The rise was attributed to a favorable report by the IEA on compliance with production cuts to the extent of 92% . There were also research reports laid out by various shops justifying the huge rise in stocks as being in sync with a rebalancing of supply with prices.
In other news, the Baker Hughes Report showed an addition of 9 rigs to those already deployed.
In the charts below, we can see that crude has shown its bullish bias, but the market is still directionless and not very convinced about either direction
The daily charts show a decisive rise over the last few trading sessions. The immediate resistance lies in the 57.15-57.50 are with a key resistance at 58.05. Below, a critical support lies at $ 54.00. Another strong up day should cause a crossover in the MACD which would be bullish for the commodity.
The weekly chart shows yet another spinning top. While the MACD is still bullish, the chart is showing bearish divergences. We would maintain the strategy we espoused last week i.e. stay short for March with a stop of above $ 58.30 /bbl
Naphtha continued to be strongly bid. The March MOPJ crack is valued at around $ 3.10 / bbl. The Singapore crack for March is valued at $ 1.9 /bbl.
Gasoline too continues to be strong on paper. However, the crack has dropped in value. The March crack is valued at $ 13.7/bbl.
The gasoil crack increased in value as strong demand propped it up in the prompt. The March crack is valued at $12.75 / bbl with the regrade at -$0.40 /bbl.
The Fuel Oil market continued in bullish mode as traders stayed focused on incoming supplies rather than immediate stock levels.
The March crack was valued at -$ 3.25/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