Crude markets were still on the upswing, However, this was pared by news that Libya had reopened some pipelines which had been blocked for a couple of years. Readers may recall that Libya has no commitment to contain production. Brent rose by $ 0.43 / bbl to settle at $ 55.64/bbl while WTI gained $ 0.11 / bbl to settle at $ 52.23 / bbl.
API has reported a draw of 4.2 million barrels in crude, much more than the consensus of a 2.5 million draw.
Gasoline drew 2 million barrels while distillates drew 1.6 million barrels.
These figures will be supportive for crude.
The Naphtha markets were steady yesterday. The January crack was unchanged with a value of -$0.8 /bbl
Gasoline continued to strengthen.
The January crack rose to around $11.9 / bbl.
The gasoil crack for January eased a bit to around $ 11.50 /bbl.
The regrade for January was at a level of $ 1.20 /bbl.
We would recommend hedging the Cal 17 regrade in small amounts
Fuel Oil prices seemed to be ease out as traders booked profit in anticipation of additional supplies hitting the markets by the end of the year.
The crack levels plunged from yesterday with the January crack being valued at -$1.30 and February at -$ 2.2 /bbl.
We would maintain our advice of hedging at least small amounts at these levels, even as far out as Q217 and Cal 17 too.
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.