Crude Oil

Crude prices continued inexorably higher with Brent posting a third successive gain of $ 1 / bbl levels. Brent settled at $64.69 /bbl, $ 1.29 higher. WTI added on 63 cents to settle at $ 57.99 /bbl

Crude prices moved up today as the Forties pipeline system shut for repairs and news of an explosion in New York affected market sentiments. Prices broke through the third resistance mentioned in our OPD technical analysis yesterday and this morning are hovering around $ 65.00 at the time of writing.

The pipeline which shut down has a capacity of 450 kbpd and was operating at reduced  outflow for while before the shut down today. The duration of shutdown is unknown and could be as long as several weeks according to a spokesman for the pipeline owners Ineos

This price rise is largely sentiment driven, extremely similar to the rise in prices after the Keystone pipeline shutdown and its reopening should result in a pullback of prices.

In other news,  the UAE said OPEC and its partners will seek to announce an exit strategy from the supply cut deal next June, although this does not mean the pact will end by then. UAE holds presidency of the cartel in 2018. On Sunday, Kuwait’s oil minister also said that the cartel would study the possibility of an exit strategy before June next year.


Naphtha cracks eased on Monday as supplies became available from India from Essar Oil and HMEL.

The balance December naphtha crack has eased to $4.55 /bbl whereas the January crack is at $ 4.00 /bbl


The gasoline market remains well balanced. India reported a demand growth of 4.8% in gasoline demand.

The balance December 92 Ron paper crack is valued higher at $ 12.10 /bbl while the January crack is at $ 11.85 /bbl


The benchmark Asian gasoil cash differential slipped on Monday on spot supply from India but demand from Sri Lanka and a fire at a Singapore refinery kept losses in check. Royal Dutch Shell said a fire at its Singapore refinery-petrochemical site was extinguished on Sunday and no one was hurt in the incident.Sri Lanka’s Ceylon Petroleum Corp is seeking a total of 430,000 barrels of jet fuel and gasoil for delivery in January, ahead of a major refinery maintenance that begins in early February. India has reported a diesel demand growth of 7.5 %

The balance December Gasoil crack has risen to $13.70 /bbl. with the regrade at $0.50 /bbl. The January Gasoil crack is valued at $ 13.80 /bbl with the regrade at $ 1.05 /bbl

Fuel Oil

Asia’s January 180-cst fuel oil crack narrowed its discount to Brent crude on Monday, snapping six straight sessions of losses.  India’s fuel oil demand was unchanged in November compared with the same month last year, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed. India’s domestic sales of fuel oil in November totalled 570,000 tonnes, unchanged from October as well.

The crack for balance December has jumped up to – $ 4.30 /bbl with the visco spread unchanged at $ 0.50 /bbl. The January crack is valued at – $ 3.70 /bbl with the visco spread at $ 0.70 /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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