Crude Oil
Crude Oil prices plunged as a crash in stock markets reignited fears of global oversupply. Brent closed 80 cents lower at $51.90 /bbl, whereas WTI settled 97 cents lower at $48.59 /bbl.
While prices have indeed dropped significantly yesterday, they still remain technically strong. Currently they are hovering around the 200 DMA line, a good technical support. A strong follow through action would be needed today to breach that support.
OPEC released its monthly report yesterday wherein its output was reported at 32.87 mb/d. This indicates a compliance rate of 86%. Output from Libya and Nigeria rose while production from Iraq, Venezuela and Angola declined.
India’s Indian Oil Corporation has secured permission to import 1 VLCC of US crude oil per month. They were reported to have purchased 1.6 million barrels of Mars crude last month.
Naphtha
Naphtha cracks have improved on the back of strong spot demand. After Korea and Japan, Taiwan’s Formosa, Asia’s top naphtha importer, is now seeking naphtha through a tender due to be awarded on August 11.
The August crack is higher at $1.00/bbl today.
Gasoline
Gasoline cracks have also managed to rise after fresh purchase tenders were floated by Vietnam’s Petrolimex, Indonesia’s Pertamina, (Asia’s top gasoline importer), and Sri Lanka’s Ceylon Petroleum Corp.
The August crack is stronger at $ 12.95 /bbl.
Distillates
The Distillate cracks have also strengthened buoyed by a decrease in Singapore’s onshore gasoil and jet fuel inventories which fell 9 % to a three-week low of 11.806 million barrels in the week to August 9. Firm demand from Europe has resulted in fewer cargoes arriving into Singapore this week as compared with the previous week.
The August Gasoil crack is valued at $ 13.20 /bbl. Regrade continues to be at $0.40 /bbl
Fuel Oil
Fuel Oil cracks have managed to remain unchanged even though inventories rose in key trading hubs of Fujairah and Singapore. Singapore’s onshore fuel oil inventories edged up 2.3 % to a two-week high of 23.65 million barrels in the week to August 9 while Fuel oil stocks held in Fujairah rose 6.4 % to a three-week high of 11.52 million barrels in the week to August 7.
The 180cst crack is unchanged at -$2.00 / bbl. The visco spread is too is unchanged at $0.50 /bbl.
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