Crude Oil

We apologise for our inability to publish the Oil Price Digest yesterday due to unavoidable circumstances

Crude prices rocketed up yesterday to their highest levels since July 2015 as Brent rose by $ 2.16 to settle at $ 59.02/bbl, while WTI gained $ 1.56 to settle at $ 52.22/bbl.

The market appears to believe that rebalancing of crude stocks is indeed taking place after close to 9 months of concerted action by the OPEC and non OPEC producers.

The backwardation in the Brent contract is becoming apparent as the Dec-17 / Dec-18 spread increased by more than a dollar to close at $ 2.21 / bbl

The widening of the WTI – Brent spread is being attributed to the overhang of US production. This value is at multi month highs (since August 2015)


Demand for Naphtha cargoes has pushed the physical settle of the crack to over a seven month high of $ 102.43 /MT. Several buyers bought more than 120 KT of Naphtha for October to November delivery. However, no cash trades were reported in the window.

The October crack  is valued at $ 3.00 /bbl


Gasoline cargoes were traded very actively in the window with 350 KT of product being traded as compared to the daily average of 230 KT for this month.

The October 92 Ron crack is valued today at $ 11.95 /bbl.


Hectic purchases of gasoil cargoes continued yesterday as Hin Leong joined Winson Oil and Unipec in purchasing cargoes.  1.15 million barrels of product were traded.

The October crack is valued at $14.05 /bbl.  The regrade is higher at$ 0.65 /bbl

Fuel Oil

Demand for 380 cSt fuel oil was extremely strong with the backwardation in the front month reaching $ 3/MT.  However, the cracks have eased.

The 180 cst October crack is at -$2.65 / bbl. The visco spread is unchanged at $ 0.80 /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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