55$/bbl
  • US gasoline crack down -0.7$/bbl at 17.76$/bbl
  • US ULSD crack down -1.4$/bbl at 39.3$/bbl