Crude market initially rallied before pulling back after an unexpected draw in US crude inventories reported in the updated EIA weekly petroleum data although only slightly larger than reported by the API yesterday. Diesel and gasoline cracks spreads are relatively unchanged with support from a drop in inventory levels and recovery in implied demand. 

• The crude stock draw, which more than offset the unexpected build the week before, was driven by a recovery in crude exports and rebound in refinery runs. Refinery utilisation rebounded more than expected back up to 93.5%.  Crude production was unchanged at 13.2mbpd. The adjustment figure also saw another significant change on the week.
• Gasoline stocks drew with an increase in implied demand offsetting the increase in production. An increase in exports was matched by an increase in imports.
• Distillates stocks also fell due to both an increase in implied demand and higher exports to offset higher production. 
• Four week implied demand of both gasoline and distillates resumed the recovery trend after stalling over the last few weeks.
  • Brent SEP 24 up 0.1% at 86.31$/bbl
  • WTI AUG 24 up 0.1% at 82.89$/bbl
  • Brent SEP 24-OCT 24 down 0.03$/bbl at 0.77$/bbl
  • Brent DEC 24-DEC 25 down 0.02$/bbl at 5.12$/bbl
  • US gasoline crack down 0.5$/bbl at 24.55$/bbl
  • US ULSD crack down 0.9$/bbl at 26.58$/bbl