Crude Oil
Oil prices edged up on Wednesday on positive economic comments from U.S. Federal Reserve Chair Jerome Powell. Brent crude futures rose 31 cents to settle at $62.37 a barrel. WTI crude rose 32 cents to settle at $57.12 a barrel.
Powell said the U.S. economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.
OPEC also aid it saw no signs of global recession and rival U.S. shale oil production could grow by much less than expected in 2020. OPEC Secretary General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident the United States and China would reach a trade deal.
The U.S. Energy Information Administration (EIA), however, projected U.S. oil output hit a record of 13 million bpd this month and will grow more than expected in 2019 and 2020.
U.S. President Donald Trump, meanwhile, said on Tuesday that Washington and Beijing were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony.
api data
U.S. crude inventories fell by 541 kb compared to analysts’ expectations for a increase of 1.0 million barrels. However products stocks built in the face of expectations of declines. Official weekly EIA data is due at 11:00 a.m. EST (1600 GMT) on Thursday.
Naphtha
Asia’s naphtha crack edged up to hover around a one-week high of $74.03 a tonne as demand returned following a temporary lull from South Korea, Asia’s top importing country..
The November crack is higher at – $ 3.35 / bbl.
The December crack is at – $ 3.20 / bbl.
Gasoline
Asia’s gasoline crack fell from a near six-week low to reach a three-session low of $10.02 a barrel in line with weaker crude prices.
Light distillate stocks in Fujairah dropped to 5.6 million barrels, a new low for the year.
The November crack is higher at $ 9.825 /bbl
The December crack is at $ 7.95 /bbl
Click Here for a graphical depiction of Global Gasoline stocks by region.
Distillates
Cash premiums for gasoil with 10 ppm sulphur content fell for a seventh consecutive session to 30 cents per barrel to Singapore quotes, a level not seen since Sept. 25. They were at a premium of 39 cents a barrel on Tuesday.
The prompt-month time spread for 10 ppm gasoil on Wednesday traded at a premium of 15 cents a barrel, their narrowest since Sept. 13, Refinitiv Eikon data showed. The spread was at 39 cents per barrel on Tuesday.
Cash differentials for jet fuel were at a discount of 59 cents per barrel to Singapore quotes on Wednesday, compared with a 56-cent discount in the previous session. The physical jet fuel market in the Singapore trading window remained muted with no bids or deals on Wednesday.
Middle distillate inventories in Fujairah rose to 3.23 million barrels, a new high for the year.
The November crack for 500 ppm Gasoil is higher at $ 12.60 /bbl with the 10 ppm crack at $ 13.60 / bbl. The regrade is at $ 0.60 /bbl
The December crack for 500 ppm Gasoil is at $ 13.85 /bbl with the 10 ppm crack at $ 14.80 / bbl. The regrade is at $ 1.20 /bbl
Click Here for a graphical depiction of Global Distillate stocks by region.
Fuel Oil
Cash premiums for Asia’s 380-cst high-sulphur fuel oil (HSFO) fell to a more than five-month low on Wednesday, as demand for the high sulphur fuel receded ahead of the stricter rules starting less that two months from now.
380-cst cash premiums fell to $1.86 per tonne above Singapore quotes, down from $10.80 per tonne in the previous session and from $19.08 a tonne at the start of the week.
Reflecting the weaker demand for HSFO bunkers, Singapore sales of the mainstay 380-cst HSFO bunker fuel in October fell to an at least seven-year low, or as far as available data goes, official data showed on Wednesday.
Fuel Oil stocks in Fujairah fell by 313 kb to 14.02 million barrels.
The November 180 cst crack is lower at -$ 26.40 / bbl with the visco spread at $ 0.60 /bbl.
The December 180 cst crack is at -$ 24.00 / bbl with the visco spread at $ 1.75 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
Hedge Recommendations
No fresh action today.
Hedge recommendations are essentially made for refiners. These are not trading positions as such. The rationale of these positions is to lock in extraordinary levels for the refiner.
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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.