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.
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.
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 -$0.75 /bbl.
Fuel oil continued to stay firm as markets keep expecting a trading play. The March crack is valued -$ 2.85/bbl and April around -$ 3.25 /bbl.
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Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity