Crude Oil

Oil prices rose significantly yesterday after the US returned from the Columbus day holiday. Brent settled 82 cents higher at $56.61 /bbl. WTI gained $ 1.34 to settle at $ 50.92 /bbl.

Markets reacted positively to the cutting of allocations by Saudi Aramco as also the impact of crude production shut down in the US Gulf of Mexico.

However, the US production has commenced resumption of operations and should be back to normal pretty soon. However, 1.02 mbpd of production still remains off line as of last night.

The market will await the weekly report from the API which is out today due to the holiday on Monday.


The naptha cracks have risen slightly on the back of spot demand seen in the market from the likes of Japan’s Idemitsu and China’s Unipec. Overall, demand for naphtha as a petrochemical fuel is believed to be firming.

The paper crack has strengthened to $ 3.05 /bbl


The gasoline cracks have also managed to strengthen supported strong demand from Latin America and West Africa.

In other news, China’s moves to slash reliance on the internal combustion engine will hit its oil majors. Sinopec in particular will be hit the hardest because its gasoline sales accounted for about 25% of its total revenue at its listed unit, China Petroleum & Chemical Corporation.

The October 92 Ron crack is higher at $ 11.90 /bbl.


Distillate cracks have also risen amid an active Singapore Trading Window which witnessed six gasoil cash deals and three jet fuel cash deals.

The October crack is valued higher today at $13.20 /bbl.  The regrade is valued at -$ 0.50 /bbl, down from yesterday

Fuel Oil

Lower expectations of tight Singapore fuel oil supplies in the coming months has cut back part of the gains in 380-cst fuel oil cash premiums and time spreads which had earlier risen to multi-month highs last month.

The October 180 cSt crack is valued marginally lower at -$2.60 / bbl.  The visco spread is steady at $ 0.55 /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

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