Oil Markets Fall on US Crude Stocks Draw and Decline in Product Demand

Crude falls back negative on the day to reverse earlier gains after a larger than expected build in crude inventories in the latest weekly EIA petroleum data. Gasoline and diesel cracks spreads also fell after a drop in implied demand.

• Crude inventories build more than expected and greater than showed in the API data driven by a further drop in refinery runs to offset lower imports and a recovery in exports. Crude production held at record levels while the adjustment figure showed a significant positive adjustment. Refinery utilisation fell for the sixth straight week to the lowest since Dec 2022.
• Gasoline inventories as expected drew with a rise in exports and drop in imports. Production saw an unexpected rise while four week implied demand showed a counter seasonal fall after the gains seen the previous week.
• Distillates stocks also showed a draw with a drop in production and despite a drop in exports and lower implied demand. Weekly demand fell to keep the four week average below the previous five year range for the time of year.
  • Brent APR 24 down -0.5% at 82.33$/bbl
  • WTI MAR 24 down -0.7% at 77.32$/bbl
  • WTI-Brent down -0.14$/bbl at -5.3$/bbl
  • WTI MAR 24-APR 24 down -0.03$/bbl at 0.28$/bbl
  • WTI JUN 24-DEC 24 down -0.12$/bbl at 2.82$/bbl
  • US gasoline crack down -1.3$/bbl at 21.66$/bbl
  • US ULSD crack down -1.9$/bbl at 42.1$/bbl