Crude Builds But Diesel Tightens
Today’s EIA report looked bearish on crude and bullish on products, exactly the split traders need to watch. Commercial crude stocks jumped 17.4 million barrels to 424.4 million, while the SPR fell 6.1 million to 298.7 million. Distillate inventories stayed near 107.1 million barrels, roughly 12% below the five-year average, while exports ran near 1.94 million b/d and refinery utilization held around 96.2%. Against this backdrop, the heating-oil crack reached about $98.16/bbl and the weekly 3:2:1 remained near $65.4/bbl. August ICE gasoil expired at +$68.25/mt over September, down 36.7% on the day, yet September gasoil itself rose to about $1,253/mt and Sep/Dec backwardation widened near +$167/mt. The expiry squeeze faded. The product tightness did not.
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