Happy New Year
Welcome to 2017. This year, like almost every one, promises to be one of ups and downs. May you ride the climbs and stay smoothly out of the way of crashes this year!
Over the last day of the year and the first day this morning, crude prices are rising with the enthusiasm of a market looking forward to a smoothly implemented production cut. The Brent front month, which settled at $ 56.82 /bbl yesterday is up 28 cents at the time of writing this. This is the March future which has become the front month today.
The Naphtha physical crack for January is showing a value of +$ 0.30 /bbl. This appears to be on the strength of the gasoline market. While there appears to be demand from end users of naphtha, it seems to be limited by price.
The gasoline crack for January appears to be all around the place being valued anywhere between $ 13.5 and $14.0 / bbl. We expect to see more clarity emerge during the day.
The gasoil crack for January remains steady to marginally stronger at close to $ 12.0 / bbl. However, the regrade for January has slipped to $ 1.05 / bbl
The market continues to watch this market warily. While there appears to be demand, arrival of stocks could suddenly depress the market. The crack was around -$1.50 /bbl for January and -$2.3 for February.
We would wait till the middle of next week to develop any further opinion on this product.
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