Crude Oil

Oil prices had a mixed close in an uncertain market. Brent closed 38 cents lower at $57.37 /bbl while the December WTI future, which became the front month yesterday, gained 6 cents to settle at $ 51.90 /bbl.

The uncertainty in Kurdistan continues to prevail although supply rose to 288 kbpd yesterday, up from a low of 216 kbpd earlier. The market also would be awaiting the API data late tonight and the DOE data tomorrow to crystalize views on the rebalancing.


The physical crack settled at an eight month high of $ 108.50 / MT yesterday as demand for the product soared. Cash premiums are rising to levels not seen since April this year.

The paper crack for November is higher at $ 3.60 /bbl.


Gasoline cracks are more or less stable with no fresh news hitting the markets.

The November 92 Ron paper crack is slightly lower at $ 11.00 /bbl.


Cash differentials for both gasoil and jet increased ahead of an expected rise in demand for the products in the winter. China’s diesel exports in September fell to their lowest level since January last as domestic demand picked up.

The November gasoil crack is slightly loweer at $ 12.80 /bbl today.  The regrade is valued at $ 0.25 /bbl.

Fuel Oil

The 180 cSt Fuel Oil crack rose to multi week highs yesterday boosted by expectations of lower supplies in the coming months.

The estimate of lower supplies arises out of higher shipping rates which makes it difficult to bring arbitrage cargoes to the East. It is also boosted by lower run rates in key producing countries like Russia and Venezuela

The November 180 cst crack is valued higher at -$2.00 / bbl. The visco spread is unchanged at $ 0.75 /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

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