Oil was little changed on Friday and logged a first weekly decline since April as new U.S. coronavirus cases spiked, stoking fears of a second wave of the virus hitting fuel demand.
Brent futures rose 18 cents to settle at $38.73 a barrel. WTI crude fell 8 cents to settle at $36.26 a barrel.
Both benchmarks logged weekly declines of about 8%, their first after six weeks of gains that have lifted prices off April lows.
With about half a dozen U.S. states reporting spikes in new infections, fears that the coronavirus pandemic may be far from over has brought the rally to a halt. At the same time, U.S. crude oil inventories have risen to a record 538.1 million barrels, as cheap imports from Saudi Arabia flowed into the country.
About 123 KB/D of crude production came back online in the Gulf of Mexico from 11-12 Jun’20, according to daily updates from the US BSEE. After a peak of 636 KB/D was shut in, 120 KB/D remained down, or 6.49% of total US Gulf oil production.
China’s industrial output expanded 4.4% YoY in May’20, lagging its forecast, while retail sales fell 2.8% YoY, more than predicted, official data showed on Monday.
US energy firms cut 7 oil rigs in the week to 12 Jun’20 to total 199 (-589 YoY), the lowest since Jun’09, the 6th week in a row the US count fell to a fresh record low, according to Baker Hughes.
Money managers raised their net long US crude futures and options positions by 105 contracts to total 401,121 in the week to 9 Jun’20, the US CFTC said on Friday.
At a global level, the death toll from the COVID-19 virus rose to 435,181 (+3,263 DoD) yesterday, with the total number of confirmed infections at 7,984,169 (+123,645 DoD). (Click here for details).
Asia’s naphtha refining margin rose for a third day to reach a four-session high of $54.83 a tonne on Friday as strong demand for spot cargoes persisted.
The July crack is lower at -$1.00 / bbl.
Asia’s gasoline crack was at a one-week low of $1.51 a barrel premium over Brent crude. Stocks in Europe and the United States were high despite lockdown measures being gradually eased.
Gasoline stocks at ARA edged up 0.2% to hit a fresh high of 1.4 million tonnes in the week to Thursday.
The July crack is higher at $2.45 /bbl.
Click Here for a graphical depiction of Global Gasoline stocks by region.
Cash discounts for jet fuel narrowed to 49 cents a barrel to Singapore quotes on Friday, compared with 52 cents a barrel on Thursday.
Gasoil stocks in ARA rose 3.3% to 2.85 million tonnes in the week to June 11. ARA jet fuel inventories climbed 3.7% to 902,000 tonnes. Compared with a year earlier, jet fuel stocks were 8.4% higher, while gasoil inventories were down 4.6%.
The July crack for 500 ppm Gasoil is higher at $5.60 /bbl with the 10 ppm crack at $ 6.45 / bbl. The regrade is at -$ 2.85 /bbl.
Click Here for a graphical depiction of Global Distillate stocks by region.
Asia’s 180-cst HSFO prompt-month time spread fell back into negative territory. The balance of June/July 180-cst HSFO time spread fell to a contango of minus $3.25 a tonne on Friday, down from a premium of 75 cent per tonne in the previous session and minus $2 per tonne at the start of the week.
Fuel oil stocks in ARA slipped 2% from the previous week to 1.712 million tonnes in the week to June 11.
The July crack for 180 cst FO is lower at – $2.05 /bbl with the visco spread at $1.40 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
No fresh action for today.
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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.