Brent remain choppy this morning as API data shows of a Crude draw in the US but the short-term outlook remained uncertain as the outcome of the US election remained as clear as mud. West Texas Intermediate was up 0.3%, at $37.67 a barrel by 0735GMT, after trading in a nearly $1 range. Brent crude was up 0.23%, at $39.74, after trading between $39.85 and $40.80.
It is the United ‘Waits” of America this morning as the election result remains tight after many news outlets had a clear Biden win. The markets are not enjoying this uncertainty as of yet, especially in the Oil market as participants are wary of the fragility of the situation as the UK wakes up to the news of a tight run race. Morning news is heavily dominated by the events in the US and many are expecting there to be a sting in the tail over the new few hours as they unfold.
API reports of a crude draw of 8 million barrels, a stark contrast to the analyst expectations of a 890,000 barrel build. Prices again seem to be capped by the ever present coronavirus infections that inadvertently wreak havoc on the global fuel demands around the globe, although reports have Asian fuel demand near pre-Covid levels in all but jet fuel. (S&P Global Platts)
Russia and Saudi Arabia are looking closer into the possibility of delaying the revision of quotas on January 1st, with both nations willing to reduced output levels in the new year to support price levels in order to ensure that prices do not crash, akin to what was see in the early stages of the first wave of the pandemic. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 242.72
* Rott 3.5%: 236.13
* Sing 0.5%: 300.34
* Rott 0.5%: 286.00
MARKETS NEWS:
* Mexican Main Oil Ports Shut by Bad Weather May Reopen Wednesday
* API Reports U.S. Crude Stockpiles Fell 8.01M Bbl Last Week
* Nigerian State-Owned Oil Company Reports Facility Explosion
* U.S. Gulf Shuts in 266,744 B/D or 14.42% Oil Production: BSEE
* Fuel Oil Soars Along With Expectations for Longer OPEC+ Cuts
* Gulf Investors Plot U.S. Election Fallout Via Oil Markets
* China Is the One Bright Spot for Persian Gulf OPEC Exporters
OTHER NEWS:
* Exxon Sees Transport Oil Demand 10% Below Normal in U.S., Europe
* Shale CEO Backs Stand-Alone View, Says Peer Deals ‘Self- Serving’
* BP Share Price ‘Very Low’ As Entire Sector’s Under Pressure: CEO
* Oil Giant Aramco Keeps Dividend Despite 45% Slump in Profit
* U.S. Oil Fund to Roll Some Positions Into Dec. 2021 WTI
* Gas-Rich Qatar to Base Budget on $40 Oil to Protect Finances
OIL PRODUCT NEWS:
* ASIA: Green Fuel Rethink by Chinese Energy Giant
* EUROPE: Flow to WAF Surges; Neste Rotterdam; Saras
* U.S.: Los Angeles Offers Bright Spot for Jet Fuel
ECONOMIC DATA: (Times are Singapore. All estimates are medians of Bloomberg surveys.)
* 8pm, U.S., MBA Mortgage Applications, Oct 30, prev. 1.7%
* 9:15pm, U.S., ADP Employment Change, Oct, est. 650k, prev. 749k
* 9:30pm, U.S., Trade Balance, Sep, est. -$63.9b, prev. -$67.1b
* 10:30pm, U.S. Census crude export data
* Genscape weekly ARA crude inventory report
* 11:30pm, EIA weekly oil inventory report
* U.S. withdrawal from the Paris Agreement on global warming takes effect
* EARNINGS: Marathon Oil Corp., Energy Transfer LP
Rotterdam 3.5% INDIC
Dec20 226.25 / 228.25
Jan21 224.75 / 226.75
Feb21 225.00 / 227.00
Mar21 225.25 / 227.25
Apr21 225.75 / 227.75
May21 226.50 / 228.50
Q1-21 225.00 / 227.00
Q2-21 226.25 / 228.25
Q3-21 227.25 / 229.25
Q4-21 226.50 / 229.50
CAL21 224.50 / 230.50
Singapore 380 INDIC
Dec20 241.00 / 243.00
Jan21 239.50 / 241.50
Feb21 239.75 / 241.75
Mar21 240.00 / 242.00
Apr21 240.50 / 242.50
May21 241.00 / 243.00
Q1-21 239.75 / 241.75
Q2-21 241.00 / 243.00
Q3-21 243.00 / 245.00
Q4-21 244.25 / 247.25
CAL21 240.75 / 246.75
Rott VLSFO 0.5% INDIC
Dec20 285.00 / 290.00
Jan21 285.00 / 290.00
Feb21 286.50 / 291.50
Mar21 288.25 / 293.25
Apr21 290.00 / 295.00
May21 291.75 / 296.75
Q1-21 286.75 / 291.75
Q2-21 291.75 / 296.75
Q3-21 296.50 / 302.50
Q4-21 300.00 / 308.00
CAL21 288.75 / 296.75
Singapore VLSFO 0.5% INDIC
Dec20 305.25 / 310.25
Jan21 304.75 / 309.75
Feb21 305.50 / 310.50
Mar21 306.50 / 311.50
Apr21 307.75 / 312.75
May21 309.50 / 314.50
Q1-21 305.75 / 310.75
Q2-21 309.50 / 314.50
Q3-21 314.25 / 320.25
Q4-21 318.25 / 326.25
CAL21 309.00 / 317.00
Sing 10ppm GO INDIC
Dec20 43.04 / 43.18
Jan21 43.38 / 43.58
Feb21 43.76 / 43.96
Mar21 44.21 / 44.41
Apr21 44.71 / 44.91
May21 45.20 / 45.40
Q1-21 43.74 / 44.04
Q2-21 45.14 / 45.44
Q3-21 46.54 / 46.84
Q4-21 47.49 / 47.79
CAL21 45.68 / 46.08
ICE Gasoil 10ppm INDIC
Dec20 320.11 / 322.11
Jan21 324.36 / 326.36
Feb21 328.57 / 330.57
Mar21 332.41 / 334.41
Apr21 335.75 / 337.75
May21 339.53 / 341.53
Q1-21 328.45 / 330.45
Q2-21 338.77 / 340.77
Q3-21 350.91 / 352.91
Q4-21 359.77 / 361.77
CAL21 351.21 / 353.21
Rott Hi5/Sing Hi5
Dec20 60.32 65.82
Jan21 61.82 66.82
Feb21 63.07 67.32
Mar21 64.57 68.07
Apr21 65.82 68.82
May21 66.82 70.07
Q1-21 63.15 67.40
Q2-21 66.91 69.99
Q3-21 71.07 73.16
Q4-21 75.91 76.41
CAL21 65.00 69.00