U.S. West Texas Intermediate (WTI) crude futures fell 24 cents, or 0.5%, to $53.07 a barrel at 0500 GMT, following two days of gains on expectations of massive COVID-19 relief spending under new U.S. President Joe Biden. Brent crude futures dropped 22 cents, or 0.4%, to $55.86 a barrel.
U.S. crude oil inventories rose 2.6 million barrels in the week to Jan. 15, according to data from the American Petroleum Institute, compared with analysts’ forecasts in a Reuters poll for a fall of 1.2 million barrels, with S&PP analysts expecting a draw of around 2.5 million barrels. This is bearish news given the circumstances, and as a result oil softened throughout the night. Gasoline and Distillate inventories continued to rise, albeit less than expected.
Oil market participants are ready for the Biden administration to inject a huge stimulus into the US economy in a bid to fight the Coronavirus pandemic which could support oil prices, amongst other factors in the global economy.
Elsewhere, Japan’s crude oil imports are looking as if they are to fall by 5%-10% in 2021 as growing coronavirus cases halt travels and demand, yet kerosene demand is surging year on year in January as the cold weather takes hold. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 324.49
* Rott 3.5%: 310.75
* Sing 0.5%: 423.90
* Rott 0.5%: 397.00
MARKETS NEWS:
* Venezuela Warns Oil Majors to Boost Output or Prepare Exit
* Chinese Imports of Iran Oil Grew Before Biden Presidency: Chart
* Diesel Prices Go Weird in Sign of Covid’s Uneven Demand Hit
* China’s Implied Oil Inventory Has Record Draw Amid Refining Gain
* Northern California Traffic Shows Lingering Viral Pall on Demand
* API Reports U.S. Crude Stockpiles Rose 2.56M Bbl Last Week
* Russian Crude Supplies to Belarus Refineries at 3.2M Tons in 1Q
OTHER NEWS:
* Biden’s Keystone ‘Insult’ Sees Alberta Leader Urging Retaliation
* Trudeau Says He ‘Acknowledges’ Biden Decision on Keystone
* Gulf Oil, Clean Growth Fund Invest in U.K. EV Charging Firm
* Trafigura Deal Values Russian Arctic Oil Project at $85 Billion
OIL PRODUCT NEWS:
* U.S.: California Traffic Shows Viral Pall on Demand
* EUROPE: Strongest Pull From Latin America in 10 Mos
* ASIA: MRPL Sells Jan. Naphtha; China Demand Fears
ECONOMIC DATA:
* Singapore onshore oil-product stockpile weekly data
* Russian weekly refinery outage data from ministry
* Insights Global report on European product stocks in ARA region
* Atlantic Council Global Energy Forum, day 3 of 3
* EARNINGS: Baker Hughes
ANALYST VIEWS/COLUMNS:
* Fitch Solutions Getting More Bearish on High-Sulfur Fuel Oil
* JPMorgan Cuts China Demand Forecasts as Lockdowns Spread
* Keystone XL Couldn’t Survive a Changed Climate: Liam Denning
OTHER FINANCIAL MARKETS:
* Global Stocks Rise to Record High; Dollar Slips: Markets Wrap
*Rotterdam 3.5% INDIC*
Feb21 313.50 / 315.50
Mar21 313.00 / 315.00
Apr21 311.00 / 313.00
May21 308.00 / 310.00
Jun21 304.75 / 306.75
Jul21 301.25 / 303.25
Q2-21 308.00 / 310.00
Q3-21 297.50 / 299.50
Q4-21 286.00 / 288.00
Q1-22 279.00 / 282.00
CAL22 271.75 / 277.75
*Singapore 380 INDIC*
Feb21 325.25 / 327.25
Mar21 325.50 / 327.50
Apr21 324.25 / 326.25
May21 322.00 / 324.00
Jun21 319.50 / 321.50
Jul21 317.00 / 319.00
Q2-21 321.75 / 323.75
Q3-21 314.00 / 316.00
Q4-21 306.00 / 308.00
Q1-22 299.75 / 302.75
CAL22 294.00 / 300.00
*Rott VLSFO 0.5% INDIC*
Feb21 405.75 / 410.75
Mar21 403.50 / 408.50
Apr21 401.50 / 406.50
May21 399.50 / 404.50
Jun21 397.75 / 402.75
Jul21 396.00 / 401.00
Q2-21 399.50 / 404.50
Q3-21 394.50 / 399.50
Q4-21 389.50 / 395.50
Q1-22 386.75 / 394.75
CAL22 382.75 / 390.75
*Singapore VLSFO 0.5% INDIC*
Feb21 429.25 / 434.25
Mar21 426.25 / 431.25
Apr21 423.75 / 428.75
May21 421.50 / 426.50
Jun21 419.50 / 424.50
Jul21 417.75 / 422.75
Q2-21 421.75 / 426.75
Q3-21 416.25 / 421.25
Q4-21 411.50 / 417.50
Q1-22 409.25 / 417.25
CAL22 406.00 / 414.00
*Sing 10ppm GO INDIC*
Feb21 60.94 / 61.08
Mar21 61.04 / 61.24
Apr21 61.12 / 61.32
May21 61.11 / 61.31
Jun21 61.09 / 61.29
Jul21 61.17 / 61.37
Q2-21 61.05 / 61.35
Q3-21 61.16 / 61.46
Q4-21 61.00 / 61.30
Q1-22 61.22 / 61.52
CAL22 60.99 / 61.39
*ICE Gasoil 10ppm INDIC*
Feb21 456.05 / 458.05
Mar21 457.93 / 459.93
Apr21 458.75 / 460.75
May21 459.41 / 461.41
Jun21 460.34 / 462.34
Jul21 461.38 / 463.38
Q2-21 459.50 / 461.50
Q3-21 462.00 / 464.00
Q4-21 461.67 / 463.67
Q1-22 464.35 / 466.35
CAL22 460.59 / 462.59
Rott Hi5Sing Hi5
Feb21 93.60 105.60
Mar21 91.85 102.35
Apr21 91.85 101.10
May21 92.85 101.10
Jun21 94.35 101.60
Jul21 96.10 102.35
Q2-21 93.05 101.30
Q3-21 98.43 103.77
Q4-21 105.35 107.52
Q1-22 110.02 111.93
CAL22 112.00 113.00
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