Brent crude futures were down 5 cents, or 0.1% to $44.17 a barrel at 0744 GMT. U.S. West Texas Intermediate crude contract was down at $41.90 a barrel. The WTI contract for November, which expires on today, was also flat at $41.74 per barrel.
The news of vaccine efficacy is having positive reverberations around the markets this week, with both Pfizer and Moderna producing a vaccine with around 95% effective rates of preventing the worst symptoms of COVID-19, pushing oil up over the course of the week.
The US has seen a flurry of shale producers file for bankruptcy as the cost of production of the shale products continue to rise above that of the cost of raw material. 17 filed for bankruptcy for in the 3rd quarter whilst another three firms filed in October alone, reflecting increasing challenges for the sector. (Oilprice.com)
Brent crude oil futures spread narrowed significantly as demand from Asia remains strong. The front month contango for the Brent contract stood at -12, the lowest level since July, attributed to the OPEC+ suggested supply cuts continuing into the new year and strong Asia demand. (Reuters)
Japan oil chief has confirmed that he expects planned output increases to be pushed back and stick to the current cuts of 7.7 million barrels per day worth of cuts. The resurgence of the coronavirus and the weakening demand for oil as a result has prompted the cartel to rethink strategy. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 267.19
* Rott 3.5%: 247.38
* Sing 0.5%: 330.49
* Rott 0.5%: 308.57
MARKETS NEWS:
- China Oct. Gasoline Output Fell 4.7% Y/y to 11.902m Tons
- European Air Traffic Still Down More Than 60% Y/y: Eurocontrol
- Central China State Refinery Run Rates Fell Most, SCI99 Says
- Petrobras’s FPSO in Tupi Oil Field Has Virus Outbreak: Union
- Rhine Operator Has Seen Big Drop in Diesel Moving Inland in 2H
- BP Backtracks on $3.2 Billion Brazil Offshore Acquisition
OTHER NEWS:
- After Trump’s Embrace, Saudi Arabia May Find Biden Is Not So Bad
- Some Fracking Sand Was ‘Revolutionary’ or Maybe It Was Just Sand
- Texas Posts 12,293 New Virus Cases, Smashing Mid-July Record
- Arctic Oil Fight Comes to Insurers as Trump Plans Lease Sale
OIL PRODUCT NEWS:
- U.S.: Morgan Stanley Bullish on Refining Margins
- EUROPE: Gasoline Crack Collapse; Greek Term Tender
- ASIA: Singapore Fuel Oil Inventory at Two-Month Low
ECONOMIC DATA/EVENTS: (Times are London.)
- 6:00pm: Baker Hughes weekly rig count report
- 8:30pm: CFTC Commitments of Traders report
- Shanghai exchange weekly commodities inventory
- CNOOC Extraordinary General Meeting
ANALYST VIEWS/COLUMNS:
- Chinese Crude Stockpiles Drop Five Out of Past Seven Weeks: Ursa
- Emerging Asia Oil Demand Rebound to Lag China: Capital Economics
- Morgan Stanley Sees Bullish Case for Late 2021 Refining Margins
*Rotterdam 3.5% INDIC*
Dec20 256.00 / 258.00
Jan21 255.25 / 257.25
Feb21 254.50 / 256.50
Mar21 254.00 / 256.00
Apr21 253.25 / 255.25
May21 252.25 / 254.25
Q1-21 254.50 / 256.50
Q2-21 252.25 / 254.25
Q3-21 249.00 / 251.00
Q4-21 244.50 / 247.50
CAL21 244.00 / 250.00
*Singapore 380 INDIC*
Dec20 274.50 / 276.50
Jan21 270.50 / 272.50
Feb21 268.75 / 270.75
Mar21 267.75 / 269.75
Apr21 266.75 / 268.75
May21 265.75 / 267.75
Q1-21 269.00 / 271.00
Q2-21 265.75 / 267.75
Q3-21 263.50 / 265.50
Q4-21 261.25 / 264.25
CAL21 260.25 / 266.25
*Rott VLSFO 0.5% INDIC*
Dec20 320.75 / 325.75
Jan21 320.75 / 325.75
Feb21 321.25 / 326.25
Mar21 321.75 / 326.75
Apr21 322.25 / 327.25
May21 322.75 / 327.75
Q1-21 321.25 / 326.25
Q2-21 322.75 / 327.75
Q3-21 323.75 / 329.75
Q4-21 324.75 / 332.75
CAL21 318.00 / 326.00
*Singapore VLSFO 0.5% INDIC*
Dec20 344.75 / 349.75
Jan21 342.25 / 347.25
Feb21 341.25 / 346.25
Mar21 340.25 / 345.25
Apr21 340.25 / 345.25
May21 340.50 / 345.50
Q1-21 341.25 / 346.25
Q2-21 340.50 / 345.50
Q3-21 341.50 / 347.50
Q4-21 342.50 / 350.50
CAL21 336.25 / 344.25
*Sing 10ppm GO INDIC*
Dec20 49.09 / 49.23
Jan21 49.17 / 49.37
Feb21 49.41 / 49.61
Mar21 49.73 / 49.93
Apr21 50.05 / 50.25
May21 50.37 / 50.57
Q1-21 49.39 / 49.69
Q2-21 50.32 / 50.62
Q3-21 51.43 / 51.73
Q4-21 52.24 / 52.54
CAL21 50.79 / 51.19
*ICE Gasoil 10ppm INDIC*
Dec20 364.23 / 366.23
Jan21 367.82 / 369.82
Feb21 371.40 / 373.40
Mar21 373.88 / 375.88
Apr21 376.75 / 378.75
May21 379.63 / 381.63
Q1-21 371.05 / 373.05
Q2-21 379.58 / 381.58
Q3-21 387.64 / 389.64
Q4-21 393.71 / 395.71
CAL21 387.28 / 389.28
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