Oil Markets Steady After Big Crude Stock Draw and Fall in Distillate Demand

Crude and products remain largely unchanged after a big crude draw of -12.58mbbls driven by a bigger than expected increase in refinery utilisation and another increase in exports. Oil demand concerns are raised after a fall in the gasoline and distillates product supplied data.

• The crude draw is the biggest since June2019 with net crude and product exports up to a record high. US production remained unchanged, and imports fell back after pushing higher the previous week. Cushing stocks fell further below the five year range to the lowest since July.
• Distillate and gasoline stocks gained on the back of the high refinery run rates and despite strong exports. Central Atlantic (PADD1B) stocks fell to the lowest since October 2012.
• The four week implied product demand for gasoline fell in line with the seasonal trend while distillate demand fell back below the bottom of the five year range.
  • Brent FEB 23 up 3.1% at 86.83$/bbl
  • WTI JAN 23 up 2.9% at 80.45$/bbl
  • Gasoil DEC 22 up 3.5% at 923.5$/mt
  • WTI-Brent down -0.22$/bbl at -5.02$/bbl
  • WTI JAN 23-FEB 23 unchanged at -0.08$/bbl
  • WTI JUN 23-DEC 23 up 0.38$/bbl at 2.63$/bbl
  • US gasoline crack up 0.1$/bbl at 17.94$/bbl
  • US ULSD crack up 0.6$/bbl at 58.81$/bbl