Sing92 surges, will Singaporean origin cargoes remain competitive?

Sing92 spreads have continued to gain with the prompt gas E/W at the highest levels since early June, while Atlantic Basin spreads have continued to push higher.

This has allowed for Houston to retake Pacific Coast LATAM and Americas into Rosarito, Mexico and Los Angeles CARBOB (via an NJA) across September delivery windows.

While ARA origin vessels now land cheapest into Peru and Ecuador in September delivery windows.

While the Panama Canal Authority has reinstated daily auction booking slots for Regular and Super vessels, transit workability remains a key risk to monitor for further upside for Sing92 spreads and E/W.

Furthermore, Sing92 continues to land competitively across Asia and into Southern and Eastern Africa. Risks to the Bab el-Mandeb southbound flows likewise add support to Sing92 spreads, but given the loss of much of the Atlantic Basin, spreads and E/W may have only limited further upside from here.

The underlying crude market faces uncertainty over the loss of Bab el-Mandeb flows southbound, with threats to Yanbu and the risks to northbound transits through the Suez Canal, supporting further gains in Sing92 spreads and E/W.

Additionally, with the threat of reduced runs in Asia due to a lack of crude and an expected retreat in Chinese refinery utilisation in the coming weeks, Sing92 cracks have continued to remain bid.

About the Author

Nikolas Plonski, our Oil Market Analyst for the Americas at Sparta, brings experience as a trader from Gent Commodity USA trading diesel and jet paper markets. Nikolas then joined Sparta, where he serves as a cross barrel analyst focused on the Americas.
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About Sparta

Founded in 2020, Sparta made waves in the commodity analytics space in March 2022 when it secured a $6m series A investment from Singular. This success then later snowballed into a further $17.5 million in a series A funding round led by the technology venture capital firm FirstMark, with participation from existing shareholder, Singular.

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