*Fuel Spreads Move Further into Backwardation*
Both HSFO and VLSFO fuel oil futures have moved further into backwardation on front month spreads, as demand returns, and supply holds steady. News that there were potential supply shortages in China of VLSFO fuel were echoing through the market and helped lift front Sing 0.5% spreads up to Feb/Mar out of negative territory. Front month HSFO moved to $3 and $2 on the Rotterdam and Singapore respectively, up from last week. (FIS)
*Oil Futures Steady Amid Ongoing Demand Uncertainty*
Crude futures remained steady this European afternoon session, plagues by uncertainty of growing coronavirus cases and increasing supply output. To add to the misery, the US election may likely cause greater swings in the oil market either way the vote goes. (S&P Global Platts)
* French Activists Say 100,000 Hurt by Total’s Ugandan Oil Operation*
Activist groups in France say that 100,000 have been injured at Total’s operations in Uganda and Tanzania as a result of human rights violations. The groups are demanding that Total reveals the extent of its operations and what it is doing to mitigate these alleged failures in Africa, but Total have previously stated that it is working in accordance with national and international standards. (Reuters)
*Americas: US Residual Fuel Oil Demand Falls To 84-Year Low*
Residual fuel oil deliveries in the US fell to an 84 year low with September’s figure posting at 245,000 bpd, this is the lowest level since 1936. The figure represents a 16.7% decrease on the month and 19.7% decrease on the year. (BunkerSpot)
*Israeli Pipeline Company Says Signs Deal to Bring UAE Oil to Europe*
EAPC stated today that it had signed a preliminary deal to transport oil from the UAE to Europe via a pipeline that connects the city of Eilat and Ashkelon. The deal is reportedly worth $700-$800 million over several years. (Reuters)