Fed discusses tapering bond purchases, but remains tight-lipped on timing
The Fed statement was slightly more hawkish, as “progress” has been made towards the targets of maximum employment and price stability. In the press conference that followed the meeting,…
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.