Brent crude futures for January rose 18 cents, or 0.4%, to $44.00 a barrel by 0737 GMT and U.S. West Texas Intermediate crude for December added 8 cents, or 0.2%, to $41.42 a barrel. However, as we entered the European open the market started to fall, dropping below the $44.
A vaccine that is 95% effective has been announced by Moderna, which prompted oil markets to increase by upwards of 3.5% on Monday as hopes of a return to some kind of normality may soon become a reality, in turn increasing fuel consumption globally.
US Shale output to drop 139,000 barrels per day to 7.51 million barrels per day in December as the falling oil prices have made it continually less viable to produce the costly shale product the EIA reported. The biggest decline is expected to come from the Permian basin of Texas and New Mexico where production is expected to fall 37,000 barrels per day. (Reuters)
Over the weekend, a trade deal was struck between 14 nations in Asia and the Pacific region, that will cover 28% of global trade. RCEP will form the world’s largest trading bloc. The deal has taken 8 years to form, and has great significance in global trade flows, even though it doesn’t go as deep at the EU trade bloc. (BBC News)
INDEX: (MTD Estimates)
* Sing 380: 263.33
* Rott 3.5%: 246.52
* Sing 0.5%: 326.11
* Rott 0.5%: 306.14
MARKETS NEWS:
* Oil Bears Make Biggest Retreat Since Virus-Led Crash: Chart
* Adnoc CEO Optimistic on Global Growth Led by U.S. and Asia
* EIA Sees U.S. Shale-Oil Falling 140K B/D to 7.51M B/D in Dec.
* U.S. October Drilled, Uncompleted Wells Fall to 7,558: EIA
* Nigeria Is In Talks With OPEC on Counting Agbami as Condensate
* Hyundai Heavy Wins 690b Won Order to Build 7 Crude Carriers
* Samsung Heavy Wins 194.6b Won Order to Build 3 Crude Carriers
* Kissinger Warns Biden of U.S.-China Catastrophe on Scale of WWI
* Bill Clinton Says China’s Direction Under Xi Upended U.S. Ties
OTHER NEWS:
* Big Oil Seeks Supreme Court Ruling to Derail Climate Litigation
* BP Plans 250Layoffs in Chicago, Reuters Says
* Petrobras Tests Market for Oil M&A With Large Offshore Sale
OIL PRODUCT NEWS:
* U.S.: Valero L.A. Refinery to Shut for Maintenance
* EUROPE: Gasoline Flows to U.S. Rise; Gasoil Bets
* ASIA: China Refining Climbs; Clean Fuel to Americas
ECONOMIC DATA: (Times are London. )
* OPEC+ Joint Ministerial Monitoring Committee meeting
* 9:30pm API weekly U.S. oil inventory report
* WoodMac virtual Energy Transition China Forum, day 1
ANALYST VIEWS:
* High-Sulfur Fuel Oil Margins Seen Firm on OPEC Extension: BofAML
* Covid-19 Vaccines Won’t Put The Brakes on U.S. Refiner Shutdowns
Rotterdam 3.5% INDIC
Dec20 250.25 / 252.25
Jan21 249.25 / 251.25
Feb21 248.75 / 250.75
Mar21 248.25 / 250.25
Apr21 247.75 / 249.75
May21 247.00 / 249.00
Q1-21 248.75 / 250.75
Q2-21 247.00 / 249.00
Q3-21 244.25 / 246.25
Q4-21 240.25 / 243.25
CAL21 243.00 / 249.00
Singapore 380 INDIC
Dec20 270.00 / 272.00
Jan21 266.75 / 268.75
Feb21 265.50 / 267.50
Mar21 264.50 / 266.50
Apr21 263.50 / 265.50
May21 262.75 / 264.75
Q1-21 265.75 / 267.75
Q2-21 262.75 / 264.75
Q3-21 260.75 / 262.75
Q4-21 259.00 / 262.00
CAL21 259.00 / 265.00
Rott VLSFO 0.5% INDIC
Dec20 313.50 / 318.50
Jan21 312.75 / 317.75
Feb21 313.25 / 318.25
Mar21 314.00 / 319.00
Apr21 315.00 / 320.00
May21 316.00 / 321.00
Q1-21 313.50 / 318.50
Q2-21 316.00 / 321.00
Q3-21 318.50 / 324.50
Q4-21 320.50 / 328.50
CAL21 315.00 / 323.00
Singapore VLSFO 0.5% INDIC
Dec20 337.00 / 342.00
Jan21 335.25 / 340.25
Feb21 335.00 / 340.00
Mar21 335.25 / 340.25
Apr21 336.00 / 341.00
May21 336.75 / 341.75
Q1-21 335.00 / 340.00
Q2-21 336.75 / 341.75
Q3-21 339.50 / 345.50
Q4-21 341.75 / 349.75
CAL21 334.00 / 342.00
Sing 10ppm GO INDIC
Dec20 47.79 / 47.93
Jan21 47.89 / 48.09
Feb21 48.16 / 48.36
Mar21 48.53 / 48.73
Apr21 48.90 / 49.10
May21 49.27 / 49.47
Q1-21 48.14 / 48.44
Q2-21 49.21 / 49.51
Q3-21 50.40 / 50.70
Q4-21 51.18 / 51.48
CAL21 49.68 / 50.08
ICE Gasoil 10ppm INDIC
Dec20 353.07 / 355.07
Jan21 357.89 / 359.89
Feb21 362.04 / 364.04
Mar21 365.08 / 367.08
Apr21 368.58 / 370.58
May21 371.80 / 373.80
Q1-21 361.65 / 363.65
Q2-21 371.75 / 373.75
Q3-21 380.36 / 382.36
Q4-21 388.08 / 390.08
CAL21 381.31 / 383.31
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