Crude Oil
Oil prices fell 1% on Monday on the outlook for increased supply of Iranian crude after France’s president lifted hopes for a deal between Washington and Tehran. Brent crude futures settled 64 cents lower at $ 58.70 /bbl. WTI crude futures settled 53 cents lower at $53.64 /bbl.
Prices fell after French President Emmanuel Macron said preparations were underway for a meeting between Iranian President Hassan Rouhani and U.S. President Donald Trump in the coming weeks to find a solution to a nuclear standoff. US President Trump said Monday he may support extending a credit line “secured by oil,” to help cover Iran’s near-term financial obligations, but sanctions relief remain unlikely as potential negotiations may take place.
Losses, however, were limited by optimism surrounding a U.S.-China trade deal.
Rosneft has put up marine fuel cargos for sale with the euro as the default currency, a tender document showed on Monday, in line with its plan to sell oil products in the single currency instead of the US dollar.
In other news, WTI Midland crude prices at Plains All American Pipeline LP’s Midland terminal spiked this month compared with barrels traded at Enterprise Products Partners LP’s Midland terminal as Plains’ Cactus II pipeline began service, oil traders familiar with the matter said
Naphtha
Asia’s naphtha crack extended losses on Monday, weighed down by a persistent supply glut.
The crack eased to a more than two-month low of $17.35 a tonne, from $20.28 in the previous session.
The September crack is higher at -6.65 / bbl.
Gasoline
Asia’s gasoline crack was also down, falling from $6.17 a barrel on Friday to a three-week low of $5.58 a barrel.
The September crack is lower at $ 6.05 /bbl
Click Here for a graphical depiction of Global Gasoline stocks by region.
Distillates
Cash premiums for gasoil with 10ppm sulphur content inched up to 32 cents a barrel to Singapore quotes, from 30 cents per barrel on Friday.
Cash premiums for jet fuel were at 10 cents a barrel to Singapore quotes, down from a premium of 15 cents per barrel on Friday.
The regional jet fuel market is pretty well supplied at the moment and additional barrels are expected to hit the market especially from China. China exported 1.38 million tonnes of jet fuel in July, data from the General Administration of Customs showed on Friday. Jet fuel exports from China were about 11% higher last month, compared with 1.24 million tonnes in June, and about 19% up from 1.16 million in July 2018.
The September crack for 500 ppm Gasoil has increased to $ 15.25 /bbl with the 10 ppm crack at $ 16.10 / bbl. The regrade is at + $ 0.55 /bbl
Click Here for a graphical depiction of Global Distillate stocks by region.
Fuel Oil
Asia’s high-sulphur fuel oil firmed on Monday amid expectations of limited near-term supply. Despite an absence of physical trade activity in the Singapore trading window, 380-cst HSFO cash premiums rose for a fourth straight session due to stronger buying interest. Similarly, the front-month 380-cst HSFO time spread and barge crack to Brent crude also firmed. The 380-cst Sept-Oct time spread climbed to a more than three-week high of $29.50 a tonne, up by $3 per tonne from the previous session.
The September 180 cst crack is higher at – 4.50 / bbl with the visco spread at $ 1.70 /bbl.
Click Here for a graphical depiction of Fuel Oil stocks by region.
Hedge Recommendations
No fresh recommendations 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.
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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.