Crude gave up over 1$ / bbl in value as Brent settled at $ 44.75/bbl while WTI settled at $43.41/bbl.
This was in the wake of a report of record production in October casting further doubts on the ability of OPEC to adhere to the proposed controls. IEA reported that global supply in October rose by 800,000 bpd to 97.8 million bpd
It was further abetted by a strong $ rebounding after any downticks on Trump being elected.
Baker Hughes reported an increase of 3 rigs to bring the total number of rigs being deployed to 452
Speculators dropped their net long positions in crude by close to 50,000 lots indicating that belief in the crude market for gains is continuing to lose steam.
The Naphtha market showed strong demand in the Platts window on Friday and this has reflected in not only firmer cracks, but a reduction of the contango which is indicative of continuing demand.
The Gasoline crack continued easing off marginally as stocks in Singapore rose albeit by a very marginal amount. For the immediate future, demand is expected to prop up the crack as the Balikpapan refinery heads into turn around and import demand arising from India. The market today has flipped into backwardation for Dec-Jan.
The crack level is around $10.75 / bbl for December approximately 20 cents lower than Friday
Gasoil softened today as the crack eased to $ 12.30 /bbl. Winson Oil is continuing with its buying.
The Jet Market saw supplies coming out of Essar Oil, India. More supply is expected over the coming weeks.
The fuel oil crack strengthened marginally as the backwardation in the market increased by 50 cents per ton. The value of the December crack is -$ 1.55 /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.