At the same time, API reported a huge build of 11.4 million barrels in crude stocks in its weekly report yesterday, a statistic which will dampen market sentiment today. While it is offset to some extent by unarguably bullish draws of 5.0 million barrels in gasoline and 2.9 million barrels in distillates, the crude build underscores the fact that there does not appear to be any shortage of crude oil. And the market is yet to see the impact of the freshly added oil rigs in the past several months. This can be expected to start supplying the market significantly from the next month onwards.
Markets will look to the official report from the EIA today for confirmation. Analysts expectation are
Crude : + 1.9 MB
Gasoline : – 1.4 MB
Distillates : – 0.9 MB
Gasoline continued to improve. The March crack is valued at $ 10.5 -$ 11.00 /bbl. April is valued at $ 10.4 / bbl. We expect to see the crack improve over the next few days as the impact of the gasoline draws manifests itself through global stocks. The markets will hope for a good driving season in the US.
180 CST Fuel Oil
Fuel oil cracks continue to stay at just below -$ 4.0 /bbl. The March crack is valued -$ 4.05/bbl and April around -$ 3.95/bbl. The spate of buying in the window continues, but it does not seem to do much in terms of improving market sentiment.
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Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity