Global refineries are starting to feel the pinch with the global crude quality issue worsening. Coking margins are getting absolutely hammered as the oil market faces a shortage of heavy sour crude. On the other end, a surplus of gasoline resulting from supply growth from U.S. shale has also destroyed gasoline crack spreads. On a turnaround schedule basis, global refineries hit peak maintenance in March 2019. Following March, there are two new refineries in Asia that were designed to run sour crude. This combined with the fact that OPEC is cutting exports will likely further exacerbate the sour crude shortage issue we are seeing in the market.
In essence, the only thing that’s keeping overall crack spreads from falling apart is the elevated heating oil crack spread. But with coking margins falling so low and not expected to recover anytime soon due to a persistent shortage of sour crude globally, we believe global refinery run cuts will be the only solution.
This week in the commodity market Gold and Silver futures contract closed in loss while Crude Oil futures contracts closed with gains as follows:
GOLD 10 g” (99.9 Pure)
- In the commodity market last week Gold April 2019 futures contract closed at ₹32,167 with the aggregate loss of ₹473.
- This week Gold April futures contract opens at ₹32,124 on Monday
- Gold highest gain ₹207 on Wednesday
- Gold highest loss ₹399 on Thursday
- Week last day of the trading i.e. Friday Gold closed at ₹31,826 with the aggregate loss of ₹341.
SILVER (1 KG)
- Last week Silver May 2019 futures contract closed at ₹38,728 with an aggregate loss of ₹307 only.
- Current week Silver May futures contract opens at ₹38,664 on Monday
- Silver highest gain ₹239 on Tuesday
- Silver highest loss ₹821 on Thursday
- Week last day i.e. Friday Silver closed at ₹38,087 with the aggregate loss of ₹641.
CRUDE OIL (1 BBL)
- Last week Crude Oil Mar 2019 futures contract closed at ₹3,886 with the aggregate loss of ₹87 only.
- This week Crude futures March contract opens at ₹ 3,900 on Monday.
- Crude Oil highest gain ₹81 on Monday
- Crude Oil highest loss ₹23 on Friday
- Week last day i.e. Friday Crude Oil closed at ₹4,038 with the aggregate gain of ₹152 only.