API data stated that Crude oil had built by 2.9 Million Barrels, Gasoline by 4.8 million barrels and Distillates by 2.0 Million Barrels. It is the continued build in Gasoline that has to be a matter for significant concern for the bulls.
All eyes will be on the official data released by the DOE today. Expectations in the market (in millions of barrels) are
Crude + 2.8
Gasoline + 0.5
Distillates – 1.0
Naphtha prices were firm and marginally higher as compared to yesterday. February is now valued at $2.20 / bbl and March at $ 1.25 / bbl.
We would reiterate our call to hedge the naphtha crack at these levels especially for March.
High Oil prices appear to have hit Gasoline prices mildly. PTT has been an active seller of both physical cargos as well as swaps in the window. The February crack eased out considerably and is now at $ 12.75 cents /bbl.
Middle distillates were steady with cracks for gasoil marignally higher than yesterday. February is valued at $11.60 /bbl. The Regrade however, slipped marginally to $ 0.40 /bbl.
For now, it appears as the bears have won as Fuel Oil cracks really plummetted in a scenario that has not changed for the last few weeks. The February crack is valued at just under -$ 3.0 /bbl while the March crack is at -$ 3.4 /bblAbout 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