31 Jan 2017
oil-barrel

Crude Oil

With very little fresh news to move markets, Brent eased a bit more by $ 0.29 to settle at $ 55.23/bbl and WTI went down by  $ 0.54 to settle at $ 52.63 / bbl

 

We present below a couple of  extracts from daily and weekly technical charts (source Reuters) of the first Brent future.

                      
The daily chart (on the left) shows a clean gap from the day the announcement to cut production was made.  Technical analysts suggest that such gaps always tend to be filled before further upticks happen.
The last few candles on the weekly chart (on the right) show candles with a long spine (indicating a large difference between high and low) and a small body (indicating a small difference between open and close.  Such candles are referred to as ‘spinning tops’.

They reflect uncertainty over direction of market with nearly equal tugs in both directions.  Normally, once this impasse is broken, one sees a huge move in the direction of the break.
 

Naphtha

Singapore markets were closed yesterday. The February crack is valued at around $1.90 / bbl and March at $ 0.90 / bbl.

Gasoline 

The February crack is still at $ 12.75 cents /bbl.

Middle Distillates

The gasoil crack for February is marginally higher $11.75 /bbl. The Regrade remains at – $ 0.20 /bbl.

Fuel Oil

Fuel Oil seems to have continued its downward slide. February is valued at – $ 3.60 /bbl and March at -$ 3.90/bbl.  There could be a drop in demand for Fuel Oil post the Chinese New Year.

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

 

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