U.S. West Texas Intermediate (WTI) crude futures fell 36 cents, or 0.8%, to $46.63 a barrel at 0506 GMT, while Brent crude futures fell 40 cents, or 0.8%, to $49.89 a barrel, erasing Monday’s gains.
Shale oil production is expected to fall by about 136,000 barrels per day in January to 7.44 million barrels per day which would be the lowest level since June. Output at nearly all shale formations will be expected to fall, apart from that at the Haynesville region. (Reuters)
OPEC monthly report was released yesterday and the market responded negatively with Brent coming off by $1 over the 2 hours when the report was released. The main highlights of the report were that global demand was set to bounce back slower than previously anticipated due to the lingering effects of the COVID-19 pandemic, depressing the support that OPEC was extending to the market in form of production cuts and quotas. The growth forecast has been revised down by 350,000 barrels per day on total demand. (Reuters)
Middle East benchmark Dubai’s discount to ICE Brent futures narrowed in Asia trading Dec. 15 as Asian refiners show positive signs of refining margins bounce backs. The Brent/Dubai Exchange of Futures for Swaps was valued at 91 cents/b midmorning in Singapore on Dec. 15, narrowing 13 cents/b from $1.04/b at the Asian close on Dec. 14. (S&P Global Platts)
London and some surrounding areas will entering into the toughest tier 3 restrictions meaning bars and restaurants will have to shut until further notice, sparking fears of further demand-side fragilities.
INDEX: (MTD Estimates)
* Sing 380: 290.45
* Rott 3.5%: 269.25
* Sing 0.5%: 370.17
* Rott 0.5%: 352.95
MARKETS NEWS:
* Blast at Saudi Port Hits Oil Tanker as Red Sea Attacks Mount
* China’s Nov. Apparent Oil Demand Rises 8.4% Y/y
* OPEC Re-Schedules Oil Market Monitoring Meetings to Jan. 3-4
* Oil Sands Win Wall Street Favor After Years in Shale Shadow
* North Dakota Sees Its One-Time Oil Gushers Stalled Until 2022
* EIA Sees U.S. Shale-Oil Falling 137K B/D to 7.44M B/D in Jan.
* U.S. November Drilled, Uncompleted Wells Fall to 7,330: EIA
* U.S. Gasoline Demand Increased 1.6% Last Week: Descartes Labs
* Turkey Raises Gasoline Prices by 0.17 Lira Per Liter: Anadolu
OTHER NEWS:
* Exxon Sets New Emissions Goals Following Investor Criticism
* China’s Recovery Gathers Pace, Setting Up Strong Growth for 2021
* China’s Commodities Output Sets Records as the Recovery Rolls On
* Ghana Needs More Accountability Around Oil Sales, NRGI Says
* Mexico Gazettes Agreement Setting Special Tax Incentives for
Fuel Production, Services
OIL PRODUCT NEWS:
* U.S.: Demand Indications Split, Optimism on Travel
* EUROPE: Diesel Crack Touches Highest Since August
* ASIA: Singapore Marine Fuel Sales Up; Tanker Attack
ECONOMIC DATA: (Times are London. )
* 9am: IEA monthly Oil Market Report
* 9:30pm: API weekly U.S. oil inventory report
ANALYST VIEWS/COLUMNS:
* Still Questioning Oil Demand and Benchmarks, Even With Vaccine: BI
* High Oil Supply Shows Demand Still Below Pre-Covid Levels: Kpler
Singapore 380 INDIC
Jan21 294.50 / 296.50
Feb21 293.50 / 295.50
Mar21 292.75 / 294.75
Apr21 291.25 / 293.25
May21 289.50 / 291.50
Jun21 287.75 / 289.75
Q1-21 293.75 / 295.75
Q2-21 289.50 / 291.50
Q3-21 283.75 / 285.75
Q4-21 277.50 / 280.50
CAL21 285.50 / 291.50
Rotterdam 3.5% INDIC
Jan21 276.50 / 278.50
Feb21 276.75 / 278.75
Mar21 276.00 / 278.00
Apr21 274.25 / 276.25
May21 272.25 / 274.25
Jun21 270.00 / 272.00
Q1-21 276.50 / 278.50
Q2-21 272.00 / 274.00
Q3-21 264.75 / 266.75
Q4-21 256.25 / 259.25
CAL21 266.75 / 272.75
Singapore VLSFO 0.5% INDIC
Jan21 376.50 / 381.50
Feb21 377.25 / 382.25
Mar21 378.00 / 383.00
Apr21 378.50 / 383.50
May21 379.00 / 384.00
Jun21 379.50 / 384.50
Q1-21 377.25 / 382.25
Q2-21 379.00 / 384.00
Q3-21 379.25 / 385.25
Q4-21 379.25 / 385.25
CAL21 378.50 / 384.50
Rott VLSFO 0.5% INDIC
Jan21 358.25 / 363.25
Feb21 358.75 / 363.75
Mar21 359.25 / 364.25
Apr21 359.50 / 364.50
May21 359.75 / 364.75
Jun21 360.00 / 365.00
Q1-21 358.75 / 363.75
Q2-21 359.75 / 364.75
Q3-21 359.50 / 365.50
Q4-21 359.25 / 365.25
CAL21 359.25 / 365.25
Sing 10ppm GO INDIC
Jan21 55.98 / 56.12
Feb21 56.03 / 56.23
Mar21 56.10 / 56.30
Apr21 56.21 / 56.41
May21 56.32 / 56.52
Jun21 56.43 / 56.63
Q1-21 56.00 / 56.30
Q2-21 56.27 / 56.57
Q3-21 56.62 / 56.92
Q4-21 56.79 / 57.09
CAL21 56.37 / 56.77
ICE Gasoil 10ppm INDIC
Jan21 417.58 / 419.58
Feb21 420.11 / 422.11
Mar21 421.50 / 423.50
Apr21 422.49 / 424.49
May21 423.20 / 425.20
Jun21 424.29 / 426.29
Q1-21 419.75 / 421.75
Q2-21 423.33 / 425.33
Q3-21 426.80 / 428.80
Q4-21 428.20 / 430.20
CAL21 424.51 / 426.51
Rott Hi5 Sing Hi5
Jan21 83 83
Feb21 83 85
Mar21 85 87
Apr21 87 89
May21 89 91
Jun21 92 93
Q1-21 84 85
Q2-21 89 91
Q3-21 97 97
Q4-21 104 103
CAL21 92 93
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