1 Mar 2017
oil-barrel

Crude Oil

After staying in negative territory for most of the trading day, Crude spiked in the last half hour of trading to close almost square for the day.  WTI lost 4 cents to settle at $ 54.01 /bbl.  The Brent May Future, which becomes the front month today, settled 1 cent lower at $ 56.51 / bbl
The constant ups and downs of prices may soon end up causing position fatigue.  Time spreads which had narrowed hitherto have now slowly started moving out again.

Data released by API showed a build of 2.5 million barrels in crude and a build of 1.8 million barrels in gasoline. Distillates drew by 3.7 million barrels which was a bit of a surprise to the market.  However, the data is regarded as bearish for gasoline and crude.

We await DOE data which comes today.

Naphtha

The naphtha crack held firm today even as the physical crack settled higher.  The March MOPJ crack is valued at $ 1.50 / bbl.  The Singapore crack for March is valued at + $ 0.40 /bbl.

Gasoline 

The gasoline crack continued to tank in the face of incessantly building inventories.  The market is even more uncertain because yesterday marked the last day that winter grade gasoline could be delivered in the US.  As a result the March crack is valued somewhere around $ 11/bbl. with a lot of uncertainty.

Middle Distillates

Gasoil too continued to weaken.  Furthermore, the differential between 10ppm Gasoil and 500 ppm gasoil also narrowed suggesting that China’s exports have rebounded since a low number is January.  The March crack is valued at  $12.11 / bbl .  The regrade continues at -$0.75 /bbl.

Fuel Oil

Fuel oil continued to stay firm as markets keep expecting a trading play. The March crack is valued   -$ 2.85/bbl and April around -$ 3.25 /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

 

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