Notwithstanding the compliance with production cuts, it appears to be pretty clear that they are not likely to impact supplies in the near term. Moreover, Russia, one of the champions of the cuts, has increased exports saying that the commitment was only to cut production.
However, the rhetoric on Iran is still going strong.
Crude prices don’t look like heading south any time soon for now.
The Naphtha market eased considerably as supplies appeared to be not so tight after all for the prompt month. The high crude prices also led to further easing.
The February MOPJ crack is valued at around $ 2.5 / bbl and March at $ 1.90 / bbl. The Singapore crack for February is valued at $ 1.1 /bbl for February.
The rally in the gasoline market was short lived as the crack gave back almost everything it gained yesterday. The February crack is now valued at $ 13.2 cents /bbl. The March crack is valued at $ 12.80/bbl.
Traders attributed this dramatic drop to the rise in crude prices.
The gasoil crack for February slipped today notwithstanding a dip in Singapore stocks. Traders are reported to be unwinding stocks in storage due to a narrowing contango. The February crack is valued at $11.60 /bbl with the Regrade at + $ 0.10 /bbl.
Fuel Oil stocks in Singapore rose by close to 2 Million barrels last week impacting prices further along with high crude oil prices. February is valued at – $ 4.8 /bbl which is marginally better than yesterday and March at -$ 5.0/bbl.
The fuel oil crack has lost value of $3.5 /bbl in the last 3 weeks, a fact that would be worrisome for refiners.
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