Brent crude rose 60 cents or 1.5% to $41.13 whilst WTI was up 68 cents or 1.8% to $38.96. Both contracts rose over 2% on Tuesday.
The market sentiment around crude remains bearish given announcements from BP regarding oil demand and how that may have peaked in 2019, on top of the news that OPEC have revised demand figures downwards as Chinese demand cools off. The drop off in demand was expected by the organization, but the rate of decline was not. COVID-19 continues to depress the oil market with recovery being halted dues to borders still shut and air travel operating at a fraction of its normal levels.
Hurricane Sally made landfall on Tuesday which caused havoc within the Gulf of Mexico with some estimates stating that output may be reduced by 3 million to 6 million barrels over the next 11 days. The heavy rains that are due in the region are also expected to dampen demand as many of the Gulf’s ports close due to rough seas. This is expected to reduce stockpiles, albeit only slightly which is much needed in the current environment of supply gluts, yet according to the API, supplies are falling with a reported 9.5 million barrel draw last week, with gasoline inventories on the increase by around 3.8 million barrels last week.
Iran have showed support for OPEC this week but on the condition that it protects its interests according to Iran’s OPEC governor. The countries OPEC output has halved from levels of 7.5% in 2010 but remains certain that it is in the best interests of the nation. This comes just days before the next OPEC meeting in which it is likely that new quotas will be issued for its members in order to act to stabilize prices.
MARKETS NEWS:
* BP Lifts Veil of Secrecy on Big Oil Trading Profits
* India’s Slumping Oil Imports Ominous for Crude’s Recovery:
Chart
* Vitol Sees Global Oil Stockpiles Shrinking Rapidly: APPEC
Update
* Hurricane Sally Creeps Toward Gulf Coast With Flash-Flood
Threat
* Poseidon Crude at Lowest Since July Amid CHOPS Pipeline Outage
* API Reports U.S. Crude Stockpiles Fell 9.52M Bbl Last Week
* Midwest Gasoline Distant From Storm Climbs to 11-Month High
* North Dakota Oil Production Rose to 1,040,388 B/D in July:
State
* MEXICO TANKER TRACKER: Aug. Loadings Rose 14% Y/Y to 1.35M B/D
* U.S. Gulf Shuts in 497,072 B/D or 26.9% Oil Production: BSEE
* Petrobras Resumes Oil Trading W/ Vitol, Trafigura, Glencore:
Rtrs
* Shale Driller Lonestar Plans Bankruptcy as Part of
Restructuring
* Premier Oil Is in Early Talks on Deal With Chrysaor
OTHER NEWS:
* Bankers Feeding Norway’s Oil Industry Respond to ‘Massive
Shift’
* Trans Mountain “Prepared” for Protesters as Work Moves Into
B.C.
* China’s Paper WTO Win Doesn’t Dissuade Trump From Trade War
* Shanghai Plans to Have 10,000 Hydrogen Cars on Road by 2023
* Ships Running on LNG to More Than Double by 2030: Petronas
PHYSICAL CRUDE NEWS:
* ASIA: Iraq Gives Full Supply to 5; China’s Oil Demand
* LATAM: Caribbean Storage Outlook; Venezuela Crude Output
* US/CANADA: Poseidon at Lowest Since July on CHOPS Outage
* NSEA: Litasco Offers Brent Lower; Mercuria Bids Two Grades
* MED: Tenergy Sells Siberian Light; Urals 5-Day Program
* WAF: Sonangol Sells 3 Cargoes; IOC Seeks Dec. Sweet Crude
OIL PRODUCT NEWS:
* U.S.: Sally Still a Threat; Gasoline Inventory Up
* EUROPE: Floating Storage; IEA Cuts Demand Forecast
* ASIA: Chinese Demand Bigger; India’s Diesel Pain
Singapore 380 INDIC
Oct20 242.50 / 244.50
Nov20 242.25 / 244.25
Dec20 243.25 / 245.25
Jan21 245.25 / 247.25
Feb21 247.50 / 249.50
Mar21 249.75 / 251.75
Q4-20 242.50 / 244.50
Q1-21 247.50 / 249.50
Q2-21 253.50 / 255.50
Q3-21 257.75 / 260.75
CAL21 254.75 / 257.75
Rotterdam 3.5% INDIC
Oct20 229.00 / 231.00
Nov20 227.75 / 229.75
Dec20 227.50 / 229.50
Jan21 229.50 / 231.50
Feb21 231.50 / 233.50
Mar21 233.50 / 235.50
Q4-20 228.00 / 230.00
Q1-21 231.50 / 233.50
Q2-21 237.00 / 239.00
Q3-21 240.25 / 243.25
CAL21 237.75 / 240.75
Singapore VLSFO 0.5% INDIC
Oct20 307.25 / 312.25
Nov20 307.75 / 312.75
Dec20 308.75 / 313.75
Jan21 310.25 / 315.25
Feb21 311.75 / 316.75
Mar21 313.50 / 318.50
Q4-20 308.00 / 313.00
Q1-21 312.00 / 317.00
Q2-21 316.50 / 322.50
Q3-21 321.75 / 327.75
CAL21 319.00 / 325.00
Rott VLSFO 0.5% INDIC
Oct20 280.25 / 285.25
Nov20 281.75 / 286.75
Dec20 283.75 / 288.75
Jan21 286.75 / 291.75
Feb21 290.00 / 295.00
Mar21 293.00 / 298.00
Q4-20 282.00 / 287.00
Q1-21 290.00 / 295.00
Q2-21 297.75 / 303.75
Q3-21 304.00 / 310.00
CAL21 300.00 / 306.00
Sing 10ppm GO INDIC
Oct20 44.27 / 44.41
Nov20 44.75 / 44.95
Dec20 45.26 / 45.46
Jan21 45.78 / 45.98
Feb21 46.31 / 46.51
Mar21 46.86 / 47.06
Q4-20 44.75 / 44.95
Q1-21 46.32 / 46.52
Q2-21 47.88 / 48.08
Q3-21 49.38 / 49.58
CAL21 48.38 / 48.78
ICE Gasoil 10ppm INDIC
Oct20 330.11 / 332.11
Nov20 336.03 / 338.03
Dec20 340.95 / 342.95
Jan21 346.51 / 348.51
Feb21 351.79 / 353.79
Mar21 355.65 / 357.65
Q4-20 335.70 / 337.70
Q1-21 351.31 / 353.31
Q2-21 362.14 / 364.14
Q3-21 374.39 / 376.39
CAL21 367.10 / 369.10
Rott Hi5 Sing Hi5
Oct20 53 66
Nov20 56 67
Dec20 58 67
Jan21 59 67
Feb21 60 66
Mar21 61 65
Q4-20 56 67
Q1-21 60 66
Q2-21 63 65
Q3-21 65 65
CAL21 64 66