Oil prices were little changed on Thursday as a falling dollar and rising stock markets offset earlier declines caused by a big increase in U.S. gasoline stockpiles and subdued demand compared with pre-pandemic levels.
Brent crude settled up 4 cents at $63.20 per barrel whereas WTI settled up 17 cents at $59.60 per barrel.
The market is continuing to search for direction as possible demand growth is stymied by fresh Covid 19 surges.
At a global level, the death toll from the COVID-19 virus rose to 2,914,247 (+13,854 DoD) yesterday. The total number of active cases rose by around 90,000 DoD to 23.07 million. (Click here for details)
Asia’s naphtha crack weakened to $96.30 a tonne on Thursday, from $100.28 a tonne in the previous session.
The April crack is lower at $0.65 /bbl. The May crack is at $ 1.05 /bbl
Asia’s gasoline crack extended losses on Thursday after data showed an increase in gasoline stockpiles in Singapore and the United States, sparking concerns about demand weakening.
The crack fell to $6.54 a barrel on Thursday, the lowest since March 29, from $7.07 a barrel in the previous session..
Light Distillate inventories in Singapore rose 344,000 barrels to a two-week high of 14.594 million barrels in the week to April 7, according to Enterprise Singapore data.
The April crack is higher at $8.30 /bbl. The May crack is at $8.65 /bbl
Click Here for a graphical depiction of Global Gasoline stocks by region.
Cash discounts for 10 ppm gasoil narrowed to 1 cent per barrel to Singapore quotes, the smallest discounts since March 1. They were at a discount of 4 cents per barrel on Wednesday.
Middle Distillate inventories in Singapore dropped 2.4% to 12.96 million barrels in the week ended April 7, according to Enterprise Singapore data.
Cash discounts for jet fuel were at 61 cents per barrel to Singapore quotes on Tuesday, compared with a discount of 63 cents per barrel on Thursday.
The April/May time spread for jet fuel remained unchanged to trade at minus 40 cents per barrel on Thursday, Refinitiv Eikon data showed.
Global air cargo demand in February, which showed strong month-on-month growth over January, outperformed the pre-COVID levels of February 2019 by 9%, the International Air Transport Association (IATA) said in a statement on Wednesday.
The April crack for 500 ppm Gasoil is lower at $4.75 /bbl with the 10 ppm crack at $ 5.80 /bbl. The regrade is at -$ 1.45 /bbl.
The May crack for 500 ppm Gasoil is at $5.55 /bbl with the 10 ppm crack at $ 6.65 /bbl. The regrade is at -$ 1.05 /bbl.
Click Here for a graphical depiction of Global Distillate stocks by region.
Cash differentials for Asia’s 380-cst high-sulphur fuel oil (HSFO) flipped to a discount on Wednesday amid lacklustre prompt demand and ample supplies, trade sources said.
The 380-cst HSFO cash differential fell to a 25 per tonne discount on Wednesday, down from a 42 cent per tonne premium in the previous session.
The 380-cst HSFO front-month May/June time spread also fell for a third session on Wednesday, hitting a two-week low of $1.25 a tonne, according to Refinitiv data in Eikon.
Light Distillate inventories in Singapore rose 344,000 barrels to a two-week high of 14.594 million barrels in the week to April 7, according to Enterprise Singapore data.
The April crack for 180 cst FO is lower at -$5.05 /bbl with the visco spread at $1.15 /bbl.
The May crack for 180 cst FO is at -$4.50 /bbl with the visco spread at $1.00 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
No fresh action today.
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 refinery.
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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.