OIL: Oil Markets Gains on US Crude Draw and Small Increase in Fuel Demand

Crude markets and product crack spreads gain ground after the latest weekly EIA petroleum data showing a slight recovery in fuel demand and a small draw in crude stocks as expected.

• The crude stocks draw was roughly in line with expectation with an increase in refinery runs and recovery in exports after the big fall last week. Production was once again unchanged at 13.1mbpd while imports edged slightly higher. Refinery utilisation as expected regained the losses seen the previous week back to 88.5% with East Coast back above 90% for the first time since Jan.
• Gasoline stocks showed a small, unexpected build with an increase in production and drop in exports set against higher implied demand and a drop in imports. Four week implied demand is still below all recent years except 2020 despite edging higher on the week.
• Distillates stocks also gained with an increase in production and another drop in implied demand to offset an increase in exports. Despite the weekly decline, the four week implied distillates demand however regained some ground but remains below seasonal normal levels.
  • Brent JUL 24 up 0.1% at 83.22$/bbl
  • WTI JUN 24 up 0.2% at 78.55$/bbl
  • WTI JUN 24-JUL 24 up 0.05$/bbl at 0.37$/bbl
  • WTI JUN 24-DEC 24 up 0.28$/bbl at 2.82$/bbl
  • US gasoline crack down 1$/bbl at 27.2$/bbl
  • US ULSD crack down 0$/bbl at 24.98$/bbl