Morning Oil Report
Good morning all. Brent futures fell 33 cents, or 0.8% to $43.74 a barrel by 6:30 am GMT, while WTI futures were down 35 cents, or 0.9% at $41.02 a barrel.
US commercial crude inventories declined by a larger-than-expected 9.4 million barrels for the week ended August 28, but this was offset by a bearish 4.1% drop in total finished motor gasoline supplied to 8.79 million barrels, EIA data showed on September 2.
A seasonal drop off in gasoline demand at the end of the US driving season as well as the start of scheduled refinery maintenance, and continued weakness in global refining margins are likely to further contribute to a drop in refinery runs and demand for crude, analysts said.
Elsewhere, according to Reuters reports the volume of crude arriving in China, the world’s largest oil importer, is set to slow in September after rising for five months as its refiners gradually digest bloated inventories.
On the supply side, Iraq’s oil exports slipped to a five-year low of 3.02 million b/d in August, according to a Platts report. While the Iraqi oil ministry has not yet reported August production numbers, the lower export figures suggest an improving compliance with OPEC+ production cuts. However, the market became concerned about the risk of higher global supply after the country’s oil minister, Ihsan Ismaael, said that Iraq will request for two additional months to compensate for earlier overproduction, in the OPEC+ monitoring committee meeting on September 17. Iraq has previously pledged to make extra compensation cuts of 400,000 b/d in August and September to make up for earlier overproduction, indicating an effective production quota of 3.404 million b/d for these two months.
Further towards the end of September analysts are expecting markets to become more cautious after the reports that Iraq was getting wobbly on its commitments under the OPEC+ agreement in addition to signs of slowing oil demand amid the annual refinery maintenance period and end of the driving season.
MARKETS NEWS:
* Mexico Likely to Trim Pemex 2021 Output Goal, Lawmaker Says
* CHINA TANKER TRACKER: Aug. Shipments Slide as Fuel Demand Slows
* Chevron Working to Restore Ops at Gulf Genesis Oil Platform
* Argentina’s Diesel Demand Restored, Gasoline at 60% Pre-Virus
* Brazil Diesel Demand Surpasses, Gasoline Lags Pre-Virus Levels
* Benchmark Oil Supertanker Earnings Fall to Lowest Since May 2018
OTHER NEWS:
* Tanker With 2 Million Barrels Oil Catches Fire Off Sri Lanka
* ZenRock’s Clean Fuel Traders, Operators to Join Rex Commodities
* Back to School Means Back to Traffic Jams on England’s Roads
* Russia to Hold Naval Exercise in Mediterranean Amid Tensions
PHYSICAL CRUDE NEWS:
* ASIA: UAE’s GP Global Shuts; IOC-Booked Ship Catches Fire
* LATAM: Brazil Diesel Sales Top Pre-Virus; Pemex Output
* US/CANADA: China Is Top U.S. Crude Buyer for Third Month
* NSEA: Vitol Offers Forties Again; Aug. Flows to Asia Fall
* MED: Rosneft Awards Term Tender; Hellenic Buys KBT
* WAF: Unipec Sells Antan to BP; Okwori, Jubilee Offers
OIL PRODUCT NEWS:
* U.S.: Farmers Get Lift at Pump; Refinery Restarts
* EUROPE: ICE Gasoil Crack Slumps; Tankers Skip NY
* ASIA: Singapore Diesel, Jet Stocks at 9-Year High
ECONOMIC EVENTS: (Times are London.)
* 6:00pm: Baker Hughes U.S. Rig Count
* 6:30pm: ICE Commitments of Traders report
* 8:30pm: CFTC Commitments of Traders report
OTHER FINANCIAL MARKETS:
* Asia Stocks Drop; Nasdaq Futures Continue Slide: Markets Wrap
(Bloomberg News/Data)
Singapore 380 INDIC
Oct20 252.75 / 254.75
Nov20 254.25 / 256.25
Dec20 255.75 / 257.75
Jan21 257.75 / 259.75
Feb21 259.75 / 261.75
Mar21 261.75 / 263.75
Q4-20 254.25 / 256.25
Q1-21 259.75 / 261.75
Q2-21 265.25 / 267.25
Q3-21 269.50 / 272.50
CAL21 266.50 / 272.50
Rotterdam 3.5% INDIC
Oct20 241.00 / 243.00
Nov20 240.25 / 242.25
Dec20 240.50 / 242.50
Jan21 242.25 / 244.25
Feb21 244.00 / 246.00
Mar21 245.75 / 247.75
Q4-20 240.75 / 242.75
Q1-21 244.00 / 246.00
Q2-21 248.75 / 250.75
Q3-21 252.00 / 255.00
CAL21 248.50 / 254.50
Singapore VLSFO 0.5% INDIC
Oct20 313.25 / 318.25
Nov20 316.00 / 321.00
Dec20 318.75 / 323.75
Jan21 321.50 / 326.50
Feb21 324.00 / 329.00
Mar21 326.50 / 331.50
Q4-20 316.00 / 321.00
Q1-21 324.00 / 329.00
Q2-21 331.00 / 337.00
Q3-21 337.00 / 343.00
CAL21 335.25 / 341.25
Rott VLSFO 0.5% INDIC
Oct20 292.00 / 297.00
Nov20 295.00 / 300.00
Dec20 298.00 / 303.00
Jan21 301.75 / 306.75
Feb21 305.25 / 310.25
Mar21 308.50 / 313.50
Q4-20 295.00 / 300.00
Q1-21 305.00 / 310.00
Q2-21 313.75 / 319.75
Q3-21 321.25 / 327.25
CAL21 319.00 / 325.00
Sing 10ppm GO INDIC
Oct20 46.90 / 47.04
Nov20 47.44 / 47.64
Dec20 47.99 / 48.19
Jan21 48.53 / 48.73
Feb21 49.10 / 49.30
Mar21 49.66 / 49.86
Q4-20 47.40 / 47.70
Q1-21 49.05 / 49.35
Q2-21 50.66 / 50.96
Q3-21 52.05 / 52.35
CAL21 51.11 / 51.51
ICE Gasoil 10ppm INDIC
Oct20 351.20 / 353.20
Nov20 356.53 / 358.53
Dec20 361.33 / 363.33
Jan21 366.72 / 368.72
Feb21 371.83 / 373.83
Mar21 375.65 / 377.65
Q4-20 356.35 / 358.35
Q1-21 371.40 / 373.40
Q2-21 382.48 / 384.48
Q3-21 396.30 / 398.30
CAL21 391.88 / 393.88
Rott Hi5 Sing Hi5
Oct20 52 62
Nov20 56 63
Dec20 59 65
Jan21 61 65
Feb21 63 66
Mar21 64 66
Q4-20 56 63
Q1-21 63 66
Q2-21 67 68
Q3-21 71 69
CAL21 71 69
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