The Baker Hughes rig count continued to rise, a signal that supplies from the US are only going to increase.
The daily candlestick chart continues to show a series of ‘spinning top’ candles, an indication that the market is uncertain about direction. The MACD is slowly moving towards a crossover on the downside, which is regarded as a signal to sell.
The weekly chart suggests that a close below 55 is needed to reverse the uptrend.
Naphtha prices tanked yesterday following reports of a huge rise in gasoline stocks in the ARA region. While the Naphtha fundamentals per se still hold strong for petchem operations, the losses would reflect the reduction in demand for gasoline blending. The March MOPJ crack is valued at $ 1.80 / bbl value. The Singapore crack for March is valued at around $ 0.70 /bbl
The gasoline crack was further buffeted by the increase in Gasoline stocks in the ARA region of the order of 23% to 1.21 Million Tons. The March crack is currently valued $ 12.25/bbl.
Gasoil prices firmed up marginally as traders eye refineries entering into turn around. The demand for jet though, continues to lag severely.
The March crack is valued at $12.5 / bbl with the regrade at -$0.50 /bbl.
Fuel Oil prices too continued to ease as the market seems to be searching for a new equilibrium. March is valued -$ 3.3/bbl and April around -$ 3.7 /bbl.
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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