Crude OilCovid StatsNaphthaGasolineDisitllatesFuel OilHedge Strategy

Oil prices rose on Monday after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites. 

Brent rose 33 cents to settle at $63.28 a barrel. U.S. West Texas Intermediate (WTI) rose 38 cents to settle at $59.70 a barrel.

 US oil output from seven major shale formations is expected to rise for a 3rd straight month, climbing by about 13 KB/D in May’21 to 7.61 MMB/D, the US EIA said on Monday.

Hedge funds have cut their position in petroleum for the 2nd time in three weeks in response to a resurgence of coronavirus infections selling the equivalent of 35 MMB in the week to 6 Apr’21.


At a global level, the death toll from the COVID-19 virus rose to 2,958,241 (+8,761 DoD) yesterday. The total number of active cases rose by around 40,000 DoD to 23.86 million. (Click here for details)

Asia’s naphtha crack extended losses, dropping to a near three-week low of $94.43 a tonne, down from $96.30 a tonne in the previous session.

Refinery turnarounds in North Asia weakened the demand outlook for naphtha as steam crackers were taken offline, trade sources said.

The May crack is lower at $ 0.10 /bbl

Asia’s gasoline cracks edged higher on Monday, supported by increased import requirements from Indonesia following a recent fire at Pertamina’s Belongan refinery, but sentiment was capped by concerns over regional demand as a new wave of COVID-19 infections hit several countries, trade sources said.

The gasoline crack climbed to a two-session high of $6.52 a barrel on Monday, up from $6.39 a barrel in the previous session.

The May crack is unchanged at $8.90 /bbl

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

Cash differentials for 10 ppm gasoil dipped 5 cents on Monday to a discount of 6 cents per barrel.

The April/May time spread for gasoil continued to widen its contango structure to minus 19 cents per barrel.

Cash discounts for jet fuel were at 59 cents per barrel to Singapore quotes on Monday, compared with a discount of 60 cents per barrel on Friday.

The May crack for 500 ppm Gasoil is unchanged at $5.75 /bbl with the 10 ppm crack at $ 6.85 /bbl. The regrade is at -$ 1.05 /bbl. 

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

Asia’s prompt-month VLSFO crack extended gains on Monday, climbing to a one-month high of $13.23 a barrel above Dubai crude, data in Refinitiv Eikon showed.

The May crack for 180 cst FO is lower at  -$4.55 /bbl with the visco spread at $1.00 /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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