Crude Oil

Oil prices fell 2% on Thursday on weak US jobless numbers and the continuing surge in coronavirus cases.

Brent crude settled 98 cents lower at $43.31 per barrel, while WTI fell 83 cents to $41.07 a barrel.

The price decline came despite the benefit of a drop in the dollar to a near 22-month low.

The number of Americans filing for unemployment benefits unexpectedly rose last week for the first time in nearly four months.

The US Secretary of State took fresh aim at China on Thursday and said Washington and its allies must use “more creative and assertive ways” to press the Chinese Communist Party to change its ways, calling it the “mission of our time”.

India’s crude oil processing gathered pace in Jun’20, rising 10.9% MoM to 4.29 MB/D, as further easing of coronavirus-led curbs lifted fuel demand. Fuel demand in June extended its recovery from a 13-year low hit in Apr’20, rising 11% MoM.

covid 19

At a global level, the death toll from the COVID-19 virus rose to 635,366 (+6,309 DoD) yesterday, with the total number of confirmed infections at 15,641,987 (+276,000 DoD).  (Click here for details).

U.S. coronavirus cases approached 4 million on Thursday, with more than 2,600 new cases every hour on average – the highest rate in the world.


Asia’s naphtha crack hit a 1-1/2-week high of $79.75 a tonne on Thursday. 

The August crack is higher at $ 0.80 /bbl 


Asia’s gasoline crack rose to a four-session high of $1.30 a barrel, but this remained sharply lower than January’s average of $4.62 a barrel as a new wave of COVID-19 infections slowed its recovery.

The August crack is higher at $2.80 /bbl

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


Asian refining margins for jet fuel eased on Thursday, weighed down by lingering concerns over aviation demand. Cracks for jet fuel were at $2.03 a barrel over Dubai crude during Asian trading hours, down 24 cents from a day earlier.

Cash discounts for jet fuel were at a discount of 32 cents a barrel to Singapore quotes on Thursday, compared with 38 cents in the previous session.

The August crack for 500 ppm Gasoil is higher at $6.40 /bbl with the 10 ppm crack at $ 7.20 / bbl. The regrade is at   -$ 4.20 /bbl.

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

Fuel Oil

The Aug/Sept VLSFO time spread rose to $1 per tonne, up from 25 cents a tonne in the previous session and hit its highest since mid-February.

The August crack for 180 cst FO is higher at – $3.15 /bbl with the visco spread at $0.70 /bbl.

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

Hedge Recommendations

We will hedge the August Jap-Naphtha crack at +$0.80 /bbl today. We will most probably have to let it settle. Should cracks go even higher, we will hedge the September crack as well. 

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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