Crude Oil
Crude prices rallied strongly yesterday. Brent settled at $ 51.33 / bbl, up 58 cents on the day. WTI rose by 64 cents to settle at $ 48.77 /bbl.
This price action gives us some good insights into the mindset of the market. A couple of weeks ago, production of 200 kbpd was cut off in Libya due to protests at the Es Sider and Ras Lanuf ports. This did not stop markets in their downward momentum.
The API data continued to show builds in crude as expected. Crude built by 1.9 Million barrels. Gasoline drew by 1.1 million barrels and distillates drew by 2 million barrels. Once again, both draws were largely expected.
Once again, we have some renewed optimism among the bulls in the markets that the production cuts will be extended. We have a fundamental question to ask here. If the cuts will impact prices in the future, why are you making everybody pay high prices today?
Gasoline
The gasoline crack too has strengthened. April is valued at $ 11.5 /bbl. The May – June spread is valued at 35 cents.
Middle Distillates
Fuel Oil cracks recovered a little today. However, the market still seems oversupplied. The current value for the April -$ 4.15/bbl.
About this blog
Disclaimer : All the views are the author’s personal views. These do not constitute an advice to buy or sell any commodity