Crude Oil
Crude Oil continued its bullish run yesterday scaling greater highs with next to no news. Brent closed 46 cents higher at $60.90/bbl while WTI settled 25 cents higher at $ 54.15 /bbl.
We stand by our recommendation to sell Brent Jan / Feb / March futures above $ 60 /bbl.
In other news, Iraq has increased its exports from its southern fields to 3.45 mb/d to make up for the lost production from the Kirkuk fields.
Naphtha
Whilst the physical naphtha market continues to stay strong on the back of sustained demand for more cargoes, the paper crack has fallen slightly due to the recent spike in crude prices. The outlook continues to be bullish as the strong demand for petrochemicals is resulting in crackers (whose primary feed is naphtha) across various geographies being run at high rates.
The paper crack for November is valued lower at $ 3.40 /bbl.
Gasoline
The physical gasoline crack settled unchanged at $10.06 /bbl amid a stable market. The Platts Asian Trading Window was also quiet with no cash deals getting done.
The November 92 Ron paper crack is lower at $ 10.90 /bbl.
Distillates
Distillate cracks continue to remain under pressure as more spot supplies are seen out of India. Both Indian Oil Corp (IOCL) and Bharat Petroleum Corp Ltd (BPCL) continue to offer diesel cargoes for November loading.
The November gasoil crack is lower at $ 12.75 /bbl today. The regrade has moved up to $ 0.20 /bbl.
Fuel Oil
Fuel Oil cracks have strengthened amidst an active Platts Asian Trading Window which witnessed nine cargo trades comprising 140,000 MT of 380-cst grade and 40,000 MT of 180-cst grade. Monday’s deal volume was the highest since October 5 earlier when 280,000 MT of fuel oil was traded.
The November 180 cst crack is valued higher at -$2.40 / bbl. The visco spread is unchanged at $ 0.75 /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