Oil Product Cracks Fall on Large EIA Stock Builds

Crude edges lower and cracks spreads fall after a bigger than expected draw in US crude inventories and large gasoline and distillates stocks builds. The move comes as crude weighs supply risks from the Middle East and Libya against strong non-OPEC supply and estimates of slowing global demand growth in 2024 compared to 2023.

• Crude stocks drew more than expected driven by a large correction in exports back above 5mb/d, a drop in production from the record high levels and despite an increase in exports. Gulf Coast inventories fell to the lowest since September amid efforts to minimize year end tax. Cushing stocks rose again to the highest since July.
• Distillates and gasoline stocks showed significant builds driven by a drop in the weekly implied demand data. The gasoline build was assisted by a drop in production.
• Four week gasoline implied demand dropped during the holiday period with the EIA data reflecting expectations from OPIS and GasBuddy. Distillates four week average demand fell back below the lower end of the previous five year range for the time of year.
  • Brent MAR 24 down -1.3% at 77.27$/bbl
  • WTI FEB 24 down -1.2% at 71.81$/bbl
  • WTI-Brent up 0.04$/bbl at -5.28$/bbl
  • WTI FEB 24-MAR 24 up 0.01$/bbl at -0.18$/bbl
  • WTI JUN 24-DEC 24 down -0.08$/bbl at 1.7$/bbl
  • US gasoline crack down -0.8$/bbl at 16.67$/bbl
  • US ULSD crack up 0.2$/bbl at 36.61$/bbl