Brent crude futures dropped 32 cents, or 0.8%, to $42.30 a barrel by 0418 GMT, after falling 31 cents on Monday. WTI futures fell 26 cents, or 0.6%, to $40.57 a barrel, after losing 5 cents on Monday.
Oil steadied yesterday as hopes of a vaccine were nearing which would potentially ease some lockdowns, trickling down into increased demand for fuels and oil with also a US stimulus package holding oil up over the day, albeit only slightly. Also from the US, organizers for the final Trump v Biden debate will feature a mute button to allow candidates to speak, Thursday will be the last opportunity for the candidates to win crucial votes for office, with polls looking at a small Biden majority this morning.
Four days of losses for crude show the gloominess of the oil market as it look like increasing supply from Libya, faltering demand from China and increasing lockdowns and virus cases are depressing the oil market. COVID-19 cases stand at 40 million amidst a growing second wave. (Reuters)
Continuing with the American theme, ConocoPhillips has agreed a deal worth $9.7 billion to buy Shale oil producer Concho Resources to consolidate its supply chain as fuel and demand continues to fall. Concho Produces 319,000 bpd, which is the fifth largest producer by volume in the Permian Basin. (Reuters)
Saudi Crude exports rose for a second consecutive month in August from a record low in June figures from JODI. August figures posted 5.97 million bpd, up from 5.73 million bpd in July. Total output rose by 500,000 bpd to 8.98 million barrels per day in August. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 249.05
* Rott 3.5%: 233.43
* Sing 0.5%: 322.63
* Rott 0.5%: 301.55
MARKETS NEWS:
* Russia Will Wait a Month Before Deciding on Future of OPEC+ Cuts
* Israel and UAE Open Talks Over Top Secret Oil Pipeline
* China Sept. Gasoline Output Rose 0.1% Y/y to 11.956m Tons
* Russia’s Lukoil Looks Beyond Covid to Boosting Iraq Oil Output
* Petrobras 3Q Average Oil Output In Brazil 2,364 Mbpd
* API Reports U.S. Crude Stockpiles Rose 584K Bbl Last Week
OTHER NEWS:
* Shale Oil M&A Accelerates With Pioneer Strike to Buy Out Parsley
* Pioneer to Buy Parsley for $4.5 Billion in Latest Shale Merger
* Union Raises Safety Concern Over 80% Job Cuts at Two Shell Sites
* Maersk Drilling Gets $30 Million Three-Well Contract From Total
ECONOMIC EVENTS: (Times are London.)
* Genscape weekly ARA crude inventory report
* Iraq Petroleum conference, final day
* EIA weekly oil inventory report, 3:30pm
* EARNINGS: Baker Hughes, Kinder Morgan Inc.
ANALYST COLUMNS:
* Jet Fuel Price Set to Gain in 2021 With Vaccine: Fitch Solutions
* Withdrawal From Oil Stocks Seen But Downstream Demand Still Soft
Singapore 380 INDIC
Nov20 259.00 / 261.00
Dec20 257.00 / 259.00
Jan21 256.25 / 258.25
Feb21 256.50 / 258.50
Mar21 256.75 / 258.75
Apr21 257.25 / 259.25
Q1-21 256.50 / 258.50
Q2-21 257.75 / 259.75
Q3-21 259.25 / 261.25
Q4-21 260.25 / 263.25
CAL21 258.50 / 261.50
Rotterdam 3.5% INDIC
Nov20 245.25 / 247.25
Dec20 242.25 / 244.25
Jan21 241.00 / 243.00
Feb21 241.00 / 243.00
Mar21 241.25 / 243.25
Apr21 241.75 / 243.75
Q1-21 241.00 / 243.00
Q2-21 242.25 / 244.25
Q3-21 243.00 / 245.00
Q4-21 242.50 / 245.50
CAL21 242.25 / 245.25
Rott VLSFO 0.5% INDIC
Nov20 302.00 / 307.00
Dec20 301.00 / 306.00
Jan21 300.25 / 305.25
Feb21 300.25 / 305.25
Mar21 301.00 / 306.00
Apr21 302.00 / 307.00
Q1-21 300.50 / 305.50
Q2-21 303.00 / 308.00
Q3-21 306.00 / 312.00
Q4-21 309.50 / 315.50
CAL21 304.50 / 310.50
Singapore VLSFO 0.5% INDIC
Nov20 321.50 / 326.50
Dec20 320.50 / 325.50
Jan21 319.75 / 324.75
Feb21 319.75 / 324.75
Mar21 320.00 / 325.00
Apr21 320.25 / 325.25
Q1-21 319.75 / 324.75
Q2-21 321.00 / 326.00
Q3-21 324.00 / 330.00
Q4-21 328.00 / 334.00
CAL21 323.00 / 329.00
Sing 10ppm GO INDIC
Nov20 45.32 / 45.46
Dec20 45.72 / 45.92
Jan21 46.18 / 46.38
Feb21 46.63 / 46.83
Mar21 47.08 / 47.28
Apr21 47.56 / 47.76
Q1-21 46.65 / 46.85
Q2-21 48.00 / 48.20
Q3-21 49.33 / 49.53
Q4-21 50.21 / 50.41
CAL21 48.44 / 48.84
ICE Gasoil 10ppm INDIC
Nov20 339.30 / 341.30
Dec20 343.19 / 345.19
Jan21 347.49 / 349.49
Feb21 351.70 / 353.70
Mar21 355.45 / 357.45
Apr21 358.60 / 360.60
Q1-21 351.55 / 353.55
Q2-21 361.17 / 363.17
Q3-21 372.06 / 374.06
Q4-21 379.87 / 381.87
CAL21 366.16 / 368.16
Rott Hi5 Sing Hi5
Nov20 56 62
Dec20 58 63
Jan21 58 63
Feb21 59 63
Mar21 59 63
Apr21 60 63
Q1-21 59 63
Q2-21 60 63
Q3-21 63 65
Q4-21 66 68
CAL21 62 67