Crude Oil

Crude prices fell like a ton of bricks on Monday just after posing the strongest quarter growth in a long long time. The December Brent contract, which becomes the front month today, closed 67 cents lower to settle at $56.12 /bbl. WTI lost $ 1.08 to settle at $50.59 /bbl.


The fall in prices was attributed as a reaction to both a growth in drilling activities in the US as well as an increase in production.


The naphtha crack has slipped further and continues to weaken. While analysts still see good demand, they believe the lack of bidding interest was due to a week long holiday in Korea resulting in absence of buyers.

The October crack  is valued lower at $ 2.00 /bbl


Gasoline cracks have weakened further even as the Platts Asian Trading Window saw eight gasoline cash trades which was the highest number of deals in gasoline in a single session since September 21.

The October 92 Ron crack is valued lower today at $ 10.50 /bbl.


The distillate cracks have fallen sharply today even though traders expect supplies to tighten in 4Q2017 as demand for gasoil typically spikes in the winter months aided by its usage as heating oil in many parts of the world.

The October crack is considerably lower at $12.90 /bbl.  The regrade has also moved sharply to -$ 0.10 /bbl

Fuel Oil

Fuel Oil cracks have improved marginally even as the Asian fuel oil market are little changed from Monday due to muted trading activity. Physical buyers, particularly of bunker fuels, may be holding back in anticipation of lower fuel costs amid falling crude oil prices.

The October crack is slightly higher at -$2.45 / bbl. The visco spread is unchanged at $ 0.60 /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

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