Oil Product Margins Recover Slightly After EIA Data

Crude markets remain relatively unchanged following the US EIA inventory data with focus still on wider financial market concerns. Gasoline and diesel crack spreads are edging back up to recovery some earlier losses after the stock draws and higher gasoline demand.

• Crude inventories built more than expected despite a big increase in crude exports and larger than expected recovery in refinery utilisation with a big change in the unaccounted oil adjustment. Crude production was unchanged and imports are still near the lower end of the five year range.
• Refinery utilisation was boosted by Gulf Coast refineries coming towards the end of maintenance with rates up to the highest since December at 89.1% but East Coast rates are the lowest in a year.
• Distillate and gasoline stocks drew as expected with higher exports. Production remains low despite the rise in refinery runs. Gasoline four week average implied demand continued to increase but distillate demand dropped further below the five year range.
  • Brent MAY 23 down -4% at 74.35$/bbl
  • WTI APR 23 down -4.3% at 68.28$/bbl
  • WTI-Brent down -0.06$/bbl at -5.92$/bbl
  • WTI APR 23-MAY 23 up 0.02$/bbl at -0.14$/bbl
  • WTI JUN 23-DEC 23 down -0.42$/bbl at 1.15$/bbl
  • WTI DEC 23-DEC 24 down -0.8$/bbl at 2.31$/bbl
  • US gasoline crack down -0.6$/bbl at 35.37$/bbl
  • US ULSD crack down -0.7$/bbl at 42.34$/bbl