Crude markets moved around a bit as traders placed bets on the basis of this hike. But all in all, markets from here on to the year end will be thin. Brent fell by $ 0.29 / bbl to settle at $ 55.21/bbl while WTI gained $ 0.22 / bbl to settle at $ 52.12 / bbl. The rise may have something to do with the expiry of the prompt future which happens today.
There appears to be some strong demand for Naphtha cargos in the prompt and that has lifted the spot crack.
The January crack is showing a value of -$0.8 /bbl
Gasoline too showed some strong demand going into the year end.
The January crack rose to around $11.5 / bbl.
Middle distillates continued to remain firm. Indian demand for November has shown an impressive growth of 10% year on year. The January crack is currently valued at $ 11.70 /bbl.
The regrade continues to slip. The value for January was at a level of $ 1.20 /bbl.
Fuel Oil prices seemed to be firm with some small signs of profit taking.
The crack levels are virtually unchanged from yesterday with the January crack being valued at -$0.80 and February at -$ 1.6 /bbl. Refiners with exposure in fuel oil need to keep monitoring this crack as a down turn in this crack presents a big risk to them.
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.