OIL: Oil Products Summary At US Close: Cracks Slightly Lower
Jan-02 19:37
Oil Products Summary At US Close: Cracks Slightly Lower
Cracks are slightly lower on the day as the market digests Singapore/ARA oil product data.
- US ULSD crack down 0.1$/bbl at 31.58$/bbl
- US gasoline crack down 0.5$/bbl at 14.11$/bbl
- US 321 crack down 0.4$/bbl at 19.93$/bbl
- EU Gasoil-Brent up 0$/bbl at 21.01$/bbl
- EU Gasoline-Brent down 0.5$/bbl at 10.81$/bbl
- European ARA Gasoil stocks fell slightly last week to hold just below the seasonal five-year average, according to the latest Insights Global data cited by Bloomberg. Gasoline stocks rose w/w to now stand above seasonal normal levels.
- Singapore oil product stocks rose by 2.1m bbl to a 10-week high of 50.5m bbl in the week to Dec. 31, according to government data cited by Bloomberg.
- At least three tankers carrying Russian crude are indicating Reliance Industries’ plant on India’s west coast as their next destination, according to Bloomberg.
- Hindustan Petroleum will start to produce about 10k tons a year of sustainable aviation fuel at its Visakhapatnam refinery from January 2027, oil minister Hardeep Puri said.
- Sanctions targeting Russian oil giants are forcing a reconfiguration of Europe’s refining sector, with roughly 765k b/d, or 6% of the region’s capacity under pressure, according to Kpler.
- Ukrainian drones have targeted the Samara Oblast in Russia overnight and there is some suggestion that refineries in the area, including Novokuibyshevsk and Kuibyshevsk, may have been hit.
- Ukraine’s General Staff said on Thursday that it had hit the Ilsky oil refinery in Krasnodar Krai on the night of Dec. 31-Jan. 1.
- VLSFO demand at European ports is likely to fall in 2026, due to decarbonization regulations and sulphur content restrictions, according to Argus.
- The US has granted Serbia’s NIS an operating license until January 23, enabling it to resume production after a 36-day break, the energy minister said on Wednesday cited by Reuters.
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US STOCKS: Late Equities Roundup: Best Levels Since Mid-November
Dec-03 19:37
- Stocks continue to plow higher Wednesday, recovering from early session lows after Microsoft denied a write-up from "The Information" they had lowered "AI software sales quotas". Pretty specific, nevertheless, while market concerns over stretched AI-tied valuations are on full display.
- The Information wrote: "Executives at Microsoft and other enterprise software firms heralded 2025 as the year artificial intelligence would be capable of automating tasks that involve multiple steps, such as generating dashboards based on company sales data. But as the year comes to a close, Microsoft has lowered expectations for how quickly it can get customers to spend money on these newer products, known as agents. Multiple Microsoft divisions, for instance, have lowered how much salespeople are supposed to grow".
- Currently, the DJIA trades up 450.77 points (0.95%) at 47925.84, S&P E-Mini Futures up 27 points (0.39%) at 6867.25, Nasdaq up 57.8 points (0.2%) at 23471.29.
- Information Technology and Utilities sector shares led declines in late trade:
- While chip makers traded strong ahead midday (Microchip Technology +9.75%, ON Semiconductor +8.65%, NXP Semiconductors +5.34% and Cadence Design Systems +4.22%), there was a greater breadth of software laggers: Sandisk Corp -8.28%, Seagate Technology -4.97%, Western Digital -3.25%, Micron Technology -2.89% and Microsoft -1.70%..
- Meanwhile, Southern Co -1.64%, Exelon Corp -1.39%, PPL Corp -1.38%, PG&E -1.01% and Duke Energy -1.00% continued to weigh on the Utilities sector.
- On the positive side, Energy and Financial Services sector shares led advances in the first half:
- APA Corp +4.79%, EQT Corp +4.30%, Expand Energy +3.83% and Targa Resources +3.01%
- Robinhood Markets +5.40%, Fiserv Inc +4.38%, Coinbase Global +4.16%, Blackrock +3.43% and Citigroup +3.17%.
USDJPY TECHS: Corrective Cycle In Play
Dec-03 19:30
- RES 4: 158.87 High Jan 10 and a key resistance
- RES 3: 158.29 2.618 projection of the Sep 17 - 26 - Oct 1 price swing
- RES 2: 158.00 Round number resistance
- RES 1: 156.58/157.89 High Nov 28 / 20 and the bull trigger
- PRICE: 155.08 @ 16:41 GMT Dec 3
- SUP 1: 154.67 Low Dec 01
- SUP 2: 154.42 Low Nov 17
- SUP 3: 153.27 50-day EMA
- SUP 4: 151.54 Low Oct 29
The trend set-up in USDJPY is bullish and recent weakness appears corrective. Note that a deeper retracement would allow a recent overbought condition to unwind. Support at 155.33, the 20-day EMA, has been breached. An extension lower would expose the 50-day EMA at 153.27. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. A resumption of the uptrend would open 158.00.
US: Trump Oval Office Announcement Underway Shortly
Dec-03 19:29
US President Donald Trump is shortly due to make an announcement from the Oval Office. LIVESTREAM The announcement is expected to relate to new fuel economy standards, with executives from Ford, General Motors, and Stellantis in attendance.
- CNBC notes, "The Trump administration will propose rolling back the standards implemented by former President Joe Biden last year, sources told Reuters. Biden required passenger cars and light trucks to have a fuel efficiency of about 50 miles per gallon by 2031."
- The report continues, "The oil industry group the American Petroleum Institute has lobbied the Trump administration to repeal the Biden fuel economy standards, arguing that they aim to phase out liquid fuel vehicles."
- Trump said at a Cabinet meeting yesterday, “We’re bringing back the automobile business," adding, “I think we’ll be bigger than we’ve ever been in the auto business.”
