Crude Oil
Crude dropped significantly yesterday. Brent lost more than one dollar per barrel ($ 1.28) to settle at $ 55.08 / bbl. WTI lost $ 1.22 cents to settle at $ 52.61 /bbl.
The immediate reason for the drop was given to be a Reuters report which suggested that Russia had failed to deliver on its promised cut of 300 Kb for the second month in a row. A stronger US dollar (now pushing $ 1.05 against the EUR)
The fact that these cuts have not managed to impact supplies or force people to look for crude which isn’t there is pretty much apparent for now.
Any backwardation on the crude curves has pretty much vanished for now. Our trade recommendation of sell April buy December would have been pretty much in the money.
Naphtha
The Naphtha physical crack settled at still lower levels yesterday. The March MOPJ crack is valued at just $ 0.20 / bbl. The Singapore crack for March is valued at – $ 1.70 /bbl.
Gasoline
Gasoline too continued to weaken. The March crack is valued at $ 9.05 /bbl. The massive contango of April to March suggests that it may soon be viable to store gasoline for the driving season or even further.
Middle Distillates
Gasoil finally felt a bit of the impact that hit the other products yesterday. The March crack is valued at $11.6 / bbl . The regrade improved to -$ 0.90 /bbl.
Fuel Oil
Fuel oil stayed weak in the window yesterday. However, this did not affect cracks too much. The March crack is valued -$ 4.2/bbl and April around -$ 4.1/bbl
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