Crude OilCovid StatsNaphthaGasolineDisitllatesFuel OilHedge Strategy

Oil prices rose on Monday, rebounding from recent losses, on reports that OPEC+ could adjust plans to raise oil production if large consuming countries release crude from their reserves or if the coronavirus pandemic dampens demand.

Brent crude futures rose 81 cents, or 1%, to settle at $79.70 a barrel. WTI crude futures rose 81 cents, or 1%, to settle at $76.75 a barrel.

Japanese and Indian officials are working on ways to release national reserves of crude oil in tandem with the United States and other major economies to dampen prices, seven government sources with knowledge of the plans told Reuters.

At a global level, the death toll from the COVID-19 virus rose to 5.17 Million (+5,828 DoD) yesterday. The total number of active cases fel by 540,000 DoD to 19.39 million. However this seems to be a recalibration from the past few weeks. (Click here for details).

No fresh news today.

The December crack is higher at $ 3.45 /bbl.

No fresh news today.

The December crack is higher at $9.65 / bbl

Click Here for a graphical depiction of Global Gasoline stocks by region.

Asia’s cash premiums for 10 ppm gasoil slipped for a sixth consecutive session on Friday, posting their steepest weekly decline in more than three months, weighed down by ample supplies from India and South Korea.

Cash differentials for gasoil with 10 ppm sulphur content  dropped by a cent to a premium of 44 cents per barrel to Singapore quotes, their lowest since Oct. 14. 

Asia’s cash premiums for jet fuel edged higher on Monday, lifted by stronger buying interest in the physical market. Cash differentials for Jet improved by a cent to a premium of 12 cents over Singapore quotes. The Dec/Jan time spread for the aviation fuel in Singapore widened its backwardation to trade at 21 cents a barrel on Monday

Refining margins or cracks for jet fuel, however, slipped to $9.55 per barrel over Dubai crude during Asian trading hours on Monday, their lowest since Sept. 29. They were at $9.83 per barrel on Friday.

Although several countries have announced various degrees of reopening in recent weeks, a majority of international flights still await further easing for border restrictions to swing back to normal operations.

The December crack for 500 ppm Gasoil is higher $10.05 /bbl with the 10 ppm crack at $ 11.35 /bbl. The regrade is at -$ 0.55 /bbl. 

Click Here for a graphical depiction of Global Distillate stocks by region.

Asia’s 0.5% very low-sulphur fuel oil (VLSFO) time spread and cash premium extended gains on Monday as concerns over tightening supplies and firming demand lifted the market higher.

Despite absent physical trade, the VLSFO cash differential climbed to $9.51 a tonne to Singapore quotes, its highest since February 2020.

Similarly, the front-month VLSFO time spread widened its backwardated structure to a near two-year high of $10.75 a tonne, Refinitiv data showed.

The December crack for 180 cst FO is lower at  -$6.85 /bbl with the visco spread at $1.60 /bbl.

Click Here for a graphical depiction of Fuel Oil stocks by region.

No Fresh trades today.

Hedge recommendations are essentially made for refiners. These are not trading positions as such. The rationale of these positions is to lock in extraordinary levels for the refinery.

Click Here to see how all our recommendations have fared

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

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