Crude oil continued to move lower yesterday and then tumbled further after API announced a build of over 9 million barrels of crude stocks.
Brent contract settled at $48.14 after hitting a low of $ 47.74 during the day. WTI settled at $ 46.67 / bbl.
If the official EIA data (considered by many to be more reliable) reaffirms the API data, we could well see multi month lows in the next few days.
Naphtha has strengthened with the supply issues related to gasoline exacerbating the condition caused by petchem demand. The crack appears to be trading firmly above Dubai for the rest of the quarter.
The gasoline market is firmer in light of the damage to the Colonial pipeline, which is expected to be down for a month. Amid already tight supplies in the US, this event should lead to global strengthening of the crack. In Asia the November crack is showing a value of $ 13.10 /bbl for November
Middle distillate cracks are extremely strong in the front with gasoil quoting at around $ 14.00 / bbl for November. However, the numbers seem to be all over the place. Forward cracks too appear to be strong with December quoting in excess of $ 13 / bbl.
Jet is showing signs of further weakening as supply from India is flooding the market currently. The regrade for November is -$0.65 / bbl and is weak further down the curve as well.
The fuel oil crack continues to be strong with December showing values around -$2.5/bbl. The time spreads are strongly backwardated for the first three months. The viscosity spread (between 180 cst and 380 cst) has widened to over $ 8 / ton in the first two months reflecting the tightness in availability of cutter stocks as well as the strength of gasoil.
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.