Brent crude futures for January rose 44 cents, or 1%, to $43.22 a barrel by 0204 GMT, while U.S. West Texas Intermediate crude for December was at $40.67 a barrel, up 54 cents, or 1.4%.
Libya output continues to climb after analysts predict that output could be at around the 1.2 million barrels per day level. OPEC have a job on their hands to continue to stabilise prices as crude and distillate stocks are well above the five-year average, with crude commercial stocks 31 million barrels higher. It is looking increasingly likely that planned output quota relaxations will be halted and the current cuts of over seven million barrels per day will be put in place through the new year.
OPEC+ Joint Ministerial Monitoring Committee is set to meet tomorrow, and while we will not get any decision on what OPEC+ will do when it comes to production cuts in 2021, we will certainly get plenty of noise. The committee may make a recommendation, but we will have to wait until the full OPEC+ meeting on the 30 November and 1 December for a final decision to be taken.
Trump has finally conceded that there may be a different administration in the White House come January, but still claims voter fraud in some states. However, Reuters reports that the incumbent is pushing through Alaskan oil leases before the president-elect may take office. (Reuters)
China has been making some considerable investments in the Chinese energy sector, which will prove to pay dividends through the coronavirus pandemic, with the US shale market on its knees, China have been able to take advantage of the economic and political environment, which may see it sit top of the fossil fuel food chain, as its own appetite for oil continues to grow. (OilPrice.com)
The Asian residual fuel markets are set to be supported, as trading increases as we look towards the December loading cargoes, with traders pointing out that they expect both the High-Sulphur and Low-Sulphur contracts to remain balanced towards the end of 2021. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 261.76
* Rott 3.5%: 245.78
* Sing 0.5%: 324.51
* Rott 0.5%: 305.70
MARKETS NEWS:
* China’s Oil Refining Matches Monthly Record Amid Holiday Boost
* Entire HSFO Structure Moved to Backwardation for 2021
* Twitter Suspends Account of Iranian Oil Minister Zanganeh
* Top Trader Vitol Strikes Deal to Buy Oil Liquids Made from Tires
* U.N Ends Talks Between Libyan Rivals in Tunisia: Jazeera
* KOREA OIL: Imports From Saudi Arabia at Three-Month High in Oct.
* China’s Oct. Apparent Oil Demand Rises 0.9% Y/y
* U.S. Total Rig Count Rises to 312, Baker Hughes Says
* Libya’s Oil Output Reaches 1.145M B/d: NOC
OIL PRODUCT NEWS:
* U.S.: Michigan Acts to Shut Down Pipe Into Canada
* EUROPE: BP Gelsenkirchen to Restart Unit; Milazzo
* ASIA: China Using Supertankers to Shrink Fuel Glut
ECONOMIC DATA: (Times are London.)
* 7:00pm: EIA releases monthly Drilling Productivity Report
* 8:30pm: CFTC Commitments of Traders report, delayed from previous week due to U.S. federal holiday
* OPEC+ Joint Technical Committee meeting
* HOLIDAY: India
(Data/News FIS and Bloomberg)
Singapore 380 INDIC
Dec20 267.50 / 269.50
Jan21 264.25 / 266.25
Feb21 262.75 / 264.75
Mar21 262.00 / 264.00
Apr21 261.25 / 263.25
May21 260.75 / 262.75
Q1-21 263.00 / 265.00
Q2-21 260.75 / 262.75
Q3-21 259.50 / 261.50
Q4-21 257.75 / 260.75
CAL21 258.75 / 261.75
Rotterdam 3.5% INDIC
Dec20 249.00 / 251.00
Jan21 248.00 / 250.00
Feb21 247.50 / 249.50
Mar21 247.25 / 249.25
Apr21 246.75 / 248.75
May21 246.25 / 248.25
Q1-21 247.50 / 249.50
Q2-21 246.25 / 248.25
Q3-21 244.00 / 246.00
Q4-21 240.00 / 243.00
CAL21 242.25 / 245.25
Rott VLSFO 0.5% INDIC
Dec20 312.50 / 317.50
Jan21 311.75 / 316.75
Feb21 312.00 / 317.00
Mar21 312.50 / 317.50
Apr21 313.25 / 318.25
May21 314.25 / 319.25
Q1-21 312.25 / 317.25
Q2-21 314.25 / 319.25
Q3-21 316.75 / 322.75
Q4-21 320.25 / 326.25
CAL21 315.75 / 321.75
Singapore VLSFO 0.5% INDIC
Dec20 333.50 / 338.50
Jan21 332.00 / 337.00
Feb21 332.00 / 337.00
Mar21 332.50 / 337.50
Apr21 333.25 / 338.25
May21 334.25 / 339.25
Q1-21 332.25 / 337.25
Q2-21 334.25 / 339.25
Q3-21 337.00 / 343.00
Q4-21 340.50 / 346.50
CAL21 335.75 / 341.75
ICE Gasoil 10ppm INDIC
Dec20 352.57 / 354.57
Jan21 357.36 / 359.36
Feb21 361.20 / 363.20
Mar21 364.66 / 366.66
Apr21 367.94 / 369.94
May21 370.53 / 372.53
Q1-21 361.05 / 363.05
Q2-21 370.82 / 372.82
Q3-21 379.61 / 381.61
Q4-21 386.14 / 388.14
CAL21 374.41 / 376.41
Sing 10ppm GO INDIC
Dec20 47.76 / 47.90
Jan21 47.85 / 48.05
Feb21 48.12 / 48.32
Mar21 48.50 / 48.70
Apr21 48.88 / 49.08
May21 49.27 / 49.47
Q1-21 48.15 / 48.35
Q2-21 49.24 / 49.44
Q3-21 50.49 / 50.69
Q4-21 51.36 / 51.56
CAL21 49.71 / 50.11
(Rott Hi5) Sing Hi5
Dec20 (66.19) 69.69
Jan21 (66.44) 71.44
Feb21 (67.19) 72.94
Mar21 (67.94) 74.19
Apr21 (69.19) 75.69
May21 (70.69) 77.19
Q1-21 (67.20) 72.85
Q2-21 (70.69) 77.19
Q3-21 (75.94) 81.69
Q4-21 (82.86) 86.36
CAL21 (73.00) 76.00