Crude oil futures had a fairly indifferent day yesterday. Not withstanding the bullish stock data on Wednesday, Brent lost 7 cents to close at $ 51.74 / bbl. WTI too lost 11 cents to settle at $ 48.75 /bbl.
In the absence of any significant fresh news to spook the markets, this small fall reflects the growing uncertainty in the market about whether a significant rally in crude can be expected and, if so, can be sustained.
In other news, India’s growth in oil demand is expected to slow down to 200 Kbpd this year as compared to 290 Kbpd last year. The drop is largely ascribed to higher prices of petroleum products.
China’s diesel demand is expected to fall by 30 Kbpd this year after falling by 130 Kbpd last year.
The physical market continued to ease with more supplies hiting the markets. However buyers continue to be attracted by the discounts at which cargos are available. The MOPJ crack for April is valued at $ 0.95 /bbl. The Singapore crack for April is at -$ 0.9 /bbl.
Gasoline cracks continued to lose ground today in the wake of product builds both in Singapore albeit small Singapore stocks built by 335 kb to touch 14.22 million barrels. ARA stocks built by 20 Kt to reach 1.18 Million tons.
The April crack is valued at $ 10.4 /bbl.
Strong demand for Fuel oil saw a sharp rebound in Fuel Oil crack levels. The April valued at -$ 3.75/bbl today, a jump of 45 cents over yesterday.
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Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity