Crude Oil
U.S. crude futures gained almost 1% on Tuesday after flooding throughout the Midwest constrained crude flow from the main U.S. storage hub in Cushing, Oklahoma. WTI futures settled at $ 59.14 /bbl, up 51 cents from Friday’s close. Brent, settled flat at $ 70.11/bbl.
Flooded areas of Arkansas and Oklahoma were bracing for more rain that will feed the already swollen Arkansas River. Up to 19 inches (48 cm) of rain have fallen so far in parts of Oklahoma over the month of May, the National Weather Service said, with more on the way.
Prices continue to stay caught between fears of slowed economic growth and expectations that OPEC and its allies will extend their six-month deal to curb production.
Weekly inventory data this week has been delayed a day due to Monday’s Memorial Day holiday.
Naphtha
Asia’s naphtha crack hit a three-session high of $16.78 a tonne on Tuesday but it was still about 85 percent lower than a year ago, when it traded at over $110 a tonne, as current supplies far outpace demand.
Japan’s Idemitsu bought two cargoes of naphtha this week for first-half July delivery at premiums within the low to mid-single digit level a tonne to Japan quotes on a C&F basis. The petrochemical maker had on May 13 bought the fuel for second-half June delivery at a low single-digit premium a tonne.
The June crack is marginally lower at – $6.75 /bbl;
Gasoline
No fresh news on the Gasoline market.
The June crack is lower at 4.90 /bbl
Click Here for a graphical depiction of Global Gasoline stocks by region.
Distillates
Cash differentials for 10ppm gasoil narrowed their discounts to 4 cents a barrel to Singapore quotes on Tuesday, from a 7-cent discount on Monday.
The gasoil supply in Asia is expected to climb in the near term as refineries shut for spring turnarounds return, while China continues to bring more barrels to the market with larger export quotas. China’s diesel exports in April surged 43% from a year earlier. Earlier this month, the country issued a second batch of refined fuel export quotas for 2019 that is 30% higher than the first batch. But some refinery maintenance in Japan and India over June might help boost the overall refining margins.
Cash discounts for jet fuel were at 32 cents a barrel to Singapore quotes, compared with a discount of 31 cents in the previous session.
The June crack for 500 ppm Gasoil is lower at $ 13.75 /bbl with the 10 ppm crack at 14.45 / bbl. The regrade is at -$ 0.50 /bbl
Click Here for a graphical depiction of Global Distillate stocks by region.
Fuel Oil
Cash premiums for 380-centistoke (cst) high-sulphur fuel oil (HSFO) slipped on Tuesday, falling away from a more than two-month high in the previous session, and ending a 11-session streak of consecutive gains.
380-cst cash premiums fell to 79 cents per tonne to Singapore quotes, down from a premium of $1.30 per tonne in the previous session. Cash premiums of the fuel have been buoyed by expectations of tightening supplies, amid rising seasonal demand in the Middle East, and improved buying interest for spot fuel oil cargoes in the Singapore trading window.
The June180 cst crack is lower at – $ 2.50 / bbl with the visco spread at $ 2.10 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
Hedge Recommendations
Nothing fresh to report
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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.