Crude Oil
Crude oil prices continued to rise amid strengthening market belief that stocks will rebalance very soon. Brent settled up 31 cents at $55.47 /bbl while WTI rose by 59 cents/bbl to settle at $49.89 /bbl.
The price rise was helped by a weakening dollar which makes purchasing of crude cheaper. This morning, North Korea has fired another missile, this time over Japanese air space. The world cannot help but be concerned of the recent ballistic activity of the country.
Traders expect such events to act as bearish for crude. But today promises to be an interesting day.
Naphtha
Naphtha cracks continue to decline on the back of falling demand for the fuel as a gasoline blending component in Europe and higher availability of prompt cargoes. Europe exports naphtha to Asia among other regions and a fall in demand for naphtha as a gasoline blendstock will lead to higher volumes of naphtha being exported out of Europe.
The October crack is valued lower at $ 2.15 /bbl
Gasoline
Gasoline cracks have managed to recover as stocks fell across the US, ARA and Singapore. Singapore’s onshore light distillates stocks, which comprise mostly gasoline and blending components for the fuel, fell about 4.3 % to a near 2-1/2-month low of 11.23 million bbls in the week to Sept. 13.
October 92 Ron crack is valued higher at $ 11.85 /bbl.
Distillates
Distillate cracks continue to fall even though inventories declined across US, ARA and Singapore. Singapore onshore gasoil and jet fuel stocks slipped by 5 % to a five-week low of 12.762 million bbls.
The October crack is valued lower at $14.15 /bbl. The regrade has improved further to – $ 0.10 /bbl
Fuel Oil
Fuel Oil cracks have continued to strengthen on the back of falling inventories in Singapore. Singapore’s onshore fuel oil inventories fell 11 %, or 449,000 MT, to a total of 3.5 million MT in the week to September 13.
The 180 cst October crack is valued higher at -$1.35 / bbl for September. The visco is valued higher at $ 0.80 /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