Crude OilCovid StatsNaphthaGasolineDisitllatesFuel OilHedge Strategy

 Oil prices settled almost unchanged on Monday after Colonial pipeline officials said that they could largely restart within the week after a cyberattack forced its shutdown.

Brent crude futures settled at $68.32, up 4 cents.

The ransomware gang accused of crippling the leading US fuel pipeline operator said on Monday that it never meant to create havoc, an unusual statement that experts saw as a sign the cybercriminals’ scheme had gone awry.

OPEC produced 25.28 MMB/D in Apr’21, up 80 KB/D MoM; Russia and eight other non-OPEC partners in the group’s supply accord added 13.21 MMB/D, up 130 KB/D, according to the latest S&P Global Platts survey.


At a global level, the death toll from the COVID-19 virus rose to 3.32 Million (+10,586 DoD) yesterday. The total number of active cases rose fell by around 200,000 DoD to 18.07 million. (Click here for details).

Asia’s naphtha crack dropped 67 cents to $96.43 a tonne on Monday  as cracker operators sought cheaper liquefied petroleum gas (LPG) as feedstock.

The June crack is lower at $ 0.35 /bbl

Asia’s gasoline margin rebounded on Monday as a jump in U.S. prices, following a cyberattack that shut a major fuel pipeline over the weekend, offset lower demand in the U.S. east coast due to the coronavirus pandemic.

The gasoline crack in Singapore rose to $6.69 per barrel on Monday, from $6.33 per barrel in the previous session.

Traders provisionally booked at least six tankers to ship gasoline from Europe to US destinations following a cyber attack that shut the US’ top fuel pipeline network, Refinitiv Eikon data showed on Monday.

The June crack is lower at $8.75 /bbl

Click Here for a graphical depiction of Global Gasoline stocks by region.

Asia’s cash differentials for gasoil with 10 ppm sulphur were at a discount of 14 cents per barrel to Singapore quotes on Monday, 4 cents lower than the previous day.

The exchange of futures for swaps (EFS), the gasoil price spread between Singapore and Northwest Europe, dropped to a one-week low of around minus $15 a tonne on Monday, Refinitiv data showed, making arbitrage shipments to the West more economical.

Cash differentials for jet fuel eased by a further three cents to a premium of 9 cents a barrel to Singapore quotes on Monday.

Global scheduled airline capacity for the week starting 10 May’21 was down 0.4% WoW to 62.1 million seats, 58.2% of Jan’20 levels, as a plunge in SE Asia capacity offset a rise in European and North American capacity, according to OAG..

The June crack for 500 ppm Gasoil is lower at $6.65 /bbl with the 10 ppm crack at $ 8.00 /bbl. The regrade is at -$ 0.45 /bbl. 

Click Here for a graphical depiction of Global Distillate stocks by region.

Concerns of over supply and limited incremental demand weighed on Asia’s 0.5% very low-sulphur fuel oil (VLSFO) and high-sulphur fuel oil (HSFO) markets.

The front-month VLSFO time-spread and crack against Dubai crude were lower on Monday, at minus $1 per tonne and $12.28 a barrel, respectively.

The VLSFO cash differential, however, nudged 34 cents per tonne away from a more than four-month low on Friday to minus $1.22 a tonne as cargo deals resurfaced in the Singapore window.

The HSFO market was also weighed down by a sluggish power generation demand and ample supplies with cash premiums for cargoes of the mainstay 380-cst HSFO falling to a 2021 low of minus 52 cents a tonne to Singapore quotes.

The June crack for 180 cst FO is lower at  -$5.35 /bbl with the visco spread at $0.85 /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.

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.

Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity

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