Crude Oil

Oil prices fell on Tuesday, with U.S. crude futures down 2% after manufacturing data raised concerns about a weakening global economy. Brent crude futures settled 40 cents lower at $ 58.26 /bbl. WTI crude futures settled $ 1.16 lower at $53.94 /bbl.

Prices extended losses following data that showed U.S. manufacturing activity in August contracted for the first time in three years. 

Separate data showed euro zone manufacturing activity contracted for a seventh month in August.

U.S. President Donald Trump said on Tuesday that trade talks between the United States and China were going well, though he warned he would be “tougher” in negotiations if discussions drag on until his second term.  Trump said the two sides would meet for talks this month.

Chinese Vice Premier Liu He said China firmly opposes a trade war, the state news agency Xinhua reported.

On the supply side, Venezuela’s oil exports fell in August to their lowest level in 2019, following tougher U.S. sanctions.

Russian oil production  in August rose to 11.294 million barrels per day (bpd), data showed on Monday, hitting its highest since March and topping the rate Moscow pledged under a pact with OPEC.


Asia’s naphtha crack was at a three-day high of $14 a tonne on Tuesday but this was about half the value from a month ago as slow demand and ample supplies have battered the market.

South Korea’s Hanwha Total has bought heavy full-range naphtha for second-half October delivery to Daesan on Monday at premiums of about $6 to $7 a tonne to Japan quotes on a C&F basis. It had on Aug. 27 bought the fuel for first-half October delivery at premiums in the high single-digit level to Japan quotes on a C&F basis.

Most buyers have recently completed replenishing stocks for first-half October and have not yet emerged to buy naphtha scheduled for second-half October delivery. Asia’s gasoline profit-margin tanked and reached a 1-1/2 month low of $4.40 a barrel.

The September crack is higher at -6.55 / bbl.


No fresh news on the gasoline markets.

The September crack is lower at $ 6.00 /bbl

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


Cash premiums for gasoil with 10ppm sulphur content  dropped to 17 cents a barrel to Singapore quotes on Tuesday, compared with a premium of 26 cents per barrel on Monday.

The gasoil market in the region has ample supplies, with traders expecting more Asian gasoil barrels to head to Europe as buyers take advantage of a big price gap between the two regions.

The Gasoil EFS is currently at its widest levels for this time of the year in at least seven years. 

Cash premiums for jet fuel  were at 7 cents a barrel to Singapore quotes, the lowest since Aug. 19. The differentials were at a premium of 8 cents on Monday.

The prompt-month time spread for the aviation fuel  narrowed its backwardated structure by a cent to be at 11 cents per barrel on Tuesday.

The September crack for 500 ppm Gasoil is higher at $ 15.80 /bbl with the 10 ppm crack at $ 16.65 / bbl. The regrade is at  + $ 0.15 /bbl 

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

Fuel Oil

Asia’s cash premiums for mainstay 380-cst high-sulphur fuel oil (HSFO) rose to a fresh record on Tuesday, buoyed by strong demand and limited supplies. The cash premium for 380-cst HSFO  soared to a record high of $40.27 per tonne to Singapore quotes on Tuesday, up from the previous record of $40 on Aug. 28. The cash differentials were at $38.50 per tonne on Monday.

The 380-cst September/October time spread widened its backwardated structure to trade at $36.50 a tonne, up from $32.75 a tonne in the previous session.

Asia’s 180-cst fuel oil crack to Dubai crude for October  fell to minus $11.82 a barrel during Asian trading hours on Tuesday, compared with minus $11.21 on Monday. The more actively-traded 380-cst barge crack to Brent crude  inched up to minus $21.72 a barrel during Asian trading hours, compared with minus $22.11 per barrel a day earlier.

The September 180 cst crack is higher at – 7.35  / bbl with the visco spread at  $ 0.75 /bbl.

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

Hedge Recommendations

No fresh recommendations 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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