Oil Price Digest 13-Oct-16
Crude Oil prices eased today on the back of
- High Opec Production in the previous month from the OPEC countries. It is hard to figure out HOW they will go about cutting production from here and further, by how much they will cut it.
- API data showed a build in crude stocks for the first time in six weeks.
Naphtha continues to stay weak. While there are buyers around, supplies are also ample. This was compounded by the unplanned shutdown of a couple of crackers. The crack seems to marginally weaker to unchanged.
Gasoline has shown some strength with demand coming in both in Europe and Asia. The crack has not changed significantly though.
The gasoil market seems to be well supported even though Chinese demand is expected to drop leading to adequate supply in the east. Structurally, the prompt market strengthened. There is talk in the market about gasoil being moved out of Korea in a VLCC to West Africa. However the crack has not changed much.
Not much heard in the market about Jet trades.
The fuel oil East-West arbitrage has increased further which would make it easier to ship cargoes across to Singapore. Cracks however remain steady.
About this blog
This blogpost 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.