Crude prices finally took a breather yesterday after 4 consecutive up days. Brent futures settled at $ 53.12 / bbl, 41 cents lower. WTI declined by 36 cents to $ 50.24 /bbl.
The markets appear to have been somewhat relieved by the resumption of crude pumping in Libya. However, the $ 53 /bbl level, which we have mentioned as a support, was never seriously tested, indicating that this may be more of a correction than the resumption of the downtrend.
API data today should give a little more direction to markets.
In the meanwhile, CFTC data sprang a surprise when it revealed the Funds have cut net long positions significantly. The net long positions on Brent contracts stood at nearly 373,000 lots, the first time since November last year that they have fallen below 400,000 lots.
Gasoline cracks have become stronger as well. The FCC at Abu Dhabi’s Ruwais refinery seems to still have problems following a fire there and is now not expected to resume operations till 2018. April is valued at $ 12.80 /bbl. The May – June spread is firm at 50 cents.
The Gasoil crack continues to improve. The crack for April is valued at $ 11.6 / bbl. The regrade however, is coming off once again with April at -$ 0.55 /bbl and May at -$ 0.05 /bbl.
180 CST Fuel Oil
Hectic trading activity was witnessed in the Platts window yesterday. On the first trading day in April, 13 380cst cargoes totaling 280 KT changed hands suggesting the commencement of another, bullish trading play. The April crack is valued -$ 3.70/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