There was no edition of the oil price digest on 5th and 6th September
Oil prices rose above $61 a barrel on Friday after the head of the U.S. Federal Reserve said the central bank will act “as appropriate” to sustain an economic expansion. Brent crude futures settled 59 cents higher at $ 61.54 /bbl. WTI crude futures settled 22 cents higher at $56.52 /bbl.
Brent posted its fourth consecutive weekly gain, rising 1.8%, while WTI rose 2.6% this week, boosted mainly by Wednesday’s upbeat economic data from China
Oil prices had fallen earlier in the session as U.S. government data showed the nation’s job growth slowed in August for the seventh month in a row, with nonfarm payrolls expanding by 130,000, about 28,000 less than economists polled by Reuters had forecast.
Global oil demand could grow by just 900 kbpd in 2019 and 2020 down from earlier predictions of about 1.3 million bpd.
China’s exports unexpectedly fell in Aug’19 (-1.0% YoY) the biggest fall since Jun’19 when it fell 1.3% YoY, as shipments to the US slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus.
U.S. oil companies cut the number of rigs drilling for crude by four this week, bringing the total count to 738, the lowest in almost two years.
Asia’s naphtha crack ended the week at a one-month high of $22.23 a tonne as buyers came forward to buy cargoes before the start of a major annual oil event in Singapore next week.
South Korea’s YNCC, Lotte Chemical, SK Energy, KPIC and Hanwha Total were among the several North Asian buyers in the market this week.
Spot prices for open-specification naphtha bought this week for second-half October delivery to South Korea were, however, still at discount levels of about $2 a tonne to Japan quotes on a cost-and-freight (C&F) basis due to over supply of the grade.
The September crack is higher at – $6.25 / bbl.
The October crack is at – $ 5.40 / bbl.
No fresh news on the gasoline markets.
The September crack is higher at $ 6.75 /bbl
The October crack is at $ 5.95 /bbl
Click Here for a graphical depiction of Global Gasoline stocks by region.
Cash premiums for 10 ppm gasoil edged higher to 6 cents a barrel to Singapore quotes on Friday, up from 5 cents per barrel a day earlier.
Cash premiums for jet fuel were at 14 cents a barrel to Singapore quotes on Friday, compared with 10 cents a barrel on Thursday.
The September crack for 500 ppm Gasoil is steady at $ 15.80 /bbl with the 10 ppm crack at $ 16.65 / bbl. The regrade is at + $ 0.20 /bbl
The October crack for 500 ppm Gasoil is at $ 16.80 /bbl with the 10 ppm crack at $ 17.50 / bbl. The regrade is at + $ 0.20 /bbl
Click Here for a graphical depiction of Global Distillate stocks by region.
Asia’s cash premium for mainstay 380-cst fuel oil fell on Friday, drifting away from record highs touched this week, while refining profit margins for the heavier distillate posted the biggest weekly drop in four weeks.
Cash differentials for 380-cst HSFO dropped to $39.02 a tonne above Singapore quotes, compared with $39.36 per tonne on Thursday.
The more actively traded 380-cst barge crack to Brent crude for October rose to minus $20.28 a barrel during Asian trade on Friday, against minus $21.20 on Thursday, Refinitiv Eikon data showed. The 380-cst barge crack, however, has weakened by about 21% this week for its biggest weekly decline since Aug. 9.
The September 180 cst crack is lower at – 3.55 / bbl with the visco spread at $ 0.50 /bbl.
The October 180 cst crack is at – 9.60 / bbl with the visco spread at $ 1.00 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
No fresh recommendations for 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.