Product Cracks Fall After Drop in EIA Implied Demand

Crude markets remain largely unchanged in response to the latest EIA inventory data after reversing direction back negative on the day ahead of the data. Diesel and gasoline cracks spreads are falling in response to a drop in the implied demand.

• Crude stocks showed a larger than expected build with production holding at record levels despite ongoing strong exports and a drop in imports. Cushing stocks also showed an unexpected build to take inventories back within the previous five year range. Refinery runs rose more than expected up to the highest since mid September.
• Distillates stocks rose on the week driven by a big drop in distillates implied demand and higher production despite higher exports. Four week average implied demand is back below the previous five year range.
• Gasoline stocks also built with implied demand drifting lower in line with the seasonal trend and despite higher exports and lower imports.
  • Brent JAN 24 down -0.5% at 81.24$/bbl
  • Brent FEB 24 down -0.7% at 80.93$/bbl
  • WTI JAN 24 down -0.7% at 75.91$/bbl
  • Brent JAN 24-FEB 24 up 0.02$/bbl at 0.23$/bbl
  • Brent FEB 24-MAR 24 down -0.02$/bbl at 0.22$/bbl
  • Brent JUN 24-DEC 24 down -0.17$/bbl at 1.81$/bbl
  • US gasoline crack down -0.6$/bbl at 15.27$/bbl
  • US ULSD crack down -1.7$/bbl at 39.16$/bbl