Crude Oil

Oil prices extended their gains on Thursday as market optimism continues for US – China rapprochment. Brent crude futures rose 50 cents to settle at $61.67 a barrel. WTI crude futures rose 26 cents to settle at $56.23 a barrel..

U.S. Vice President Mike Pence accused China of curtailing “rights and liberties” in Hong Kong in a wide-ranging critique of Beijing’s behavior but also insisted that the United States does not seek confrontation or to “de-couple” from its main economic rival. Pence delivered his second major policy address on China in just over a year, this one just ahead of a new round of talks aimed at resolving a bitter trade war between the world’s two biggest economies. The recent truce in the U.S.-China trade war is not an economic turning point and has done nothing to reduce the risk that the United States could slip into recession in the next two years.

In the latest sign of economic weakness, employment in Germany’s private sector fell for the first time in six years in October, a survey showed.

Rosneft has fully switched the currency of its contracts to euros from US dollars in a move to shield its transactions from US sanctions, its Chief Executive said on Thursday, in a move that is unlikely to have an impact on the Russian currency market


Asia’s naphtha crack fell to a four-session low of $85.23 a tonne.

The November crack is lower at – $ 2.90 / bbl.


Asia’s gasoline crack hit a 1-1/2 month low of $6.13 a barrel, dragged down by massive exports from China.

Singapore’s onshore light distillates stocks hit a six-week high of 11.03 million barrels, official data showed.

More than 326 KT of gasoline arrived in the week to Wednesday from China. This is the largest weekly quantity from China since the week of Aug. 15-21. 

The November crack is higher at $ 6.80 /bbl

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


Cash premiums for 10ppm gasoil  inched up $1.06 a barrel to Singapore quotes on Thursday, 4 cents higher from Wednesday.

Cash differentials for jet fuel  remained unchanged at a discount of 8 cents a barrel to Singapore quotes on Thursday.

Singapore’s onshore middle distillates stocks rose by 1.35 million barrels to 10.84 million barrels, official data showed.

The November crack for 500 ppm Gasoil is higher at $ 16.90 /bbl with the 10 ppm crack at $ 17.90 / bbl. The regrade is at  + $ 0.20 /bbl 

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

Fuel Oil

Asia’s 380-cst high-sulphur fuel oil firmed on Thursday, with prompt backwardation and cash premiums climbing to their highest in more than three weeks, propped up by tight supplies of the soon to be less demanded fuel.

Tight supplies and limited arbitrage inflows of the so far mainstay bunker fuel have helped keep premiums of the fuel elevated. The 380-cst cash premium rose to $44.79 per tonne above Singapore quotes, up from $40.55 per tonne in the previous session and its highest since Sept. 30.

The 380-cst HSFO Nov/Dec time spread was also higher, trading at $31.50 a tonne, up by $1.50 a tonne from the previous session its highest since Sept. 30.

Singapore’s onshore residual fuel stocks snapped a fortnight of rising stockpiles to hit a three-week low of 20.81 million tonnes in the week ended Oct. 23, according to official data. 

The November 180 cst crack is higher at -$  14.30 / bbl with the visco spread at  $ 2.15 /bbl.

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

Hedge Recommendations

Cal 20 Jet Dubai has risen above $ 19.00 /bbl. We will recommend a hedge at this level for 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 refiner.

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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