Crude Oil

Yesterday, we had remarked on the bullish sentiment in the crude oil markets.  This was on display today when, in the absence of any bearish news,  Brent rose by $ 1.16 to settle at $ 56.24/bbl, up 21 cents.  WTI gained $ 1.03 to settle at $ 53.78 / bbl

The market apparently took cues from the positive moves in the stock markets.  If we are to follow this type of thinking, in the absence of any fresh news today the markets should be easing out today because of

  • Technical Correction
  • Profit Booking for the weekend

A significantly stronger USD with USD EUR trading around 1.0650 after having reached 1.0750 a couple of days ago.

On the physical side, it is reported that Russia’s production is slated to be 11.1 mbd as against 11.25 in October.  This means that it has cut production by around 150 kbpd as against 600 kbpd promised by it.  Another red flag for now.

For the bulls, there is a news that Venezuela is unable to deliver oil as it cannot pay for the cleaning of hulls and inspection.  Apparently 2 VLCCs are awaiting loading.


Naphtha prices continued to remain firm and strongly backwardated.  However, the crack collapsed. February is now valued around $1.15 / bbl and March at $ 0.30 / bbl.


On the physical market, Hin Leong appeared as a strong buyer in the market for the last decade of February with Trafigura, who was a buyer for the first half of February emerging as a seller. The February crack is slowly easing at $ 12.75 cents /bbl.

Middle Distillates

The gasoil crack for February improved to $11.70 /bbl. The Regrade however has turned negative at – $ 0.20 /bbl.

The drop in distillate yields may be due to the huge build in stocks over the past two weeks


Fuel Oil

Fuel Oil stocks in Singapore fell by around 200 Tons.  While this may have resulted in a strengthening of the crack just 3 weeks ago, it appeared to have no effect on sentiment right now.  The February crack fell further in value to – $ 3.20 /bbl and March to – $ 3.75 /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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