Crude oil bounced back a little bit amid noise from OPEC members that they will maintain production levels. Yesterday’s DOE draw was mainly in the West coast region which contains regions like Alaska so its impact is regarded as minimal.
Brent settled 49 cents higher at $ 50.47 / bbl while WTI settled 54 cents higher at $ 49.72 / bbl
The Naphtha physical crack is going on making record numbers over the last 6 months as there appears to be strong demand coupled with a drop in supply.
The forward curve appears to have eased out a bit nevertheless. Levels should still be higher than Dubai but not by much.
The gasoline crack too hit its highest level in 5 months.
The crack appears to be in the region of $ 12 / bbl.
Middle distillate cracks continue to perform strongly as well. While stock levels of both gasoil and jet rose by 13 Million barrels in Singapore, high volume trades of gasoil seem to be causing congestion at loading terminals leading to delays.
Going forward, supplies may be seen from IOCLs Paradip refinery.
The gasoil crack is trading at around $ 13.50 / bbl
Regrade continues to slide which does not augur well for jet cracks.
While the fuel oil crack continued to strengthen in the prompt and inventories declined by 403,000 barrels in Singapore, the Fuel Oil crack for November eased considerably today with most players seeing its value at below -$3.00 / barrel.
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.