Oil prices were stable at current levels. Brent rose by 13 cents to close at $ 56.22/bbl. WTI gained a similar $ 0.16 / bbl to settle at $ 54.06 / bbl.
The API reported stock levels as follows
Crude +4.2 Million Barrels
Gasoline – 2.8 Million Barrels
Distillates – 1.7 Million Barrels
Interpretation of this data is a bit difficult. On the one hand crude stocks are rising. On the other hand, product stocks are falling. This should call for a greater consumption of crude. One logical conclusion that could be drawn is that supply is at incredibly high levels this month.
The official report from the EIA will be released today. Market expectations are as follows
Crude – 2.1 Million Barrels
Gasoline + 1.3 Million Barrels
Distillates + 1.8 Million Barrels
The Naphtha physical crack to hover around the previous levels. However, physical supplies weighed on the market. The January crack fell in value to around -$ 0.5 /barrel.
The gasoline market stayed firm (arguably with the draw in US inventories with the January crack valued at around $ 13.3 / bbl
The gasoil crack for January continued to show firmness . The January crack was valued at $ 11.80 / bbl with the regrade constant at $ 1.50 / bbl
Physical Fuel Oil prices appeared to be slightly stronger in a thin market. Traders expect bad weather to delay the arrival of further supplies from the west. The crack was nearly unchanged at -$1.40 /bbl for January and -$2.2 for February.
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.