Crude prices ended the day marginally higher in anticipation of more draws in the API inventory report. Brent rose by 21 cents to settle at $ 51.87 /bbl while WTI gained 27 cents to close at $47.64 /bbl. The October WTI future, which becomes the front month today settled at $ 47.83 / bbl.
The market did get its expectations fulfilled as API reported a draw in crude. However, with products once again building, the impact may not be particularly bullish. Adding to bearish sentiment was the news of the reopening of Libya’s Sharara field.
The American Petroleum institute, in its weekly report yesterday, said that Oil stocks had dropped by 3.6 million barrels. Gasoline stocks had increased by 1.4 million barrels and distillate stocks built by 2.05 million barrels.
All in all this data has to be regarded as bearish since crude has drawn more or less in line with expectations while products have built when markets were expecting draws.
Naphtha cracks have risen marginally as many buyers from South Korea and Japan emerged in the market looking for first half October cargoes. SK Energy, Hanwha, and JX were among the buyers heard to have either concluded their purchases or in negotiations with sellers.
The September crack is slightly higher at $ 1.65 /bbl
Gasoline cracks remain lackluster as high stockpiles in the US coupled with weak demand are keeping a cap on prices.
The 92RON crack for September has moved lower to $ 12.65/bbl
Distillate cracks have managed to strengthen slightly as traders are expecting an arbitrage opportunity to ship diesel cargoes from Asia and the Middle East to Europe after a refinery fire at Rotterdam. Exxon Mobil Corp said on Monday a fire broke out at its refinery in Rotterdam but clarified there were no injuries and most of the facility remained operational.
The September gasoil crack is down at $ 12.75 /bbl. Regrade has fallen to -$ 0.45 /bbl
The Fuel Oil cracks have remained unchanged today as the market is well balanced.
In other news, UAE’s Adnoc was learnt to have offered up to seven 85,000 to 90,000 mt cargoes of straight-run fuel oil (SRFO) for export from its Ruwais refinery for delivery from mid-September through October. This is higher than the usual five cargoes of SRFO that Adnoc typically offers every month.
The 180 cst crack is unchanged at -$1.55 / bbl for September. The visco spread is also unchanged 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