Oil markets gave up some of their euphoria based gains yesterday.
Brent settled at $ 45.84/bbl down 52 cents, while WTI settled at $44.66/bbl down 51 cents.
The outlook for crude remains bleak for now. Nevertheless, we still expect to see an uptick by the end of the year. This will be aided by a strong winter.
The Naphtha market seems to be showing signs of greater availability of supplies going forward. However, for now, the Naphtha crack for December and January are at yesterday’s levels of $ 1.8 / bbl and $1.4/ bbl for December and January respectively
The Gasoline crack eased off by over 30 cents and is currently showing a vlaue of $ 10.85 /bbl
The middle distillates recovered a bit today as the gasoil crack for December rose up to $12.65 /bbl from $ 12.50.
Market is expecting more supplies in second half of November coupled with crack selling which could see the backwardation in gasoil come off.
Airlines have been buying Jet at the back of the curve which could be another reason for the improvement of the regrade. The value for the January regrade has softened today by 10 cents around $ 1.10 / bbl.
The value of the December crack continued to ease today albeit it marginally to -$ 1.6 /bbl.
Onshore inventories declined to a 10 week low to a level of around 21 Million barrels.
Traders are expecting arbitrage cargoes to arrive in the second half of November which should ease both the inventory situation as well as the crack.
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.