Crude Oil
Crude prices rose steadily in the New York day yesterday. Brent settled $ 1.20 cents higher at $57.00 /bbl. WTI settled 81 cents higher at $ 50.79 /bbl.
Traders in the US reacted extremely positively to statements coming out of Russia that both Saudi and Russia are committed to control supply and are likely to do what it takes even if it means extending / deepening production cuts. While no commitments were made, the Saudi spokesman said they were “flexible” regarding Moscow’s suggestion to prolong the pact until the end of 2018.
Naphtha
The physical naphtha rose over $100 / MT and was at its highest since September 25. Premiums for physical cargos appear to be higher this week as compared to before.
The paper cracks have jumped up and the October crack is valued at $ 2.95 /bbl
Gasoline
Gasoline cracks are higher as well today notwithstanding a stock build of close to a million barrels. Singapore’s onshore light distillates stocks, which comprise mostly gasoline and blendstock for the fuel, rose by 9 % to reach a five-week high of 11.9 million barrels in the week to October 4.
The October 92 Ron crack is valued at round $ 12.05 /bbl.
Distillates
The distillate cracks have slipped slightly as unexpected supplies emerge from India even though the monsoon season has officially ended and demand is expected to pick up. Indian Oil Corp has offered a rare term lifting of eight gasoil cargoes of 14,700 MT each of 0.2 % sulphur and 1,100 MT each of 50 ppm sulphur for loading from Haldia from late October 2017 to March 2018.
The October crack is valued today at $13.10 /bbl. The regrade is back in negative territory, valued at -$ 0.15 /bbl
Fuel Oil
Fuel Oil Cracks are valued slightly slower even as Singapore inventories fell to a total of 3.37 million MT in the week to October 4, down 3 % from the previous week. Also, in the Platts Asian Trading Window, eleven cargoes of 380 cst totaling 280,000 MT was traded with Hin Leong and BP purchasing 140,000 MT each.
The October crack is valued at -$2.80 / bbl while the visco spread is unchanged at $ 0.55 /bbl.
About this blog
This blog post attempts to give a top level summary of the Singapore market goings on to a person who seeks to obtain a directional sense of the market on a daily basis.
Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity