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Daily Market Report

International Trade & Risk Management Friday, 09 September 2016
Market Commentary
Crude Crude oil futures surged on Thursday after data showed a massive drop in U.S. oil stockpiles,
Front Month Futures ($/bbl) reflecting the impact of an Atlantic storm which threatened the Gulf Coast refining hub last
week.
NYMEX WTI 47.62 2.12 Gasoline consumption in the first half of 2016 averaged 9.3 mnbpd, an increase of 2.5% y/y
compared to same period last year. Consumption is expected to increase an additional 171
ICE Brent 49.99 2.01 kbpd to 9.33 mnbpd in 2016, surpassing the previous high of 9.29 mnbpd set in 2007.
The ECB held interest rates at record lows and kept the door open to more stimulus on but
Spot ($/bbl) gave few hints about its next move, disappointing markets that had priced in a decisively
dovish tone.
Dated Brent 49.32 2.52
China's crude imports rose to their second highest level ever in Aug16 at 7.8 mnbpd, as
Dubai 44.81 1.10 independent refiners continued their buying of low priced crude before their import quotas
expire in Dec16. Separately, refined oil product exports rose 19.3% y/y to 3.71 MMT,
Tapis 50.24 1.10 compared with 4.57 MMT in Jul16.
China has finished construction of 19 mn barrels of new crude tanks in Aug16 for its state
crude oil reserves in Aoshan Island and expects to begin filling them later this year reflecting
Products (Spot) roughly 3 days of import requirements.
Russias daily oil production approached close to 11 mnbpd in the period of 1-7 Sep. For the
Singapore ($/bbl) month of Aug16 output averaged 10.71 mnbpd, lower than the 10.85 mnbpd produced in
Jul16.
Naphtha 43.14 1.11
EIA weekly inventory data (million barrels)
Gasoline 57.10 2.46 2-Sep w/w y/y 2-Sep w/w y/y
Crude 511.4 -14.5 53.4 Distillate 158.1 3.4 7.2
Jet/Kero 56.06 1.10 Gasoline 227.8 -4.2 13.2 Runs (%) 93.7 0.9 1.5

Gasoil 55.96 1.28

Bullish

Major OPEC and Non OPEC producers discussing to take action to stabilize oil markets
FO 180 ($/T) 261.12 5.38 Bullish EIA weekly inventory data
Increase in China Crude oil imports in Aug16
ECB held interest rates low
Spot Cracks Bearish
Talks on possibility of rate hike by US Fed
Singapore against Dubai ($/bbl) Expectation of higher exports from Russia, Iran and Iraq
Naphtha -1.67 0.01

Gasoline 12.29 1.36

Jet/Kero 11.25 0.28

Gasoil 11.15 -0.10

FO 180 -3.69 -0.25

Refining Margins
Dubai - Singapore ($/bbl)

Crack 6.10 5.23# 3.89@

Hydro 1.70 1.15# 0.11@

# 15 days average / @ Previous Month

Freight
World Scale - AG East

VLCC TD3 34 -0.4

Aframax-TD8 62 0.1

Clean MR TC5 98 -1.9

All prices are closing prices of last business day. Price source: Platts, Reuters, indications from counterparties. Market information source: Reuters, Bloomberg, counterparties, shipping brokers. While
due care has been exercised in preparation of this communication it is advisable to reconfirm the information while taking any decision due to unexpected errors / inherent volatile nature of markets.