U.S. West Texas Intermediate (WTI) crude futures fell 60 cents, or 1.5%, to $39.33 a barrel at 0445 GMT, while Brent crude futures dropped 47 cents, or 1.1%, to $41.30 a barrel.
The market sentiment is well and truly mixed on the news of rising investor risk appetite and reports from the US that inventories are falling, pushing oil up to the $42 per barrel mark. Yet there are notable concerns regarding the extent to which global economies are recovering from the first lockdown, and increasing supply from Libya as the first tanker arrives today to load 1,000,000 barrels of onshore stored crude. A representative of Commerzbank noted that oil was falling comparatively well given the news of multiple lockdowns increasing in European countries such as France, Spain and UK and with the US death toll passing the 200,000 mark. (Reuters)
News from the US shale market states that production could beat the 13 million bpd seen in 2019 although prices are required to be at least $60 per barrel for that to occur and be financial plausible for producers. Upstream investment plummeted in March 2020 due to shot revenues which translated to 65% fall in rig counts from early march at 835. (S&P Global Platts)
The CEO of Russia’s Gazprom Neft said in a conference that he does not expect to see oil consumption to return to levels seen in 2019 until at least the second quarter of 2021, with the company doing its best to maintain investment where possible despite the global slowdown. (Reuters)
In fuel oil, heavy sweet APAC crudes remain in demand for blending in the production of fuel oil, but reduction in vessel movements due to COVID-19 have pulled premiums much lower than that of levels earlier in the year of record highs. Despite the weakening in the premiums for these heavy sweet crudes, they still fared better compared with some of the light sweet, middle distillates-rich Asia-Pacific crudes. (Argus Media)
MARKETS NEWS:
* Japan’s On an Oil-Buying Spree: Some Traders Doubt It Will
Last
* Top India Oil Refiner Betting on Plastics to Cushion Fuel
Shocks
* U.S. Diesel Supplies Drop by Most Since Covid Lockdowns Began
* California Is Banning Gasoline Cars, Now the EV Race Begins
* California Drivers Buying Up 15% of Nation’s Gasoline: Chart
* Libya to Restart Oil Exports at a Third Port as War Abates
* Shell Says Drilling Ops at Mars Platform Restored After Storm
* Venezuela’s PDVSA Customers Start Winding Down Oil Trading:
Rtrs
* Bullish U.S. Crude Report Bolstered by Fuel Draw: EIA
Takeaways
OTHER NEWS:
* Airlines Face Desolate Future as Attempts to Reopen Crumble
* Even Now, U.S. Oil Drillers Remain Focused on Output Over Debt
* Nikola Said to Have Held BP Talks on Hydrogen-Fuel Network
* Ex-PDVSA Trader Charged With Bribery in Widespread Graft Probe
PHYSICAL CRUDE NEWS:
* ASIA: Venezuela, Iran Buck U.S. Sanctions; MCO P Factor
* LATAM: Ex-Vitol Trader’s Bribery Case; Ecopetrol Blocks
* US/CANADA: East Coast Gets 1st Trinidad Oil Since 2016
* NSEA: Litasco Sells Brent, Troll; VLCC to Load Forties
* MED: Hellenic Seeks Urals, CPC; Zueitina Exports to Resume
* WAF: Exports to Asia Set to Drop to Lowest Since June 2018
OIL PRODUCT NEWS:
* U.S.: Domestic Diesel Stocks Fall Most Since March
* EUROPE: Neste Expansion Plans; Unipec Jet Fuel
* ASIA: Citi Sees Middle Distillate Demand Boost
ECONOMIC DATA/EVENTS: (Times are London)
* 2pm: Bloomberg-hosted panel discussion on oil market outlook
including Citi’s Ed Morse, Standard Chartered’s Emily Ashford,
IEA’s Neil Atkinson, OilX’s Florian Thaler, Bloomberg NEF’s
Anastacia Dialynas
* Singapore onshore oil-product stockpile weekly data
* Insights Global weekly report on European refined product
inventories in ARA region
* Rystad Energy EMEA summit
** See OIL WEEKLY AGENDA for this week’s events
ANALYST VIEWS/COLUMNS:
* Economic Weakness the Next Big Worry for Oil Demand: StanChart
* Modest Gas Storage Rise Seen as Fundamental Outlook Improves
OTHER FINANCIAL MARKETS:
* Stocks Lurch Lower; Dollar Extends Recent Gains: Markets Wrap
Singapore 380 INDIC
Oct20 236.50 / 238.50
Nov20 237.75 / 239.75
Dec20 239.75 / 241.75
Jan21 242.00 / 244.00
Feb21 244.00 / 246.00
Mar21 246.00 / 248.00
Q4-20 238.00 / 240.00
Q1-21 244.00 / 246.00
Q2-21 249.50 / 251.50
Q3-21 253.75 / 256.75
CAL21 251.25 / 254.25
Rotterdam 3.5% INDIC
Oct20 224.00 / 226.00
Nov20 224.75 / 226.75
Dec20 225.50 / 227.50
Jan21 227.50 / 229.50
Feb21 229.50 / 231.50
Mar21 231.25 / 233.25
Q4-20 224.75 / 226.75
Q1-21 229.50 / 231.50
Q2-21 234.75 / 236.75
Q3-21 237.50 / 240.50
CAL21 235.50 / 238.50
Singapore VLSFO 0.5% INDIC
Oct20 306.75 / 311.75
Nov20 306.75 / 311.75
Dec20 307.25 / 312.25
Jan21 308.25 / 313.25
Feb21 309.25 / 314.25
Mar21 310.50 / 315.50
Q4-20 306.75 / 311.75
Q1-21 309.25 / 314.25
Q2-21 312.75 / 318.75
Q3-21 317.50 / 323.50
CAL21 315.25 / 321.25
Rott VLSFO 0.5% INDIC
Oct20 283.25 / 288.25
Nov20 283.50 / 288.50
Dec20 284.25 / 289.25
Jan21 286.25 / 291.25
Feb21 288.25 / 293.25
Mar21 290.25 / 295.25
Q4-20 283.50 / 288.50
Q1-21 288.25 / 293.25
Q2-21 293.50 / 299.50
Q3-21 299.00 / 305.00
CAL21 295.75 / 301.75
Sing 10ppm GO INDIC
Oct20 43.71 / 43.85
Nov20 44.18 / 44.38
Dec20 43.68 / 43.88
Jan21 44.23 / 44.43
Feb21 44.78 / 44.98
Mar21 45.34 / 45.54
Q4-20 43.85 / 44.05
Q1-21 44.78 / 44.98
Q2-21 46.30 / 46.50
Q3-21 47.61 / 47.81
CAL21 46.70 / 47.10
ICE Gasoil 10ppm INDIC
Oct20 323.92 / 325.92
Nov20 329.55 / 331.55
Dec20 334.78 / 336.78
Jan21 340.38 / 342.38
Feb21 345.66 / 347.66
Mar21 349.45 / 351.45
Q4-20 329.40 / 331.40
Q1-21 345.16 / 347.16
Q2-21 356.10 / 358.10
Q3-21 368.99 / 370.99
CAL21 361.67 / 363.67
For more information please contact
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