Crude Oil

Crude oil futures slipped on Monday as investors cashed in some profits from last week’s rally but concerns about Saudi-Iran tensions kept losses in check. Brent crude futures slipped 33 cents to settle at $70.12 a barrel. WTI futures also lost half 33 cents, to end at $65.55/bbl.

The Iraqi oil ministry is carrying out maintenance at SPM-3, one of Iraq’s four single-point moorings in the Persian Gulf. The SPM is connected to key infrastructure in the southern part of Iraq.

Mexico’s proven oil and gas reserves dropped again in 2017, despite a number of new discoveries last year. Proved total oil and gas reserves now stand at 8.484 mb/ d of oil equivalents as of 1 Jan 2018, a drop of more than 7% y/ 


Asia’s naphtha crack started the week lower at $80.53 /MT, easing away from a one-week high in the previous session. The naphtha crack has been supported by tighter supplies and strong demand.

The April crack for Naphtha has dropped to – $ 0.45 /bbl . 


Asia’s gasoline crack was also weaker on Monday, slipping 24 cent to $ 7.52/bbl on Friday, its highest level since Monday. Supplies are still seen as plenty.

The April crack is marginally lower at $ 11.50 /bbl . 


Asia’s cash differentials for gasoil with 10ppm sulphur content rose on Monday due to stronger buying interest, while jet fuel premiums edged slightly lower as winter heating demand receded and thde market waited for the summer travelling season to gather steam. The cash differential of Asia’s 10ppm gasoil rose to 30 cents a barrel to Singapore quotes, up from 28 cents on Friday. Meanwhile, cash premiums for jet fuel fell to 34 cents a barrel to Singapore quotes, compared with 36 cents on Friday

The April gasoil crack is higher at $ 14.95 /bbl with the 10 ppm crack at $ 15.65 /bbl.  The regrade has slipped to $ 0.30 /bbl.  

Fuel Oil

Asia’s prompt-month viscosity spread was unchanged on Monday, holding near a one-week high reached on Friday, amid tighter availability of blendstock supplies and steady demand for utility grades of the residual fuel. The April viscosity spread, the price differential between March 180-cst and 380-cst fuel oil swaps, settled at $8.25 /MT on Monday. Earlier in March, the front-month viscosity spread had risen to $8.50 /MT, its highest levels since May

The April 180 cst crack has dropped to -$ 6.15 / bbl with the visco spread wider at $ 1.35 /bbl

Hedge Recommendations

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.

Today’s status of active recommendations is below.

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

Leave a Comment