Crude OilCovid StatsNaphthaGasolineDisitllatesFuel OilHedge Strategy

Oil prices settled higher Monday, supported by renewed bets on a recovery in energy demand as the U.S. reopening picks up speed ahead of the summer driving season.

Brent crude futures rose 1.22% to trade at $67.58 per barrel. WTI crude rose 1.43% to settle at $64.49 per barrel.

ADNOC set its Jun’21 OSPs for its Murban crude at $63.35/bbl, , based on the trading of newly launched ICE Murban futures, with Umm Lulu, Das and Upper Zakum set at a discount of 5c/bbl, 35c/bbl and 40c/bbl respectively to Murban.

OPEC’s share of India’s oil imports fell to 3.97 MMB/D in the 2021 fiscal year to 31 Mar’21, down 11.8% YoY, the lowest in at least two decades as overall purchases by Asia’s third largest economy fell to a 6-year low.

At a global level, the death toll from the COVID-19 virus rose to 3,226,743 (+10,478 DoD) yesterday. The total number of active cases rose fell by around 140,000 DoD to 18.65 million. (Click here for details).

Asia’s naphtha crack slipped to $93.90 per tonne, down 95 cents from a more than three-week high hit in the previous session.

While trade in naphtha cargoes for the second-half of June should begin to emerge, demand could be limited as buyers opt for cheaper LPG feedstock alternatives, trade sources said.

The May crack is unchanged at $ 0.75 /bbl

Asia’s gasoline crack slipped to $6.51 per barrel on Monday, compared with $6.58 per barrel on Friday.

India’s gasoline sales were down 13.5% in April from the previous month and 4.1% lower from April 2019.

The May crack is higher at $9.45 /bbl

Click Here for a graphical depiction of Global Gasoline stocks by region.

Asia’s cash differentials for gasoil with 10 ppm sulphur widened to 19 cents per barrel to Singapore quotes, while the May/June time spread for the industrial fuel grade in Singapore widened its contango structure to trade at minus 10 cents per barrel on Monday.

Cash discounts for jet fuel gained by a cent to 18 cents a barrel to Singapore quotes on Monday.

The May crack for 500 ppm Gasoil is higher at $5.65 /bbl with the 10 ppm crack at $ 7.00 /bbl. The regrade is at -$ 0.10 /bbl. 

Click Here for a graphical depiction of Global Distillate stocks by region.

Asia’s 0.5% very low-sulphur fuel oil (VLSFO) cash premium was at its narrowest in more than a month on Monday, weighed by ample supplies, sluggish bunker demand and an absence of deals in the Singapore trading window.

VLSFO cash premiums sank to 50 cents a tonne to Singapore quotes on Friday, down from 75 cents a tonne on Thursday.

Fuel oil stocks in the ARA refining and storage rose 1%, or 21,000 tonnes, to 1.533 million tonnes in the week ended April 29, data from Dutch consultancy Insights Global showed.

The May crack for 180 cst FO is higher at  -$3.80 /bbl with the visco spread at $0.80 /bbl.

Click Here for a graphical depiction of Fuel Oil stocks by region.

No fresh action today. 

Hedge recommendations are essentially made for refiners. These are not trading positions as such. The rationale of these positions is to lock in extraordinary levels for the refinery.

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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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