Crude Oil

Oil futures recovered around 1% and the US and China appeared closer to ending a trade war. Brent crude futures gained 60 cents to settle at $65.07 a barrel. U.S. crude gained 79 cents to settle at $56.59 a barrel.

Gains were tempered by a drop in equity indexes, which weakened sentiment on oil markets.

Russia, the biggest non-member ally of the OPEC, plans to speed up crude output cuts this month, Energy Minister Alexander Novak said.

Libyan state oil company (NOC) said production would resume at its 315,000 barrels per day El Sharara oilfield to regular output over the coming days. The opening of the field, which was closed in December when state guards and tribesmen seized it, will add to global crude supply. 


Asia’s naphtha crack settled marginally higher than Friday’s close on Monday.

The March crack is lower at -$ 6.05 /bbl


Asia’s gasoline margin extended gains on Monday to a four-month high of $1.96 a barrel premium to Brent crude , on steady demand and an easing supply glut. This came despite higher oil prices on Monday.

The March crack continues to recover and is now at $ 2.65 /bbl

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


Cash discounts for 10ppm gasoil widened to 28 cents a barrel to Singapore quotes, hurt by weaker deals in the physical market, and the market has lost some steam after Singapore middle distillate stocks climbed to a five-week high last week.

The wider gasoil market in the region, however, is expected to get some support this year from stronger demand in India, which is one of the key players in the region. India’s diesel consumption may rise to a record in 2019 as it approaches its general elections. Surging diesel consumption in India, the world’s third-largest oil user, underscores the country’s importance as a driver of global oil demand. 

Cash differentials for jet fuel were at a discount of 29 cents a barrel to Singapore quotes on Monday, compared with a discount of 27 cents a barrel on Friday. The physical jet fuel market in the Singapore window remained muted with no deals on Monday.

The March crack is lower at $ 15.10 /bbl with the 10 ppm crack at $16.05 /bbl. The regrade is lower at – $ 0.80 /bbl.

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

Fuel Oil

Buying interest in physical cargoes of 380-cst high-sulphur fuel oil (HSFO) jumped on Monday lifting cash premiums of the fuel to a near one-month high.

The 380-cst fuel oil cash premium rose for a fourth session straight to $3.06 a tonne to Singapore quotes, up from $2.95 a tonne on Friday.

Similarly, while trade activity in the paper market was relatively slow, 380-cst fuel oil barge cracks and front-month time spreads also firmed on Monday amid improved buying interest.

The March180 cst crack is still higher at $ 2.60 / bbl with the visco spread at $ 1.10 /bbl.

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

Hedge Recommendations

The fuel oil crack in the prompt is rising in the face of rising stocks which seems to suggest a play going on in the market. We will hedge one more tranche of Q2 FO crack at current value of $1.35 /bbl.

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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