Brent crude was down 1 cent at $42.45 a barrel by 0413 GMT having risen 1.7% on Thursday, while WTI was 3 cents lower at $40.61, following a 1.5% gain in the previous session. Both contracts are heading for their first weekly loss in three. Factors such as increasing Libyan supply and rising Coronavirus cases globally could be seen for why oil cannot break the $45 per barrel mark.
The World bank has predicted that oil will average at around $44 per barrel in 2021, adding further weight behind the view that we are going to have lower oil for longer. (OilPrice.com)
Russia has signalled its intention to alter output levels if the market conditions warranted it as OPEC+ are due to relax output levels from the 1st January. This marks the clearest indication from one of the world’s largest oil exporters to tailor its output it a bid to sustain oil prices as they continue to be capped by the glass ceiling. Putin gave his support for the cartel and said that it was an effective tool for global market stabilisation. (Reuters)
Off the back of Pelosi’s comments that the US were close to agreeing a deal for a stimulus package, oil held stable around the $42.50 mark in US trading but started to fall off overnight. The news stated that the US were just about there for agreeing the stimulus deal which is much needed for the global economy, not just the US. Further bullish news from the US was job data showing positive signs and moving in the right direction as the first time unemployment claims fell to 787,000, the lowest since week ending 14th march. (S&P Global Platts)
Oil refiner Valero posted bullish news as its third quarter results were higher than expected, 200,000 bpd better crude processing than the quarter before for an average of 2.5 million barrels processed per day as gasoline, diesel and jet fuel slowly picking up. The company now expected to invest 40% of its growth capital into expanding its renewable business. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 250.69
* Rott 3.5%: 235.61
* Sing 0.5%: 322.31
* Rott 0.5%: 301.88
MARKETS NEWS:
* Venezuelan Oil Inventories Swell As Usual Buyers Disappear
* HSFO front spreads rocketing
* OPEC+ Is Effective, But Difficult Tool to Steady Oil Mkt: Putin
* Oil Demand May See Lasting Impact From Pandemic, World Bank Says
* Rosneft CEO Urges Global Effort to Boost Oil Amid Pandemic
* Angola Sept. Oil Revenue Falls 6.6% From August, Ministry Says
* Some U.S. Crudes Sink to Multi-Month Lows Amid Narrow WTI-Brent
OIL PRODUCT NEWS:
* U.S.: Hamm Sees Doomsday Scenario of Biden $6 Gas
* EUROPE: Fuel Oil Stocks Jump; Repsol Biofuel Plans
* ASIA: Singapore Light Distillate Stockpiles Shrink
ECONOMIC DATA:
* 6pm: Baker Hughes weekly rig count report
* 6:30pm: ICE Commitments of Traders report
* 8:30pm: CFTC Commitments of Traders report
* China 2nd batch of September trade data, including oil products trade breakdown
ANALYST COLUMNS:
* OIL MKT RESEARCH: Goldman Sees Commodity Bull Markets; 4Q Demand
* Breakeven Oil Price Is Down But Still Lags Benchmark: Rystad
* ARA Fuel Oil Stockpiles Rise Above 5-Year Seasonal Range: IG
Singapore 380 INDIC
Nov20 259.75 / 261.75
Dec20 256.75 / 258.75
Jan21 255.25 / 257.25
Feb21 255.00 / 257.00
Mar21 255.00 / 257.00
Apr21 255.00 / 257.00
Q1-21 255.25 / 257.25
Q2-21 255.25 / 257.25
Q3-21 256.25 / 258.25
Q4-21 257.25 / 260.25
CAL21 255.25 / 258.25
Rotterdam 3.5% INDIC
Nov20 247.00 / 249.00
Dec20 242.75 / 244.75
Jan21 240.50 / 242.50
Feb21 239.75 / 241.75
Mar21 239.50 / 241.50
Apr21 239.50 / 241.50
Q1-21 240.00 / 242.00
Q2-21 239.50 / 241.50
Q3-21 239.50 / 241.50
Q4-21 239.00 / 242.00
CAL21 239.00 / 242.00
Rott VLSFO 0.5% INDIC
Nov20 299.00 / 304.00
Dec20 297.75 / 302.75
Jan21 297.25 / 302.25
Feb21 298.00 / 303.00
Mar21 299.00 / 304.00
Apr21 300.25 / 305.25
Q1-21 298.00 / 303.00
Q2-21 301.50 / 306.50
Q3-21 305.50 / 311.50
Q4-21 309.50 / 315.50
CAL21 303.25 / 309.25
Singapore VLSFO 0.5% INDIC
Nov20 318.25 / 323.25
Dec20 317.75 / 322.75
Jan21 317.75 / 322.75
Feb21 318.25 / 323.25
Mar21 319.00 / 324.00
Apr21 320.00 / 325.00
Q1-21 318.25 / 323.25
Q2-21 321.25 / 326.25
Q3-21 325.25 / 331.25
Q4-21 329.50 / 335.50
CAL21 323.25 / 329.25
Sing 10ppm GO INDIC
Nov20 44.48 / 44.62
Dec20 44.95 / 45.15
Jan21 45.45 / 45.65
Feb21 45.93 / 46.13
Mar21 46.44 / 46.64
Apr21 46.94 / 47.14
Q1-21 45.95 / 46.15
Q2-21 47.39 / 47.59
Q3-21 48.67 / 48.87
Q4-21 49.48 / 49.68
CAL21 47.77 / 48.17
ICE Gasoil 10ppm INDIC
Nov20 332.89 / 334.89
Dec20 337.45 / 339.45
Jan21 342.22 / 344.22
Feb21 346.98 / 348.98
Mar21 350.95 / 352.95
Apr21 354.10 / 356.10
Q1-21 346.70 / 348.70
Q2-21 356.67 / 358.67
Q3-21 367.31 / 369.31
Q4-21 375.02 / 377.02
CAL21 361.43 / 363.43
Rott Hi5 Sing Hi5
Nov20 53 60
Dec20 56 62
Jan21 58 64
Feb21 59 64
Mar21 61 65
Apr21 62 66
Q1-21 59 64
Q2-21 63 67
Q3-21 68 71
Q4-21 72 74
CAL21 66 69