Crude Oil
Oil prices crashed on Wednesday after the DOE reported a smaller draw than the API had and showed builds in products. Brent futures fell $ 2.37 cents to settle at $72.27 a barrel. WTI crude futures also settled $ 2.23 lower to settle at $66.94 a barrel.
Prior to the data, oil prices were already on the back foot as the China slapped a 25% tariff on another $16 billion worth of U.S. products, including crude.
The draw of 1.3 million barrels of crude was significantly lower than that reported by the API and much lower than expectations. Also, contrary to expectations, gasoline stocks and distillate stocks built significantly.
The build in products came as refinery activity rose to 96.6% of their capacity last week from 96.1% a week earlier, with inputs averaging about 17.6 million barrels per day during, up 118,000 barrels from the prior week, the EIA said.
The gasoline build would have been particularly disappointing to bulls as it was caused by a steep drop in gasoline demand of over half a million barrels. Such drops in the height of the gasoline season would suggest that prices are indeed too high for the American consumer.
Crude oil production continued to drop marginally to 10.8 mb/d, possibly fluctuating a bit as the fields look to stabilize.
For detailed charts on US inventory data please click here
Naphtha
With Singapore closed for its national day, there is no report on products. Prices are as of Wednesday.
The balance August crack has dropped to $ 0.15 /bbl.
Gasoline
With Singapore closed for its national day, there is no report on products. Prices are as of Wednesday.
The balance August crack has jumped to $ 9.60 / bbl.
Click Here for a graphical depiction of Global Gasoline stocks by region.
Distillates
With Singapore closed for its national day, there is no report on products. Prices are as of Wednesday.
Click Here for a graphical depiction of Global Distillate stocks by region.
Fuel Oil
With Singapore closed for its national day, there is no report on products. Prices are as of Wednesday.
The balance August 180 cst crack is marginally stronger at -$ 1.05 / bbl with the visco spread at $ 1.05 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
Hedge Recommendations
Nothing fresh to report 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 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.