Crude OilCovid StatsNaphthaGasolineDisitllatesFuel OilHedge Strategy

Oil prices rose yet again as US payroll figures showed .

Brent futures settled up 33 cents, or 0.5%, at $69.20. Brent is up more than 4% on the week.

WTI crude futures settled up 64 cents, or 1%, at $66.85.  WTI has risen more than 5% on the week so far.

Iran’s Goreh-Jask oil pipeline was due to ship its first crude oil in June, with all construction having finished last week, reported.

OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday, OPEC sources said, as producers balance expectations of a recovery in demand against a possible increase in Iranian supply.

UK oil output dropped 10% YoY in 1Q’21 to 990 KB/D, with crude output down 11% YoY at 897 KB/D, ahead of a major summer maintenance shutdown, government statistics showed 27 May’21.

Venezuela’s PDVSA recorded average May’21 crude production of 565 KB/D, 45 KB/D more than the Apr’21 average, according to daily internal production reports reviewed by S&P Global Platts.


At a global level, the death toll from the COVID-19 virus rose to 3.52 Million (+11,643 DoD) yesterday. The total number of active cases rose fell by around 120,000 DoD to 14.63 million. (Click here for details).

The naphtha crack NAF-SIN-CRK  per tonne a day earlier

 Asia’s naphtha crack fell on Thursday after rising for two straight sessions.

Asia’s naphtha crack was assessed at $100.23 per tonne, compared with $101.4 per tonne on Tuesday.

The June crack crack is unchanged at $ 0.45 /bbl

Asia’s gasoline crack inched up amid falling inventories.

The crack edged up to $6.33 per barrel, from $6.32 per barrel on Tuesday.

Singapore’s light distillate inventories, which comprise mostly gasoline and blending components for petrol, fell 39,000 barrels to 12.522 million barrels in the week to May 26, according to Enterprise Singapore data.

The June crack is lower at $8.00 /bbl

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

Asia’s cash differentials for 10 ppm gasoil slipped on Thursday amid lacklustre buying interest for physical cargoes, while Singapore middle distillate inventories dropped to a more than one-year low.

Cash premiums for gasoil with 10 ppm sulphur content dipped to 14 cents per barrel to Singapore quotes, compared with a premium of 18 cents per barrel in the last trading session on Tuesday.

The front-month spread for 10 ppm gasoil, however, remained in a backwardated structure as the spring turnaround season and comparatively lower exports from India and China in recent weeks have helped tighten regional supplies, trade sources said.

Cash differentials for jet dropped one cent further to a discount of 38 cents to Singapore quotes on Tuesday.

The June crack for 500 ppm Gasoil is lower at $6.30 /bbl with the 10 ppm crack at $ 8.10 /bbl. The regrade is at -$ 0.80 /bbl. 

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

Asia’s 0.5% very low-sulphur fuel oil (VLSFO) rose on Thursday, rising away from a five-month low in the previous session, but expectations of steady arbitrage inflows in June continue to dampen sentiment.

The front-month VLSFO crack against Dubai crude also fell to $10.23 a barrel, up from $9.56 a barrel in the previous session which was the lowest since Dec. 23, Refinitiv data in Eikon showed.

Similarly, the VLSFO cash differential narrowed its discount to minus $2.93 a tonne to Singapore quotes, from a near nine-month low of minus $3 per tonne in the previous session.

Onshore fuel oil stocks dropped by 2.09 million barrels, or about 328,000 tonnes, to a nine-week low of 22.88 million barrels, or 3.6 million tonnes, Enterprise Singapore data showed.

The June crack for 180 cst FO is higher at  -$6.80 /bbl with the visco spread at $0.90 /bbl.

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

No fresh action 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 refinery.

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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.

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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