Yesterday was the turn of the naysayers as Crude Oil prices sank like a rock registering the biggest single day decline since September
As we were commenting, OPEC producers continue to find it difficult to reach a consensus on production cuts. This continuing apparent lack of will will make the market even more reluctant to believe a statement of consensus if one is reached today.
In other supportive news, API reported a drop of 717 KB in crude oil inventories against an expected build of 636 KB
Physical Naphtha margins recovered yesterday as the outlook for supplies continues to remain easy for December and January.
The December crack is showing a value of just around $ 1.5 /bbl
The Gasoline crack for December continued to hover just over $11.0 / bbl for December.
The physical gasoil market was relatively quiet yesterday. While Hin Leong and Winson Oil were seen buying, there were plenty of supplies
MRPL was seen offering a jet cargo in the market for late December. However, its failure to offer a gasoil cargo in the same period led traders to suggest that demand in India may be picking up.
However, the gasoil crack for December slipped to under $ 11.0 /bbl
The regrade too showed signs of softening with December being valued at $ 1.85 / bbl and January at $ 1.70 /bbl.
The fuel oil crack continued to strengthen amid persistent demand in the prompt and low crude oil prices. The 180 cst fuel oil crack for December strenghtened further to show a value of around -$ 0.40/bbl. The value for the January crack was at – $ 1.20 / bbl .
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.