Market players attributed this rise to traders focusing on the draw in gasoline. Just as a reminder, the draw was of the order of 0.9 Million barrels.
The March MOPJ crack is valued at around $ 2.70 / bbl. The Singapore crack for March is valued at $ 1.5 /bbl.
Gasoline has strengthened once again yesterday. The March crack is valued at $ 14.3/bbl. This is notwithstanding a huge rise in gasoline stocks in Singapore (1.16 Million barrels).
Traders attributed this rise to the drop in US stocks.
In our opinion the drop is too small to be of significance in Asia. We would strongly recommend selling the crack at these levels as well.
The backwardation in the gasoil market increased today as traders were planning for turnarounds. However, the arbitrage to the west appears firmly shut for now and stocks continue to be ample as stocks increased by 1.6 Million barrels. The March crack is valued at $12.45 / bbl with the regrade at -$0.30 /bbl.
The Fuel Oil market continued to stay backwardated notwithstanding another significant rise in stocks in Singapore
Traders however stated that March arrivals were likely to be significantly lower and hence the crack stayed bid. The March crack was valued at -$ 3.65/bbl, marginally lower than yesterday.
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