Crude prices rose primarily on reports of cuts in US production and anticipation of US, API data. Brent and WTI once again gained identically at 64 cents each to settle at $ 47.52 / bbl and $ 45.04 / bbl. respectively.
Anticipation of draws in US crude stocks could also have contributed to the rise in prices. These anticipations were not belied as API reported a draw of 8.1 million barrels. This number has apparently caused prices to rise by a further 60 cents at the time of writing.
If the DOE confirms both the draw, as well as the drop in US production, we would not be surprised to see crude prices back with with a $50 handle.
On the bearish side, there are reports that Saudi Arabia produced more than its quota in the month of June.
The physical crack for naphtha continued to rise yesterday. However, there is no change in the situation of ample supplies in the region.
The July crack is weaker at -$0.30 /bbl. The August crack is at -$0.30 /bbl
The Gasoline physical crack resumed its upward climb. Fundamentals here appear more constructive than they do do for naphtha
The July crack has risen $ 11.70 /bbl. August is valued at $ 10.80 /bbl.
The physical gasoil crack settled marginally firmer, but ample supplies, combined with the return of refineries from turnarounds suggest that rises in prices may be capped.The July gasoil crack is valued at $ 13.20 /bbl and August around $ 12.40 /bbl.
The July regrade has once again slipped to below -$1.00 /bbl for July. August is at -$0.60 / bbl.
The fuel oil market came under significant selling pressure in the window yesterday. Ex-wharf premiums, a key indicator of prompt supply fundamentals have been consistently easing over the past few weeks. The backwardation in flat price also has eased out to around 75 c/MT, down from $ 2.25 at the peak of bullishness. The 180 cSt July crack is at -$0.50 / bbl. The visco spread is still at $0.85 /bbl.
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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.