As we had mentioned yesterday, the probability of a supply overhang in the wake of the US ramping up production and demand for products seems to be high. The Baker Hughes Rig count showed that 17 more rigs were added this week to a total of 583 rigs.
The increased liquidation risk given the long positions of the speculators (which is close to 1 billion barrels) has also created a sense of caution among buyers
The February MOPJ crack is valued at around $ 3.0 / bbl and March at $ 2.30 / bbl. The Singapore crack for February is valued at $ 1.6 /bbl for February.
The gasoline markets surprisingly lost strength in the face of good physical demand. The February crack is valued at $ 12.85 cents /bbl. The March crack is valued at $ 12.4/bbl.
The gasoil crack gained in strength. However, the regrade was unable to keep up. The February crack is valued at $12.0 /bbl with the Regrade at -$0.40 /bbl
The Fuel Oil crack has settled down after moving around a bit. February is now valued at – $ 3.8 /bbl which is marginally better than yesterday and March at -$ 4.05/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.
Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity