The market seems to be a bit wary of such high oil prices especially as they act as a spur to increase supply (and not adhere to production cuts).
While the physical Naphtha crack settled higher yesterday, it seemed to be more in response to demand from gasoline players than naphtha end users.
The Naphtha crack for February is now valued at $1.55 / bbl and March at $ 0.75 / bbl.
Gasoline was actively traded in the window yesterday with Trafigura purchasing a total of 250 Kb.
Gasoline swaps too were actively traded with Vitol being the primary buyer.
The Gasoline crack continues to remain steady. The February crack is valued at $ 13.4/bbl today.
The gasoil crack continues to be steady with February valued $11.45 /bbl. The Regrade was marginally firmeer at $ 0.65 /bbl
Fuel Oil eased a bit with the time spreads falling for Feb-March and March-April suggesting that stocks may be rising shorty. The February crack was valued at -$1.1 /bbl and the March crack slightly lower at -$ 1.60 /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