Brent crude futures for March fell 12 cents, or 0.2%, to $50.97 a barrel by 0437 GMT, while U.S. West Texas Intermediate crude for February was at $47.56 a barrel, down 6 cents, or 0.1.
US Stock fell by nearly 2% on Monday as Oil hit Multi-month highs before falling off as the OPEC+ meeting caused disagreements between major oil producing nations over the current output quotas which left the market with a sense of unease as the European close came. Meetings will continue into Tuesday. The S&P 500 and the Dow also fell from record levels on the first trading day of the year as President Donald Trump travels to Georgia in a bid to keep the U.S. Senate in the hands of his Republican Party. (Reuters)
A full day of negotiations, including first a ministerial monitoring committee meeting, followed by the full OPEC+ conference, failed to budge Russia off its position that the coalition should increase crude production by 500,000 b/d in February to reclaim market share lost to the coronavirus pandemic. Many other nations were in favour of the current output quotas being rolled on to February as the fallout from the increasing coronavirus cases continues. (S&P Global Platts)
The 37 trades on Jan. 4, the equivalent of 74,000 mt, spread across the front-, middle and back-end window dates marking a busy start to 2021. Elsewhere, the 3.5%S FOB Rotterdam barge crack had fallen in recent weeks — last assessed on Dec. 31 at minus $6.591/b, down from minus $5.890/b a month earlier. Meanwhile, 0.5%S marine fuel maintained its position as the most valuable transport fuel, with the crack assessed Dec. 31 at $6.795/b, as coronavirus demand fallout continued to weigh.
In the East, traded volumes of MF 0.5%S in December were unchanged from November’s 80,000 mt, S&P Global Platts data showed, despite expectations from sources that arbitrage cargoes from the West to Singapore in January would drop by about 500,000 mt on the month to around 2 million-2.5 million mt. Imports from Europe dropped to 83,500 mt in the week of Dec. 24-30, down 22.8% from a week earlier.
In other news, the Port of Rotterdam extended a run of 1%/year increases in port tariffs over the last three years to 2021, amid an uncertain period for shipping in Northwest Europe, the port authority said in a press release Jan. 4 it comes as deliveries of COVID-19 vaccines and PPE, together with high demand for online deliveries, have put pressure on shipping in many countries and as trade between the UK and European Union faces tariffs and wait times, following the end of the Brexit transition period. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 312.35
* Rott 3.5%: 281.75
* Sing 0.5%: 409.60
* Rott 0.5%: 369.00
MARKETS NEWS:
* Iran Seizes Ship, Ramps Up Enrichment as Gulf Tensions Mount
* S. Korea-Flagged Oil Tanker Still Being Held Off Iran: Shipowner
* Saudi Oil Minister Urges OPEC+ Caution Despite Vaccine Optimism
* Fuel Supply Contracts Skipped in Asia With Demand Precarious
* Swelling Iraqi Oil Sales Signal Trouble for OPEC+ Output Talks
* Saudi Arabia’s Oil Exports Hit Eight-Month High in December
* Suncor Begins ‘Slow’ Restart of Fort Hills Oil Sands Mine
* U.S. Diesel, Jet Fuel Imports From Europe Outpace Gasoline
* U.S. Gasoline Demand Decreased 3.4% Last Week: Descartes Labs
* Brazil Oil Output 2.755 Mln b/d in Nov. : Regulator
OTHER NEWS:
* Andurand Hedge Fund Soared 154% in 2020 as Pandemic Roiled Oil
* Hyundai to Build Hydrogen Fuel Cell Factory in China: Yonhap
OIL PRODUCT NEWS:
* U.S.: Gasoline Demand Falls Amid Sinking Outlook
* EUROPE: ICE Gasoil Bets Rise; Gelsenkirchen; Bilbao
* ASIA: China Diesel Demand Surge; Clean Fuels Flow
ECONOMIC DATA: (Times are London.)
* 9:30pm: API weekly U.S. oil inventory report
* OPEC+ ministerial meeting on output continues
* Bloomberg survey on OPEC December production (tentative)
* HOLIDAY: Russia
ANALYST VIEWS/COLUMNS:
* Gasoline Demand to Get Worse Before Better: Energy Aspects
OTHER FINANCIAL MARKETS:
* Asia Stocks Dip on Virus Spike; Gold Holds Gain: Markets Wrap
*Rotterdam 3.5% INDIC*
Feb21 281.00 / 283.00
Mar21 280.00 / 282.00
Apr21 277.75 / 279.75
May21 275.25 / 277.25
Jun21 272.75 / 274.75
Jul21 270.25 / 272.25
Q2-21 275.25 / 277.25
Q3-21 267.50 / 269.50
Q4-21 259.50 / 261.50
Q1-22 254.50 / 257.50
CAL22 254.25 / 260.25
*Singapore 380 INDIC*
Feb21 297.25 / 299.25
Mar21 296.50 / 298.50
Apr21 294.75 / 296.75
May21 292.75 / 294.75
Jun21 290.75 / 292.75
Jul21 288.00 / 290.00
Q2-21 292.75 / 294.75
Q3-21 285.75 / 287.75
Q4-21 280.50 / 282.50
Q1-22 277.00 / 280.00
CAL22 276.25 / 282.25
*Rott VLSFO 0.5% INDIC*
Feb21 362.75 / 367.75
Mar21 362.00 / 367.00
Apr21 361.50 / 366.50
May21 361.00 / 366.00
Jun21 360.50 / 365.50
Jul21 360.00 / 365.00
Q2-21 361.00 / 366.00
Q3-21 359.50 / 364.50
Q4-21 357.00 / 363.00
Q1-22 354.75 / 362.75
CAL22 350.25 / 358.25
*Singapore VLSFO 0.5% INDIC*
Feb21 385.50 / 390.50
Mar21 384.00 / 389.00
Apr21 383.50 / 388.50
May21 383.25 / 388.25
Jun21 383.00 / 388.00
Jul21 383.00 / 388.00
Q2-21 383.25 / 388.25
Q3-21 383.00 / 388.00
Q4-21 382.50 / 388.50
Q1-22 381.75 / 389.75
CAL22 373.25 / 381.25
*Sing 10ppm GO INDIC*
Feb21 55.67 / 55.81
Mar21 55.80 / 56.00
Apr21 56.00 / 56.20
May21 56.16 / 56.36
Jun21 56.25 / 56.45
Jul21 56.42 / 56.62
Q2-21 56.10 / 56.40
Q3-21 56.52 / 56.82
Q4-21 56.77 / 57.07
Q1-22 57.10 / 57.40
CAL22 56.31 / 56.71
*ICE Gasoil 10ppm INDIC*
Feb21 418.38 / 420.38
Mar21 418.38 / 420.38
Apr21 420.03 / 422.03
May21 421.52 / 423.52
Jun21 423.07 / 425.07
Jul21 424.58 / 426.58
Q2-21 421.55 / 423.55
Q3-21 425.94 / 427.94
Q4-21 429.61 / 431.61
Q1-22 434.43 / 436.43
CAL22 425.05 / 427.05