Brent crude futures ended up 1.6% last night as the expectation of positive news from the OPEC meeting due today kept the market buoyant, although prices fell overnight. At 0700GMT there was some buying activity which lifted the price to $48.26 per barrel.
EIA week ending 11/27
Crude oil: -0.7M
Gasoline: +3.5M
Distillates: +3.2M
Refiner utilz: 78.2%
Impld mogas demand: 7.97 Mbpd
US Crude stocks fell by just under 700k barrels as the EIA released figures from the last week on the inventory situation, a positive snippet of news in the way of demand recovery and oil prices being sustained at current levels.
OPEC+ members are due to initiate talks today over the oil output cuts that may or may not remain into the new year, although sources close to the group have hinted at the fact that the current cuts could stay in place for the first quarter of the new year in a bid to mitigate the loss of demand in the wake of the Covid-19 pandemic.
The UK becomes the first nation to officially approve a COVID-19 vaccine, which looks to pave the way for the new normal and the resumption of travel globally, which would undoubtedly support the levels of Brent into the new year.
INDEX: (MTD Estimates)
* Sing 380: 287.09
* Rott 3.5%: 263.63
* Sing 0.5%: 361.56
* Rott 0.5%: 343.63
MARKETS NEWS:
OPEC Output Rises as Libya Rebound Adds to Meeting Complications
OPEC Core’s Oil Exports Drop Before Face-Off Over Output Targets
Japan Said to Plan Phase-Out of New Gasoline Cars by Mid-2030s
Alaska Oil Exports Soar as China Picks Up Slack From West Coast
U.S. Imports of Saudi Crude Oil Fall to Lowest in Three Decades
U.S. Crudes Rising Amid Wider WTI-Brent Spread, Alliance Return
OTHER NEWS:
Pioneer Lays Out Targets to Reduce Emissions Intensity by 2030
Chevron Names Mark Hatfield as Head of Australia Business
Pemex Is No Longer Active in Oil Industry’s Key Climate Group
Petrobras CEO Calls Net Zero a Fad, Echoing Exxon Oil Focus
Engie Is Said to Line Up Banks for $6 Billion Services Disposal
OIL PRODUCT WRAPS:
U.S.: Alliance Restart Coming, Strong Rockies ULSD
EUROPE: Donges; Pernis; Russian Gasoil Div
08:41:23 Ben RobbinsGasoil Diverts
ASIA: Interest in BPCL Sale; Diesel-Laden VLCC
ECONOMIC DATA:
Singapore onshore oil-product stockpile weekly data
Russian weekly refinery outage data from ministry
Insights Global report on European product inventories in ARA region
ANALYST VIEWS:
OPEC+ Likely to Agree on 1-2 Mo. Extension of Output Cuts: Citi
Oil Demand Too Fragile to Absorb Planned OPEC+ Output Hike: JPM
Too Much at Stake for OPEC+ Not to Reach Deal: BofA’s Blanch
RBC Projects Narrower WCS Discount to WTI on New Pipelines
OTHER FINANCIAL MARKETS:
Stocks Pause Around Record High; Dollar Slips: Markets Wrap
(Data and news FIS/Bloomberg)
Singapore 380 INDIC
Jan21 286.75 / 288.75
Feb21 285.50 / 287.50
Mar21 284.75 / 286.75
Apr21 283.50 / 285.50
May21 282.00 / 284.00
Jun21 280.25 / 282.25
Q1-21 285.75 / 287.75
Q2-21 282.00 / 284.00
Q3-21 276.75 / 278.75
Q4-21 271.50 / 274.50
CAL21 273.75 / 279.75
Rotterdam 3.5% INDIC
Jan21 270.00 / 272.00
Feb21 269.75 / 271.75
Mar21 268.75 / 270.75
Apr21 267.25 / 269.25
May21 265.50 / 267.50
Jun21 263.25 / 265.25
Q1-21 269.50 / 271.50
Q2-21 265.25 / 267.25
Q3-21 258.75 / 260.75
Q4-21 251.25 / 254.25
CAL21 256.75 / 262.75
Singapore VLSFO 0.5% INDIC
Jan21 361.25 / 366.25
Feb21 362.00 / 367.00
Mar21 362.75 / 367.75
Apr21 363.50 / 368.50
May21 364.25 / 369.25
Jun21 365.00 / 370.00
Q1-21 362.00 / 367.00
Q2-21 364.25 / 369.25
Q3-21 365.75 / 371.75
Q4-21 367.25 / 373.25
CAL21 364.50 / 370.50
Rott VLSFO 0.5% INDIC
Jan21 341.25 / 346.25
Feb21 342.25 / 347.25
Mar21 343.00 / 348.00
Apr21 343.75 / 348.75
May21 344.50 / 349.50
Jun21 345.25 / 350.25
Q1-21 342.00 / 347.00
Q2-21 344.50 / 349.50
Q3-21 346.25 / 352.25
Q4-21 348.00 / 354.00
CAL21 345.00 / 351.00
Sing 10ppm GO INDIC
Jan21 52.77 / 52.91
Feb21 53.01 / 53.21
Mar21 53.30 / 53.50
Apr21 53.59 / 53.79
May21 53.85 / 54.05
Jun21 54.10 / 54.30
Q1-21 52.95 / 53.25
Q2-21 53.80 / 54.10
Q3-21 54.54 / 54.84
Q4-21 55.02 / 55.32
CAL21 54.03 / 54.43
ICE Gasoil 10ppm INDIC
Jan21 395.65 / 397.65
Feb21 398.35 / 400.35
Mar21 400.72 / 402.72
Apr21 402.80 / 404.80
May21 404.54 / 406.54
Jun21 406.57 / 408.57
Q1-21 398.25 / 400.25
Q2-21 404.64 / 406.64
Q3-21 410.34 / 412.34
Q4-21 415.44 / 417.44
CAL21 407.17 / 409.17
Rott Hi5 Sing Hi5
Jan21 73 76
Feb21 74 78
Mar21 76 80
Apr21 78 82
May21 80 84
Jun21 83 86
Q1-21 74 78
Q2-21 81 84
Q3-21 89 91
Q4-21 98 97
CAL21 88 91
The information provided in this communication is not intended for retail clients. It is general in nature only and does not constitute advice or an offer to sell, or the solicitation of an offer to purchase any swap or other financial instruments, nor constitute any recommendation on our part. The information has been prepared without considering your investment objectives, financial situation, or knowledge and experience. This material is not a research report and is not intended as such. FIS is not responsible for any trading decisions taken based on this communication. Trading swaps and over-the-counter derivatives, exchange-traded derivatives, and options involve substantial risk and are not suitable for all investors. You are advised to perform an independent investigation to determine whether a transaction is suitable for you. No part of this material may be copied or duplicated in any form by any means or redistributed without our prior written consent. Freight Investor Services Ltd (FIS) is authorised and regulated by the Financial Conduct Authority (FRN: 211452) and is a member of the National Futures Association (“NFA”). Freight Investor Services PTE Ltd (‘FIS PTE’) is a private limited company, incorporated and registered in Singapore with company number 200603922G, and has subsidiary offices in India and Shanghai. Freight Investor Solutions DMCC (‘FIS DMCC’) is a private limited company, incorporated and registered in Dubai with company number DMCC1225. Further information about FIS including the location of its offices can be found on our website at www.freightinvestorservices.com