FIS Fuel Oil Morning Report 22/06/2020

Brent crude fell 10 cents, or 0.2%, to $42.04 a barrel by 0655 GMT, while U.S. crude was at $39.72 a barrel, down 11 cents, or 0.3%. Both contracts rose about 9% last week and Brent crude futures have flipped into backwardation, so that oil for immediate delivery costs more than that to be provided later, usually an indication of tightening supply. In Canada and the United States, the number of operating oil and natural gas rigs fell to a record low last week, even as higher oil prices prompt some producers to start drilling again. U.S. oil rigs fell 10 to 189 this week, their lowest since June 2009, while gas rigs dropped by three to 75, their lowest on record according to data going back to 1987. That being said Asian refiners may have hit a brick wall in their recovery from the virus-driven slump with the rebound in fuel demand not big enough to clear a glut built up over the last few months. Processors are unlikely to increase operating rates much further until the surplus is cleared and margins improve.

MARKETS NEWS:
* Brent Timespreads Show Oil Market Is Rebalancing Quickly: Chart
* Asian Buyers Turn to U.S. Oil Amid Uncertain Flows From OPEC
* Shanghai Exchange Starts Low-Sulfur Fuel Oil Futures Contract
* The Big Oil Turnaround: From Negative Prices to a Bull Market
* Oil Bulls Retreat as U.S. Sun Belt Struggles With Covid: Chart
* Lockdown Cuts India’s May Oil Imports to Lowest in Five Years
* Saudi Oil Minister Sees ‘Encouraging Signs’ of Demand Recovery
* ASIA-AMERICAS FUEL: Shipments Dry Up, No New Bookings This Week
* Oil Companies Shutting Off Drilling Rigs Across U.S. Shale

OTHER NEWS:
* A Third of U.S. Shale Near Technical Insolvency, Deloitte Says
* End of Venezuela’s Oil Fortune Looms Over Maduro’s Regime
* What to Watch in Commodities: Virus, Oil, Gold, Tyson, Coal, IMF

PHYSICAL CRUDE NEWS:
* ASIA: Fuji Oil Buys Oman for August; Basrah Heavy Trades
* LATAM: Venezuela Oil Fortune Dries Up; Petroecuador Avgas
* US/CANADA: California’s Dirty Crude; Rigs Drop
* NSEA: Totsa Withdraws 4 Bids; Flows From U.S. to Decline
* MED: Totsa Offers Baltic Urals in Med; U.S. Flows to Fall
* WAF: Nigeria’s Unsold Backlog Persists; Rare Vietnam Cargo

OIL PRODUCT NEWS:
* ASIA: Clean Fuels Stored at Sea Near Singapore Dips
* EUROPE: Shell Pernis Work; Unipec Sells Jet Again
* U.S.: Valero Trims McKee Refinery Rates on Outbreak

ECONOMIC EVENTS: (Times are London.)
* 3pm: U.S. existing home sale

OTHER FINANCIAL MARKETS:
* Stocks Largely Higher With Low Conviction; Gold Up: Markets Wrap

Rotterdam 3.5% INDIC                                 

Jul20      231.25   /             233.25

Aug20   229.75   /             231.75

Sep20    226.50   /             228.50

Oct20    223.75   /             225.75

Nov20   223.00   /             225.00

Dec20    223.75   /             225.75

Q3-20    229.00   /             231.00

Q4-20    223.50   /             225.50

Q1-21    226.75   /             228.75

Q2-21    229.50   /             232.50

CAL21    229.25   /             235.25

 

Singapore 380 INDIC                                     

Jul20      236.75   /             238.75

Aug20   240.50   /              242.50

Sep20    241.50   /             243.50

Oct20    242.25   /             244.25

Nov20   243.25   /             245.25

Dec20    244.50   /             246.50

Q3-20    239.50   /             241.50

Q4-20    243.25   /             245.25

Q1-21    246.75   /             248.75

Q2-21    248.50   /             251.50

CAL21    248.25   /             254.25

 

Rott VLSFO 0.5% INDIC                                 

Jul20      290.00   /              296.00

Aug20   294.75   /              300.75

Sep20    298.75   /              304.75

Oct20    301.75   /              307.75

Nov20   304.50   /              310.50

Dec20    306.75   /              312.75

Q3-20    294.50   /              300.50

Q4-20    304.50   /              310.50

Q1-21    312.50   /              318.50

Q2-21    318.50   /              326.50

CAL21    322.25   /              330.25

 

Singapore VLSFO 0.5% INDIC                                     

Jul20      305.50   /              311.50

Aug20   312.00   /              318.00

Sep20    317.25   /              323.25

Oct20    321.25   /              327.25

Nov20   324.25   /              330.25

Dec20    327.00   /              333.00

Q3-20    311.75   /              317.75

Q4-20    324.25   /              330.25

Q1-21    332.75   /              338.75

Q2-21    340.75   /              348.75

CAL21    343.50   /              351.50

 

Sing 10ppm GO INDIC                                   

Jul20      48.33     /              48.47

Aug20   48.05     /              48.25

Sep20    48.35     /              48.55

Oct20    48.69     /              48.89

Nov20   48.96     /              49.16

Dec20    49.24     /              49.44

Q3-20    48.20     /              48.50

Q4-20    48.92     /              49.22

Q1-21    49.91     /              50.21

Q2-21    50.88     /              51.18

CAL21    51.20     /              51.60

 

ICE Gasoil 10ppm INDIC                                

Jul20      364.10   /              366.10

Aug20   367.98   /              369.98

Sep20    371.54   /              373.54

Oct20    374.05   /              376.05

Nov20   375.77   /              377.77

Dec20    377.95   /              379.95

Q3-20    367.90   /              369.90

Q4-20    375.93   /              377.93

Q1-21    382.49   /              384.49

Q2-21    389.90   /              391.90

CAL21    393.05   /              395.05

 

                Rott Hi5 Sing Hi5

Jul20      61           71

Aug20   67           74

Sep20    74           78

Oct20    80           81

Nov20   84           83

Dec20    85           85

Q3-20    67           74

Q4-20    83           83

Q1-21    88           88

Q2-21    92           95

CAL21    94           96

 

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