Crude Oil
Crude oil Futures showed mixed reactions yesterday. While Brent gained 11 cents to settle at $ 56.01 / bbl. WTI lost 13 cents to settle at $ 53.20 /bbl.
The support for Crude oil ostensibly came from a statement out of Iraq that it would support the production cuts if they were extended.
We are frankly a bit flummoxed by this statement.
As per the original deal, Iraq was supposed to cut 210 Kbpd. It actually achieved only 50 Kbpd. Now it is saying that it will only cut 210 Kbpd if the cuts are extended. Aren’t the funds double counting this cut?
Naphtha
The Naphtha physical crack continued showing marginal improvements. The March MOPJ crack is valued at $ 0.40 / bbl. The Singapore crack for March is valued at around – $ 1.00 /bbl.
Gasoline
Gasoline prices stayed largely unchanged. The March crack is valued at $ 9.75 /bbl. April is valued at $ 10.0 / bbl
Middle Distillates
Gasoil prices too were more or less unchanged. The March crack is valued at $11.8 / bbl . The regrade is -$ 0.90 /bbl.
180 CST Fuel Oil
Fuel oil cracks slipped slightly to just under -$ 4.0 /bbl. The March crack is valued -$ 4.05/bbl and April around -$ 3.95/bbl. Petrochina has been a significant buyer of 380 CST fuel oil buying over 400 KT in Platts window over the past couple of trading days.
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