Oil prices gained more than 1% on Wednesday, with U.S. crude rising for a seventh day, after industry data showed a bigger than expected drop in inventories and investors shrugged off worsening developments in the pandemic. Anger and uncertainty surrounding the impeachment of the current US president is seemingly have little to no effect on oil prices as oil continue to soar over the course of this week, hitting the $57 mark for the first time since early February,
U.S. West Texas Intermediate (WTI) was up 67 cents, or 1.3%, at $53.88 a barrel by 0420 GMT after gaining nearly 2% on Tuesday. Brent crude was up 79 cents, or 1.4%, at $57.37, having risen 1.7% in the previous session, before softening slightly into the European open.
A sell-off in the USD proved supportive for the market, while some further near-term support is likely to come from the API numbers which were released overnight, showing that US crude oil inventories fell by 5.82MMbbls over the last week. While the API reported a large decline in crude oil stocks, refined product inventories increased, with gasoline and distillate fuel oil stocks growing by 1.88MMbbls and 4.43MMbbls respectively. The more widely followed EIA weekly numbers will be released later today, and the market is expecting a crude oil drawdown in the region of 3MMbbls.
The EIA released its latest Short Term Energy Outlook yesterday, which also provided their first forecast for US crude oil production in 2022. For 2021, the EIA left its US crude oil production estimate unchanged at 11.1MMbbls/d, down 190Mbbls/d YoY, arguably bullish news on certainty of supply as we enter the new year, providing more hope for oil prices to be sustained. (ING)
INDEX: (MTD Estimates)
* Sing 380: 320.96
* Rott 3.5%: 307.89
* Sing 0.5%: 416.43
* Rott 0.5%: 390.07
MARKETS NEWS:
* Wintry Cold Yet to Ease Oil Refining Woes as Virus Hurts Demand
* Gasoline Profit Margins Rally as U.S. Refiners Ready for Summer
* Technical Indicators Suggest U.S. Crude Due for Breather: Chart
* European Fuel Is Flooding to U.S., But It’s Not Gasoline: Chart
* The UAE Warns U.S. Shale Companies Against Pumping More Oil
* Canadian Heavy Oil Strengthens on Supply Disruption Speculation
* API Reports U.S. Crude Stockpiles Fell 5.82M Bbl Last Week
* Gasoline Demand in 2022 Won’t Reach Pre-Pandemic Level: EIA
OTHER NEWS:
* Shell to Cut About 1,600 Jobs in the U.K. and Netherlands
* Chevron CEO Sees 2021 Recovery, Pledges Spending Discipline
* Asian LNG Breaks $30 Barrier as Cold Makes Traders Scramble
OIL PRODUCT WRAPS:
* U.S.: Margin Highest Since July, ‘22 Demand Outlook
* EUROPE: Pembroke Work; Total Buys ULSD for Le Havre
* ASIA: India’s LPG Surge; Power Demand Boosts LSFO
ECONOMIC DATA/EVENTS: (Times are London.)
* 3:30pm: EIA weekly U.S. oil inventory report
ANALYST COLUMNS:
* Oil Demand to Stagnate Until May on Slow Vaccination: FGE
* Oil’s Uptrend Faces Formidable Resistance at $58-$60/Bbl: BofA
Rotterdam 3.5% INDIC
Feb21 321.50 / 323.50
Mar21 320.25 / 322.25
Apr21 317.75 / 319.75
May21 315.25 / 317.25
Jun21 312.00 / 314.00
Jul21 308.00 / 310.00
Q2-21 315.00 / 317.00
Q3-21 304.00 / 306.00
Q4-21 293.00 / 295.00
Q1-22 286.25 / 289.25
CAL22 275.00 / 281.00
Singapore 380 INDIC
Feb21 334.00 / 336.00
Mar21 334.25 / 336.25
Apr21 332.75 / 334.75
May21 330.50 / 332.50
Jun21 327.75 / 329.75
Jul21 325.00 / 327.00
Q2-21 330.25 / 332.25
Q3-21 322.00 / 324.00
Q4-21 313.00 / 315.00
Q1-22 306.50 / 309.50
CAL22 297.25 / 303.25
Rott VLSFO 0.5% INDIC
Feb21 410.50 / 415.50
Mar21 408.50 / 413.50
Apr21 406.75 / 411.75
May21 405.00 / 410.00
Jun21 403.75 / 408.75
Jul21 402.50 / 407.50
Q2-21 405.25 / 410.25
Q3-21 401.25 / 406.25
Q4-21 398.25 / 404.25
Q1-22 396.25 / 404.25
CAL22 389.00 / 397.00
Singapore VLSFO 0.5% INDIC
Feb21 432.25 / 437.25
Mar21 429.75 / 434.75
Apr21 428.25 / 433.25
May21 427.00 / 432.00
Jun21 425.75 / 430.75
Jul21 424.75 / 429.75
Q2-21 427.00 / 432.00
Q3-21 423.75 / 428.75
Q4-21 421.25 / 427.25
Q1-22 419.75 / 427.75
CAL22 412.25 / 420.25
Sing 10ppm GO INDIC
Feb21 62.01 / 62.15
Mar21 62.19 / 62.39
Apr21 62.26 / 62.46
May21 62.27 / 62.47
Jun21 62.28 / 62.48
Jul21 62.36 / 62.56
Q2-21 62.20 / 62.50
Q3-21 62.37 / 62.67
Q4-21 62.32 / 62.62
Q1-22 62.56 / 62.86
CAL22 62.21 / 62.61
ICE Gasoil 10ppm INDIC
Feb21 464.75 / 466.75
Mar21 464.75 / 466.75
Apr21 465.35 / 467.35
May21 465.66 / 467.66
Jun21 466.29 / 468.29
Jul21 467.25 / 469.25
Q2-21 465.75 / 467.75
Q3-21 467.85 / 469.85
Q4-21 467.44 / 469.44
Q1-22 465.83 / 467.83
CAL22 466.57 / 468.57