Good morning all. Brent futures rose by 22 cents, or 0.5%, to $45.21 a barrel, as of 4:41 am GMT. WTI futures rose 32 cents, or 0.8%, to $42.26 a barrel.
Despite the number of COVID-19 case counts worldwide topped 20 million, daily confirmed cases globally have been on the decline for three consecutive days, registering a six-day low of 224,179 cases on August 9, data from John Hopkins University showed. Daily infections in the US have also begun trending downwards and settled below 50,000 cases on August 9, after hitting a peak of 77,255 cases on July 16.
Market sentiment gained a boost from an imminent deal in the US comes after Saudi Aramco said that demand is improving in the company’s second-quarter results call on August 9. US lawmakers continued negotiating on the final details of a second coronavirus fiscal stimulus package after President Donald Trump signed executive orders on weekly unemployment benefits, eviction bans, temporary payroll tax holiday and deferral of student loan payments over the weekend. According to a press release from Treasury Secretary Steven Mnuchin, the deal could possibly be done this week.
Meanwhile, China’s factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre-coronavirus levels, adding to signs of recovery in the world’s second-largest economy.
In a sign demand is starting to recover in the hard-hit jet fuel market, the quantity of commercial flights around the world rose almost 6% in the seven days to Sunday, according to FlightRadar24 data. However, the average number of 67,000 planes in the sky was still below more than 100,000 pre-virus reported by Bloomberg.
US Department of Energy website showed on Monday that energy companies have begun taking back millions of barrels of oil from the US government’s emergency stockpile after renting storage in the facility to help manage a glut of crude this spring after energy demand collapsed during COVID-19 lockdowns.
However, market participants will be looking for fresh cues from the inventory reports by the American Petroleum Institute and the Energy Information Administration on Aug. 11 and 12 respectively. According to Pan Jingyi, market strategist at IG, a bigger than expected draw help WTI prices edge higher above resistance levels.
On the supply side, Norway is set to cut production by 261,000 b/d in September, according to shipping schedules seen by Bloomberg. Still, the contango in Brent’s three-month timespread was $1.04 a barrel, compared with 87 cents at the end of the July, prompting rising concerns about a potential supply glut.
MARKETS NEWS:
* Low Cost Shale Drilling Might Not Boost Oil Production This Time
* Fuel Hacks by Indian Farmers Among Multiple Threats to Diesel
* Norway’s Deep Cuts to Oil Loadings to Curb Atlantic Basin Crude
* Kazakhstan Raises Oil Exports by 0.4% Y/y in January-July
* Canary CEO: Oil Supply Poised For Big Shift in 6-9 Mos. (Radio)
* ASIA-AMERICAS FUEL: August Flows Gain Momentum; Two Ships Added
* U.S. Jet Fuel Imports From Europe Climb to 3-Year High: Customs
* U.S. Gasoline Demand Fell Less Than 1% Last Week: GasBuddy
OTHER NEWS:
* Occidental Posts $6.6 Billion Charge After Oil Price Crash
* Marathon Poised for $1.1 Billion Tax Refund From Coronavirus Aid
* Oil Cleanup Continues Off Mauritian Coast as Liability Probed
* Aramco’s Motiva Set to Reduce U.S. Workforce by 10% by Sept. 1
* Why Climate Action, $40 Oil Create ‘Stranded Assets’: QuickTake
PHYSICAL CRUDE NEWS:
* ASIA: Iraq Forced Into Compliance; U.S.-China Ships Booked
* LATAM: An Operator for the Isla Refinery; Mexico FPSO
* US/CANADA: Shale Job Losses Accelerate, Outlook May Worsen
* NSEA: BP Offers Brent Lower; Litasco Bids Brent, Ekofisk
* MED: Shell Plans Work at Wesseling; CPC Program Due Soon
* WAF: IOC Issues 2nd Tender for Oct.; Bonny Light Margins
OIL PRODUCT NEWS:
* U.S.: Par Pacific Shuts East Refinery in Turnaround
* EUROPE: Fuel Flow to U.S.; Wesseling Work; Fire
ECONOMIC EVENTS: (Times are London.)
* 5:00pm: EIA publishes its monthly Short-Term Energy Outlook
* 9:30pm: API weekly oil inventory report
* CPC loading program for September (tentative)
ANALYST COLUMNS:
* U.S. Crude Stockpiles Seen Falling 8.5M Bbl Last Week: Macquarie
* U.S. Gasoline Demand Steady at 8.828M B/D Last Week: Descartes
* The Pandemic Has Been Mixed for Plastic Demand: BofAML
OTHER FINANCIAL MARKETS:
* Asian Stocks Rise Most in a Week; Oil Advances: Markets Wrap
Singapore 380 INDIC
Sep20 252.00 / 254.00
Oct20 252.75 / 254.75
Nov20 254.50 / 256.50
Dec20 256.25 / 258.25
Jan21 258.25 / 260.25
Feb21 260.25 / 262.25
Q4-20 254.50 / 256.50
Q1-21 260.25 / 262.25
Q2-21 265.75 / 267.75
Q3-21 269.75 / 272.75
CAL21 265.50 / 271.50
Rotterdam 3.5% INDIC
Sep20 243.00 / 245.00
Oct20 241.75 / 243.75
Nov20 241.75 / 243.75
Dec20 242.25 / 244.25
Jan21 244.25 / 246.25
Feb21 246.00 / 248.00
Q4-20 242.00 / 244.00
Q1-21 246.00 / 248.00
Q2-21 250.75 / 252.75
Q3-21 253.75 / 256.75
CAL21 249.00 / 255.00
Singapore VLSFO 0.5% INDIC
Sep20 323.50 / 328.50
Oct20 326.50 / 331.50
Nov20 329.25 / 334.25
Dec20 332.00 / 337.00
Jan21 335.75 / 340.75
Feb21 338.75 / 343.75
Q4-20 329.25 / 334.25
Q1-21 338.75 / 343.75
Q2-21 346.25 / 352.25
Q3-21 353.25 / 359.25
CAL21 349.00 / 355.00
Rott VLSFO 0.5% INDIC
Sep20 305.00 / 310.00
Oct20 308.50 / 313.50
Nov20 311.50 / 316.50
Dec20 314.00 / 319.00
Jan21 318.00 / 323.00
Feb21 321.50 / 326.50
Q4-20 311.25 / 316.25
Q1-21 321.25 / 326.25
Q2-21 329.25 / 335.25
Q3-21 335.75 / 341.75
CAL21 331.75 / 337.75
Sing 10ppm GO INDIC
Sep20 49.71 / 49.85
Oct20 50.08 / 50.28
Nov20 50.45 / 50.65
Dec20 50.83 / 51.03
Jan21 51.31 / 51.51
Feb21 51.79 / 51.99
Q4-20 50.45 / 50.65
Q1-21 51.81 / 52.01
Q2-21 53.14 / 53.34
Q3-21 54.36 / 54.56
CAL21 53.49 / 53.89
ICE Gasoil 10ppm INDIC
Sep20 376.08 / 378.08
Oct20 380.99 / 382.99
Nov20 384.17 / 386.17
Dec20 387.82 / 389.82
Jan21 391.81 / 393.81
Feb21 395.32 / 397.32
Q4-20 384.35 / 386.35
Q1-21 394.54 / 396.54
Q2-21 403.93 / 405.93
Q3-21 414.92 / 416.92
CAL21 408.45 / 410.45