Triple digits fuel prices emerge

Gasoline prices spiked yesterday in Asia, with Singapore’s benchmark 92 RON cracks reaching 17.8 $/b in the spot window (103.7 $/b in total on a FOB Singapore basis) and November cracks above 12 $/b. Strong bids were formulated by trading houses, likely trying to respond to Indian gasoline tenders. Indeed, India is looking for at least 3.7 mb of gasoline by the end of November, as domestic mobility strengthened over the last months. China’s low gasoline exports were also a factor driving the current Asian rally, with only 740 kt per month since Q3. Crude time spreads remained extremely volatile, ahead of December’s expiry, where significant open interest lives on a yearly basis. Indeed, ICE Brent z/z spreads were trading at 9.4 $/b on early Monday, while prompt time spread z/f spiked to 100 cents before going back to 78 cents. Middle-eastern differentials were marginally lifted by the current Chinese crude demand, as Rongsheng refinery primarily needs sour crudes. 

Energyscan oil news
Share this news :

You might also read :

February 4, 2021

Is the best is the enemy of the good?

US economic reports may be too good  for markets as they both tend to fuel inflationary fears and lower the need for a big stimulus…
July 16, 2021

Growth deceleration

Global bond yields continued to decline, with short term interest rates left unchanged by South Korean and Japanese central banks. Equities continued to trade sideways in the…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?