Brent crude fell 32 cents, or 0.8%, to $42.53 a barrel by 0347 GMT and WTI for November was at $40.30 a barrel, down 30 cents, or 0.7%.
Sing 0.5% and Rott 0.5% spreads are still in backwardation on the front months, HSFO spreads, however, are just clinging onto negative territory. Hi5s continue to tick up, Cal21 sing settling at 71.3 and cal22 jumping to almost 82. The front crack was valued at -5.95 this morning, strengthening slightly from last week.
Coronavirus cases in Europe and North America are on the increase with sources saying that 2 million deaths will not be impossible. The UK is expected to release news of a tiered lockdown system which would see establishments shut, and will be reviews monthly if the infection rate decreases and the virus is under control. The pandemic has now encouraged the Bank of England to explore the possibility of negative interest rates and they have asked banks for information on their readiness for the possibility of such a scenario.
Key news from the end of last week was that the ongoing strikes in the Norwegian Shelf over workers’ pay had finally been resolved on Friday and an agreement was reached which will mean the potential output reduction of 25% from the fields will not materialise on 14th October. This came after 10 days of strike action over pay for oil platform workers, represented by Lederne. (Reuters)
In the US, the recovery from the devastation of hurricane Delta begins as oil majors that operate in the area begin starting platforms as the high winds and rains battered the area. On Sunday the U.S. Bureau of Safety and Environmental Enforcement said 91% of the offshore crude oil production remain shut as companies began staffing platforms and restarting production again. Storm Delta had shut nearly all the crude production and almost two thirds of natural gas production which was the highest amount shut in 15 years due to inclement weather. (Reuters)
In Libya, the force majeure that has been in place for over 9-months as the Sharara oil field has been lifted as the militant presence has disappeared as an agreement was reached on the 300,000 bpd oil field, with output potentially reaching 30,000 bpd today as oil production ramps up, with an expected output this week of 330,000bpd. Sources say that oil production was nearly up to 300,000 bpd last week, up from 90,000 bpd in August. (Argus Media)
INDEX: (MTD Estimates)
* Sing 380: 240.37
* Rott 3.5%: 225.11
* Sing 0.5%: 319.03
* Rott 0.5%: 296.29
MARKETS NEWS:
* Libya Reopens Its Biggest Oil Field, Giving OPEC+ a New Headache
* Covid and Taxes Eat Away at Diesel’s Edge Over Gasoline in India
* Oil Explorers Get Back to Work After Delta Rakes Louisiana
* Iraq Sees $45 Oil in First Quarter, Minister Tells Al-Sabah
* Iran Sets Light Crude Price to Asia at 35C/Bbl Discount for Nov.
* Trafigura Sells Dec. Murban Oil at -5C to Dubai on Platts Window
* VSLFO Spreads move into Backwardation
* HSFO Crack Strengthens Above -6
* Asia-Americas Fuel: Diesel for Argentina Boosts Oct. Shipments
* Norwegian Oil Strikes resolved
OTHER NEWS:
* World Bank Still Investing Billions in Fossil Fuels, Study Shows
* LG Chem Posts Record Profit as EV Demand Stokes Battery Business
* Australia Seen at Risk of Losing A$43 Billion in Green Spending
* New Lockdowns Coming In Force in the UK
* GBP/USD: 1.304
* USD/EUR: 0.8464
* EUR/GBP: 0.9056
OIL PRODUCT WRAPS:
* U.S.: Diesel Trades Below Gasoline Going Into Fall
* EUROPE: Higher Saudi Flows; Sarroch Furlough; Cepsa
ECONOMIC EVENTS: (Times are London. )
* U.S. Columbus Day federal government holiday; oil futures exchanges remain open
Singapore 380 INDIC
Nov20 246.25 / 248.25
Dec20 246.75 / 248.75
Jan21 247.75 / 249.75
Feb21 249.25 / 251.25
Mar21 250.50 / 252.50
Apr21 251.75 / 253.75
Q1-21 249.25 / 251.25
Q2-21 253.00 / 255.00
Q3-21 256.75 / 258.75
Q4-21 259.25 / 262.25
CAL21 255.00 / 258.00
Rotterdam 3.5% INDIC
Nov20 232.50 / 234.50
Dec20 232.75 / 234.75
Jan21 233.75 / 235.75
Feb21 235.00 / 237.00
Mar21 236.25 / 238.25
Apr21 237.50 / 239.50
Q1-21 235.00 / 237.00
Q2-21 238.75 / 240.75
Q3-21 241.25 / 243.25
Q4-21 242.00 / 245.00
CAL21 239.25 / 242.25
Singapore VLSFO 0.5% INDIC
Nov20 321.00 / 326.00
Dec20 320.25 / 325.25
Jan21 320.50 / 325.50
Feb21 321.00 / 326.00
Mar21 322.00 / 327.00
Apr21 323.25 / 328.25
Q1-21 321.00 / 326.00
Q2-21 324.50 / 329.50
Q3-21 328.25 / 334.25
Q4-21 332.25 / 338.25
CAL21 326.25 / 332.25
Rott VLSFO 0.5% INDIC
Nov20 300.25 / 305.25
Dec20 299.25 / 304.25
Jan21 299.00 / 304.00
Feb21 299.75 / 304.75
Mar21 301.00 / 306.00
Apr21 302.25 / 307.25
Q1-21 300.00 / 305.00
Q2-21 303.75 / 308.75
Q3-21 307.75 / 313.75
Q4-21 311.75 / 317.75
CAL21 305.50 / 311.50
Sing 10ppm GO INDIC
Nov20 46.16 / 46.30
Dec20 46.55 / 46.75
Jan21 46.95 / 47.15
Feb21 47.35 / 47.55
Mar21 47.75 / 47.95
Apr21 48.20 / 48.40
Q1-21 47.35 / 47.55
Q2-21 48.60 / 48.80
Q3-21 49.85 / 50.05
Q4-21 50.66 / 50.86
CAL21 49.02 / 49.42
ICE Gasoil 10ppm INDIC
Nov20 345.67 / 347.67
Dec20 349.18 / 351.18
Jan21 353.52 / 355.52
Feb21 357.63 / 359.63
Mar21 360.70 / 362.70
Apr21 364.12 / 366.12
Q1-21 357.30 / 359.30
Q2-21 366.27 / 368.27
Q3-21 378.45 / 380.45
Q4-21 386.96 / 388.96
CAL21 372.24 / 374.24
Rott Hi5/Sing Hi5
Nov20 69 76
Dec20 68 75
Jan21 67 74
Feb21 66 73
Mar21 66 73
Apr21 66 73
Q1-21 66 74
Q2-21 67 73
Q3-21 69 74
Q4-21 71 74
CAL21 68 73