Crude Oil

Oil prices settled about 3% lower on Monday as force majeure at Libya’s largest oilfield was lifted and U.S. producers began restoring output after Hurricane Delta. . 

Brent futures fell  $ 1.13 to settle at $41.72 per barrel. WTI futures fell $ 1.17 to settle at $39.43 per barrel.

Production in Libya is expected to rise to 355 kbpd after force majeure at the Sharara oilfield was lifted on Sunday.

Hurricane Delta, which inflicted the biggest blow in 15 years to energy production in the U.S. Gulf of Mexico last week, was downgraded to a post-tropical cyclone at the weekend.

Prices were also pressured by a jump in new COVID-19 cases, which has raised the spectre of more lockdowns which could dampen demand for oil. Infections are at record levels in the U.S. Midwest. In Europe, Britis.

covid 19

At a global level, the death toll from the COVID-19 virus rose to 1,085,151 (+3,756 DoD) yesterday. The total number of active cases rose by around 40,000 DoD to 8.35 million.  (Click here for details).


No fresh news on the naphtha markets.

The November crack is higher at $ 2.95 /bbl


Asia’s gasoline crack fell for a fifth straight session on Monday and hit a fresh one-month low of $3.18 a barrel, as supplies were ample.

Stronger demand in India failed to lift the value as China’s gasoline exports are expected to stay high. Over in India, its September sales of gasoline, or petrol, rose by 3.3% from a year earlier to 2.45 million tonnes, and by 2.9% from 2.38 million tonnes in August..

The November crack is lower at $ 3.50 /bbl

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


Asia’s jet fuel cracks fell on Monday to hit a three-session low of about $4.18 a barrel, with the contract remaining under pressure as air travel is persistently hammered by the pandemic.

India’s diesel consumption in the meantime rose 13.2% to 5.49 million tonnes last month from 4.85 million tonnes in August. However, on an annual basis, India’s demand for diesel declined about 6%.

The November crack for 500 ppm Gasoil is lower at $3.25 /bbl with the 10 ppm crack at $ 4.05 / bbl. The regrade is at   -$ 1.90 /bbl. 

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

Fuel Oil

Cash differentials of Asia’s 380-cst HSFO flipped back to a narrow premium on Monday, lifted by stronger deal value and higher buyer bids in the pricing window. The cash premium fell into negative territory last week amid lower trade liquidity and waning demand.

380-cst cash differentials rose to 19 cents per tonne to Singapore quotes on Monday, up from a 44 cent discount in the previous session.

Meanwhile, the front-month 0.5% VLSFO crack to Dubai crude edged to a more than one-week high of $8.81 a barrel as crude prices weakened.

The November crack for 180 cst FO is higher at – $1.65 /bbl with the visco spread at $1.05 /bbl.

Click Here for a graphical depiction of Fuel Oil stocks by region.

Hedge Recommendations

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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