Crude Oil
With the US market shut for the US Independence Day, Oil Prices struggled to maintain their upward momentum. Brent closed 7 cents lower at $49.68 /bbl. There is no settle reported for WTI due to the holiday.
Today, the markets await the API data, delayed by one day due to yesterday’s holiday. While the market sentiment has definitely shifted to being bullish, markets will look to the data for justification or rebuttal of this sentiment.
Naphtha
The Naphtha physical market estimates a supply of 5.6 million tons arriving into Asia this month, up more than 12% over the previous month.
The July crack has weakened to -$1.15 /bbl
Gasoline
Gasoline cracks continued to strengthen thanks to demand arising out of India. HPCL has floated 2 tenders to import 35 KT each. While BPCL is also looking for gasoline, it is reported to have canceled a tender to buy 70 KT of gasoline due to ‘unworkable offers’ (our quotes).
The July crack is valued at $ 10.20 /bbl
Distillates
Distillate cracks too are being propped up by demand out of India, with HPCL reporting to be seeking a seventh cargo of 60 KT. This demand is largely due to the HPCL-Mittal refinery taking longer to come out of turnaround than anticipated. An unexpected source of demand has also arisen due to power outages requiring the usage of diesel generator sets.
The July crack is higher at $ 12.85 /bbl. Demand for Jet does not seem to have grown with that for diesel however. The July regrade is valued at -$ 1.10/bbl
Fuel Oil
Selling pressure have pressured Fuel Oil prices this week. The inter month time spreads have come down to around $ 1 / MT this week from $ 2.25 about 10 days ago. The Fuel oil crack also has come down in value.
The July crack is valued at -$0.70 / bbl. The visco spread is at $0.85 /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.