Crude Oil

U.S. crude futures were slightly lower on Thursday, drawing some support from the stock market after earlier touching nearly two-month lows on weak economic data. WTI crude  settled at $52.45 a barrel, down 19 cents. Brent crude  settled up 2 cents at $57.71 a barrel.

Even as U.S. crude pared losses late in the day, crude futures have found lower lows in each of the last eight sessions. During the session, both benchmarks tumbled to the lowest level seen since early August, plunging as weak U.S. economic figures were released. U.S. services sector growth slowed to its most anemic pace in three years last month, and job growth in the largest slice of the American economy was the weakest in half a decade, a survey of purchasing managers showed.

Across the Atlantic, economic data has also put pressure on crude. Euro zone business growth stalled in September, a survey on Thursday showed.

Lending oil some support were hopes that the United States and China might make progress in resolving their trade dispute and figures showing output in the United States which has been the fastest source of supply growth fell in July. Speculation of further rate cuts by Fed  also lent some support to global markets and partly helped to correct earlier slump observed in both crude benchmarks.


No fresh news on Naphtha markets.

The October crack is lower at – $ 4.85 / bbl.


Asia’s gasoline crack neared a two-week high of $9.71 a barrel on Thursday as supplies were tightening due to refinery maintenance and overall firm demand.

Demand from Indonesia is expected to stay strong as state energy firm PT Pertamina needs to plug a supply gap caused by maintenance at its Cilacap refinery, which started last month.

Singapore’s onshore light distillate stocks edged up 74,000 barrels to reach a three-week high of 10.1 million barrels in the week to Oct. 2, data from Enterprise Singapore showed. The current level, however, was 10% lower than a year ago, the data showed. 

The October crack is higher at $ 8.70 /bbl

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


Asia’s 10ppm gasoil crack stayed above $18 a barrel for a ninth straight session on Thursday as refinery maintenance and healthy demand were expected to keep supply tight.

In addition, refineries in maintenance or going into turnaround mode would disrupt production. Singapore’s onshore middle distillate stocks 1.27 million barrels to a three-week low of 12.394 million barrels in the week to October 2, data from Enterprise Singapore showed. 

The October crack for 500 ppm Gasoil is lower at $ 16.85 /bbl with the 10 ppm crack at $ 17.85 / bbl. The regrade is at  + $ 0.35 /bbl 

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

Fuel Oil

Cash premiums for Asia’s 380-cst high-sulphur fuel oil (HSFO) extended losses on Thursday, falling for a fifth straight session as focus and demand gradually shifts to lower sulphur fuel alternatives ahead of the 2020 sulphur cap.

In contrast, the front-month 380-cst HSFO barge crack recovered some ground, narrowing its discount to Brent crude to minus $23.50 a barrel. The front-month barge crack hit a record low of minus $26.08 a barrel on Oct. 1.

Singapore’s onshore middle distillate stocks shrank by 1.239 million barrels from the previous week to 19.13 million barrels. Compared with year-ago levels, onshore fuel oil inventories were 9% higher. 

The October 180 cst crack is lower at -$  9.45 / bbl with the visco spread at  $ 1.20 /bbl.

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

Hedge Recommendations

No fresh action for 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 refiner.

Click Here to see how all our recommendations have fared

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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