Brent was down by 8 cents at $43.26 a barrel by 0740 GMT, WTI crude fell 5 cents at $41.14 after both benchmarks gained more than 3% on Thursday. Both contracts are on course for a 10% gain this week after the news broke that the strikes in the Norwegian oil fields could signify a drop off of 25% of total output from the region. VLSFO spreads have moved into backwardation on the front months for the first time in a while, however, HSFO spreads are still clinging on to negative figures.
OPEC released their latest outlook for the future demand of oil yesterday which as peak oil demand to reach 109.3 million barrel per day in 2040 at which point it is due to taper off at a relatively slow place over a long period of time. The report revised down the prediction of oil demand due to the changing dynamics brought about from the pandemic which effectively halted the market back in April where the price crashed. (S&P Global Platts)
Reports from Reuters say that the chief of OPEC has stated the worst for the oil market is over following the collapse in oil prices and demand due to the pandemic. (Reuters)
Oil strikes in Norway are set to last as agreements over pay disputes are ongoing which could see output from the region fall even further as the country’s main oil field is under threat from planned strike action as operational roles are due for change of personnel on 14th October. The equivalent of 966,000 barrels of oil are expected to come offline in the run up to the 14th October said the Norwegian Oil and Gas Association. (Reuters)
Hurricane Delta is arriving in the Gulf Coast imminently, which has forced the mass evacuation of the regions oil and gas platforms, with more than 90% of oil offline. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 238.65
* Rott 3.5%: 223.54
* Sing 0.5%: 317.40
* Rott 0.5%: 294.25
MARKETS NEWS:
* Qatar Sets Land Crude Price at 75C/Bbl Discount for November
* Mexico’s Oil Hedge Under Wraps, But Traders Suspect Activity
* Nigeria Oil Exports to Rise 6% M/m for 19 Key Grades in November
* Nigeria Budgets for 1.86m B/D of Oil Output Next Year
* Nigerian Crude Stored on Tankers Starts to Fall in October
* Gasoil Stockpiles Rise in Europe’s ARA Region: Insights Global
PIPELINE/REFINERIES NEWS:
* U.S. Gulf Shuts 91.5% of Oil Output Before Hurricane Delta: BSEE
* Chevron Shuts Fourchon Oil Terminal Ahead of Hurricane Delta
OTHER NEWS:
* Saudi Arabia May Face Budget Squeeze After 2021, Moody’s Says
* Global Oil Refining Capacity to Rise Through 2035, OPEC Says
* Nigeria Oil Workers Suspend Strike at Chevron, Union Says
* Texas Oil Well Site Spewed Pollution for 10 Months, Group Says
OIL PRODUCT NEWS:
* U.S.: Delta Will Weaken Before Reaching Louisiana
* EUROPE: Italian Refineries Return CDUs; Repsol
* ASIA: Singapore’s Middle Distillate Stockpiles Fall
ECONOMIC EVENTS: (Times are London.)
* 6pm: Baker Hughes weekly rig count report
* 6:30pm: ICE Commitments of Traders report
* 8:30pm: CFTC Commitments of Traders report
Singapore 380 INDIC
Nov20 249.50 / 251.50
Dec20 250.50 / 252.50
Jan21 252.00 / 254.00
Feb21 253.50 / 255.50
Mar21 255.00 / 257.00
Apr21 256.50 / 258.50
Q1-21 253.50 / 255.50
Q2-21 257.75 / 259.75
Q3-21 261.50 / 263.50
Q4-21 264.50 / 267.50
CAL21 258.75 / 261.75
Rotterdam 3.5% INDIC
Nov20 236.50 / 238.50
Dec20 237.00 / 239.00
Jan21 238.25 / 240.25
Feb21 239.75 / 241.75
Mar21 241.25 / 243.25
Apr21 242.75 / 244.75
Q1-21 239.75 / 241.75
Q2-21 244.00 / 246.00
Q3-21 246.50 / 248.50
Q4-21 247.25 / 250.25
CAL21 243.25 / 246.25
Singapore VLSFO 0.5% INDIC
Nov20 326.25 / 331.25
Dec20 324.50 / 329.50
Jan21 323.75 / 328.75
Feb21 324.00 / 329.00
Mar21 324.25 / 329.25
Apr21 325.00 / 330.00
Q1-21 324.00 / 329.00
Q2-21 326.25 / 331.25
Q3-21 330.00 / 336.00
Q4-21 334.00 / 340.00
CAL21 328.25 / 334.25
Rott VLSFO 0.5% INDIC
Nov20 305.75 / 310.75
Dec20 305.25 / 310.25
Jan21 305.25 / 310.25
Feb21 306.50 / 311.50
Mar21 307.75 / 312.75
Apr21 309.00 / 314.00
Q1-21 306.50 / 311.50
Q2-21 310.25 / 315.25
Q3-21 314.00 / 320.00
Q4-21 317.75 / 323.75
CAL21 311.75 / 317.75
Sing 10ppm GO INDIC
Nov20 46.87 / 47.01
Dec20 47.26 / 47.46
Jan21 47.62 / 47.82
Feb21 48.03 / 48.23
Mar21 48.45 / 48.65
Apr21 48.90 / 49.10
Q1-21 48.05 / 48.25
Q2-21 49.29 / 49.49
Q3-21 50.60 / 50.80
Q4-21 51.44 / 51.64
CAL21 49.74 / 50.14
ICE Gasoil 10ppm INDIC
Nov20 351.17 / 353.17
Dec20 354.68 / 356.68
Jan21 358.86 / 360.86
Feb21 362.79 / 364.79
Mar21 365.75 / 367.75
Apr21 369.20 / 371.20
Q1-21 362.45 / 364.45
Q2-21 371.27 / 373.27
Q3-21 382.50 / 384.50
Q4-21 387.96 / 389.96
CAL21 376.05 / 378.05
Rott Hi5 Sing Hi5
Nov20 70.87 78.87
Dec20 69.62 75.87
Jan21 68.37 73.62
Feb21 68.12 72.37
Mar21 67.87 71.37
Apr21 67.87 70.62
Q1-21 68.10 72.45
Q2-21 68.20 70.52
Q3-21 70.12 70.82
Q4-21 72.62 71.32
CAL21 69.00 70.50