Brent crude was up 17 cents at $42.11 a barrel by 0346 GMT, while U.S. West Texas Intermediate (WTI) crude gained 16 cents to $40.47.
A quiet Thursday lead to the steadying of oil after last week’s investor draws counteracted by a stronger dollar and renewed COVID-19 cases that caused the further border closures and restrictions.
The Chinese port city of Zhoushan has seen an increase in demand for bunkers as a result of its competitive pricing which is due to lure large vessels to the port that are making their journeys to and from Northeast Asia for cost efficiency. Since February 1st, tax rebates on low sulphur marine fuels have allowed for refineries in china to increase production, pushing down prices against key benchmarks of the same fuel class in Singapore. (S&P Global Platts)
Reports from Iraq state the oil ministry there has forced to deny reports that they have struck a deal with OPEC that would see their quotas being increased. Local newspapers reported that the agreement would be announced soon with 97% of the nation’s revenues deriving from oil finance. OPEC+ has been reducing production since January 2017 in a bid to support prices are reduce global stockpiles, especially pertinent during today’s market condition. (Reuters)
In the UK, oil production fell 3% on the year in July to 1.03 million bpd and was 4% lower over the first 7 months. Figures showed that the UK exported more crude and gas that in imported for a fourth month in a row in July, yet exports only exceeded imports by 4%. (S&P Global Platts)
China’s oil demand growth is set to fall over the next 5 years as a result of a slowing economy and a turn towards alternative fuels as it is set to become carbon neutral by 2060. Chinese economic growth may recover from 3% this year to 5% in the period of 2021-2025 but this would still be down on the 6.1% seen in 2019. (Argus Media)
MARKETS NEWS:
* IEA Signals Oil Demand Caution on Renewed Virus Curbs
* China Crude Stockpiles Edge Higher Toward Record Capacity:
Ursa
* Shell Plans to Divest Oil Drilling Rights off North Alaska
Coast
* China’s August Imports of U.S. Crude Drops From Record:
Customs
* Houston Gasoline Reaches 3-Week High as Traders Seek Winter
Fuel
* EUROPE-AMERICAS FUEL: Flows Drop to 4-Month Low as Bookings
Fail
* ARA Jet Fuel Stocks Drop as Cargo Moves to Floating Storage:
IG
OTHER NEWS:
* Singapore Oil Trader Hontop’s Bank Debts Close to Being
Settled
* BP Drops to 25-Year Low a Week After Unveiling Climate
Strategy
* Robeco Plans to Exclude Fossil-Fuel Stocks From All Its Funds
* Exxon’s Fabled Dividend Under Threat With Yield Above 10%:
Chart
PHYSICAL CRUDE NEWS:
* ASIA: Japan’s Oil Buying Spree; Libya to Restart Exports
* LATAM: Mexico Energy Reform At Stake; Petrobras Refineries
* US/CANADA: WTI Houston Futures to Accept Delivery on Ships
* NSEA: Litasco Offers Forties Lower; Petroineos Bids Again
* MED: Total Sells CPC at Lower Price; Hellenic Buys Urals
* WAF: Escravos Loadings to Gain in November; Kole Boost
OIL PRODUCT NEWS:
* U.S.: Marathon Catlettsburg PlansMulti-Unit Work
* EUROPE: Lower Pull From Americas; Total Grandpuits
* ASIA: Light Distillates Stockpiles Plunge by Record
ECONOMIC DATA/EVENTS: (Times are London.)
* 6:00pm: Baker Hughes weekly rig count report
* 6:30pm: ICE Commitments of Traders report
* 8:30pm: CFTC Commitments of Traders report
* China 3rd batch of August trade data, including country
breakdowns for energy and commodities
** See OIL WEEKLY AGENDA for this week’s events
ANALYST VIEWS/COLUMNS:
* China’s State Refiners to Trim October Fuel Exports 3% M/m:
JLC
* Refiner PBF Among Most Exposed to California Gas Car Ban:
Cowen
* StanChart Says U.S. Oil Output to Slump, Citi More Optimistic
OTHER FINANCIAL MARKETS:
* Stocks Rise With Futures; China’s Yuan Ticks Up: Markets Wrap
Singapore 380 INDIC
Oct20 240.00 / 242.00
Nov20 241.00 / 243.00
Dec20 242.75 / 244.75
Jan21 245.00 / 247.00
Feb21 247.00 / 249.00
Mar21 249.00 / 251.00
Q4-20 241.25 / 243.25
Q1-21 247.00 / 249.00
Q2-21 252.50 / 254.50
Q3-21 257.25 / 260.25
CAL21 254.00 / 257.00
Rotterdam 3.5% INDIC
Oct20 227.50 / 229.50
Nov20 228.00 / 230.00
Dec20 228.75 / 230.75
Jan21 230.75 / 232.75
Feb21 232.75 / 234.75
Mar21 234.75 / 236.75
Q4-20 228.25 / 230.25
Q1-21 232.75 / 234.75
Q2-21 238.50 / 240.50
Q3-21 241.50 / 244.50
CAL21 238.25 / 241.25
Singapore VLSFO 0.5% INDIC
Oct20 307.25 / 312.25
Nov20 307.50 / 312.50
Dec20 307.75 / 312.75
Jan21 309.00 / 314.00
Feb21 310.25 / 315.25
Mar21 311.50 / 316.50
Q4-20 307.50 / 312.50
Q1-21 310.25 / 315.25
Q2-21 314.00 / 320.00
Q3-21 318.50 / 324.50
CAL21 316.50 / 322.50
Rott VLSFO 0.5% INDIC
Oct20 288.25 / 293.25
Nov20 288.75 / 293.75
Dec20 289.50 / 294.50
Jan21 291.50 / 296.50
Feb21 293.25 / 298.25
Mar21 295.00 / 300.00
Q4-20 289.00 / 294.00
Q1-21 293.25 / 298.25
Q2-21 297.50 / 303.50
Q3-21 301.00 / 307.00
CAL21 299.00 / 305.00
Sing 10ppm GO INDIC
Oct20 43.97 / 44.11
Nov20 44.51 / 44.71
Dec20 45.05 / 45.25
Jan21 45.57 / 45.77
Feb21 46.12 / 46.32
Mar21 46.68 / 46.88
Q4-20 44.50 / 44.70
Q1-21 46.12 / 46.32
Q2-21 47.62 / 47.82
Q3-21 49.06 / 49.26
CAL21 48.09 / 48.49
ICE Gasoil 10ppm INDIC
Oct20 327.84 / 329.84
Nov20 333.38 / 335.38
Dec20 338.45 / 340.45
Jan21 343.84 / 345.84
Feb21 348.86 / 350.86
Mar21 352.65 / 354.65
Q4-20 333.20 / 335.20
Q1-21 348.45 / 350.45
Q2-21 359.17 / 361.17
Q3-21 371.40 / 373.40
CAL21 364.18 / 366.18
Rott Hi5 Sing Hi5
Oct20 62 69
Nov20 62 68
Dec20 62 67
Jan21 62 66
Feb21 62 65
Mar21 62 64
Q4-20 62 68
Q1-21 62 65
Q2-21 61 63
Q3-21 61 63
CAL21 62 64
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