Crude Oil
Crude prices retreated from last week’s highs on Monday. Brent settled 34 cents lower at $ 55.14/bbl, while WTI ended 43 cents lower at $ 49.48/bbl
The easing could be due to profit taking ahead of Friday’s OPEC meet to review the production cut status as also DOE data expected tomorrow.
API Data
The API report was rather bullish as crude inventories rose less than expected and product inventories drew more than expected as below
Actual Expected
Crude +1.4 +2.9
Gasoline -5.1 -2.0
Distillates -6.1 -1.2
The market will be awaiting the official EIA figures later today.
Naphtha
The high crude prices dragged down the Naphtha crack yesterday. However, demand for Naphtha cargoes is still very strong and deals appear to be being struck at premiums of $2-3 /MT as compared to $ 1.0 -1.5 /MT earlier in the month.
The October crack is valued slightly lower at $ 2.60 /bbl
Gasoline
The Gasoline crack settled lower for the 6th day in a row as more refineries resumed operations post the hurricanes. October 92 Ron crack is valued slightly lower $ 12.25 /bbl.
Distillates
The arbitrage from the East to Europe is still open and premiums for low sulphur diesel are going on rising.
The jet fuel shortage in New Zealand due to the shutdown of a supply pipeline at Auckland continues causing severe disruption of flights. Over 39 flights were cancelled yesterday. This shortage comes a few days before Saturday’s general election in New Zealand where infrastructure is a hot issue.
The October crack is back to previous leevls today at $14.20 /bbl. The regrade is marginally weaker $ 0.15 /bbl
Fuel Oil
Fuel Oil time spreads as well as cash premiums eased as it was offered down in the window yesterday.
The 180 cst October crack is valued lower at -$1.60 / bbl. The visco spread is lower 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