Crude Oil
Although crude prices closed lower on Friday, both Brent and WTI have risen by more than 2 % last week, which is now the fifth consecutive increase. Brent fell 41 cents to settle at $63.52 /bbl while WTI lost 43 cents to settle at $56.74 /bbl.
Earlier last week, Brent rose to $64.65 /bbl, its highest since June 2015, and WTI touched $57.92 /bbl, its highest since July 2015.
Technical Analysis
Technical indicators applied to the Brent daily and weekly charts are suggesting a “Buy’ thereby implying that the bull run will continue. To that end, both the short and long term moving averages are signalling an upward trend. Confirming this direction are other commonly used indicators like the RSI(14), MACD(12,26) and the CCI(14).
Resistance levels are $64.05 /bbl, $64.65 /bbl and $65.00 /bbl while the Supports are at $63.15 /bbl, $62.80 /bbl and $62.20 /bbl.
Naphtha
Asia’s physical naphtha crack touched a 22-month high of $130.88 /MT on Friday following a string of purchases that resulted in at least 240,000 MT of the fuel being traded for second-half December delivery in the last four days.
The paper crack for November is up at $ 4.20 /bbl. December is valued at $ 4.00 /bbl
Gasoline
Gasoline cracks have risen on the back of a very active Platts Trading Window which saw seven gasoline cash deals being concluded. Friday’s trades makes it the highest number of trades in a single session since November 2 earlier this month.
The November 92 Ron paper crack has moved up considerably to be valued at $ 12.60 /bbl. The December crack is at $ 11.90 /bbl
Distillates
Distillate cracks remains stable even as stocks held independently at tanks in the Amsterdam-Rotterdam-Antwerp (ARA) storage and refining hub slipped to 2.056 million MT, down 5 % from the previous week and a considerable 30 % lower from last year.
The paper crack is valued unchanged at $ 11.50 /bbl. December too remains at $12.05 /bbl. While the November regrade has fallen slightly to $ 1.50 /bbl, the December regrade is also a bit lower at $ 1.45 /bbl
Fuel Oil
Fuel cracks are valued lower today in the wake of rising inventories in the ARA storage and refining hub. Fuel oil stocks in ARA rose for a third straight week, up 4 % to reach 1.413 million MT in the week to November 9. Compared with last year, ARA fuel oil inventories are up a staggering 122 % and are well above the five-year average of 895,000 MT for this time of the year. Limited fuel oil exports have contributed to the buildup in inventories.
The November 180 cst crack is lower -$2.85 / bbl. The visco spread is unchanged at $ 0.45 /bbl.
The December 180 cst crack has slipped to -2.30 /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