Brent crude was up 51 cents, or 0.9%, at $56.86 a barrel by 0630 GMT, while U.S. oil gained 53 cents, or 1%, to $54.08 a barrel. Both contracts rose more than 2% in the previous session.
Oil output from OPEC nations increased by around 160,000 barrels per day as the new output cuts came into play on the first day of the month this week, with Saudi reducing output of oil by one million barrels per day in order that countries such as Russia are able to increase output slowly whilst maintaining an equilibrium between supply and demand in the oil market, and as a result sustaining prices. The supply and demand fundamentals are bullish and the the gap between the two are narrowing and the result points to slowly rising prices as the light at the end of the tunnel can be seen as the global economy looks to recover from the effects of Covid-19.
Colder snaps in the US have driven up demand for heating and as a result heating oil, which is a similar trend in Asia over the winter months, offering hope for oil demand as travel over the Chinese New Year period has been heavily discouraged as China still battles with increasing cases of the Coronavirus.
BP’s fourth quarter profit sank to $100 million, in a sign that oil demand through the pandemic is still sluggish as cases continue to rise even with vaccine rollouts on track. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 328.86
* Rott 3.5%: 316.75
* Sing 0.5%: 439.67
* Rott 0.5%: 408.50
MARKETS NEWS:
* Oil Market Structure Points to Global Stockpiles Falling Fast
* OPEC+ Success With Oil Strategy Buys Time Before Tough Choices
* Iraq Exports Signal That It Missed Target to Lower Oil Output
* Iranian Vessels Discharge Gasoline at Venezuela’s Puerto La Cruz
* U.S. Diesel Imports From Europe Persist, Though at Slower Pace
* Ekofisk, Troll Crude Loadings for March Revised Up on Deferrals
* Benchmark Oil Tanker Rates Fall Again; WAF-Europe Dips Too
* Spain’s Gasoline Sales Slumped 15% Y/y in Dec.; Diesel -7.1%
* Brazil Fuel Consumption Falls in 2020; Only Diesel Sees Gains
* Oil Loading at Russian Ports Seen Falling to 7.69m Tons in Feb.
* Adnoc to Keep Murban Crude OSP Unchanged M/m for March: Survey
OTHER NEWS:
* Exxon’s New Carbon Capture Plan Looks a Lot Like Its Old One
* How China’s Private Refiners Upended the Oil Market: QuickTake
* New Oil Group Drops Oil From Name in Nod to Low-Carbon Future
* Exxon Is Said to Be in Talks With D.E. Shaw Over New Directors
* Marathon Petroleum Names New Chief Commercial Officer
OIL PRODUCT WRAPS:
* U.S.: FCCs Undergo Repairs at Lake Charles, Tulsa
* EUROPE: BP and Total Halt Hydrocrackers; Primorsk
* ASIA: Fuel Rebound Hits Hurdle; India’s Sales Drop
ECONOMIC DATA/EVENTS: (Times are London.)
* 9:30pm: API weekly oil inventory report
* Egyptian Oil Minister Tarek El Molla on Bloomberg TV
* EGM: Sinopec Oilfield Service
* EARNINGS: Exxon Mobil, BP Plc, ConocoPhillips, Marathon Petroleum Corp., MPLX, Magellan Midstream Partners LP, Imperial Oil Ltd.
ANALYST VIEWS/COLUMNS:
* Refining Margins Under Pressure as PRefChem, Jizan Ramp Up: JBC
* March Brent’s Strong Finish Indicates Stronger Physical Oil: RBC
* Exxon-Chevron Merger Has ‘Financial Merits,’ JPMorgan Says
Sing VLSFO 0.5% INDIC
Mar-21 440.25 / 442.75
Apr-21 436.00 / 439.00
May-21 433.00 / 436.00
Jun-21 430.25 / 433.75
Jul-21 428.00 / 431.50
Aug-21 425.75 / 429.75
Q2-21 432.50 / 436.50
Q3-21 425.50 / 430.00
Q4-21 420.00 / 425.00
Q1-22 415.50 / 421.50
CAL22 412.75 / 418.75
Rott VLSFO 0.5% INDIC
Mar-21 415.25 / 417.75
Apr-21 412.50 / 415.50
May-21 410.25 / 413.25
Jun-21 407.75 / 411.25
Jul-21 405.75 / 409.25
Aug-21 403.50 / 407.50
Q2-21 409.75 / 413.75
Q3-21 403.25 / 407.75
Q4-21 397.75 / 402.75
Q1-22 393.75 / 399.75
CAL22 391.75 / 397.75
Sing 10ppm GO INDIC
Mar-21 62.35 / 62.47
Apr-21 62.27 / 62.41
May-21 62.18 / 62.34
Jun-21 62.11 / 62.29
Jul-21 62.07 / 62.25
Aug-21 62.04 / 62.24
Q2-21 62.19 / 62.37
Q3-21 62.01 / 62.21
Q4-21 61.85 / 62.09
Q1-22 61.74 / 62.04
CAL22 61.73 / 62.03
ICE Gasoil 10ppm INDIC
Mar-21 465.00 / 466.00
Apr-21 465.25 / 466.25
May-21 465.50 / 466.50
Jun-21 465.50 / 467.00
Jul-21 466.00 / 467.50
Aug-21 466.50 / 468.00
Q2-21 465.50 / 466.50
Q3-21 466.75 / 468.25
Q4-21 466.75 / 468.25
Q1-22 465.50 / 468.00
CAL22 465.00 / 468.00
Sing 380 cst INDIC
Mar-21 334.75 / 336.25
Apr-21 332.75 / 334.25
May-21 330.00 / 332.00
Jun-21 327.25 / 329.25
Jul-21 324.00 / 326.50
Aug-21 321.00 / 323.50
Q2-21 329.50 / 332.00
Q3-21 320.50 / 323.50
Q4-21 311.25 / 314.25
Q1-22 305.25 / 308.75
CAL22 298.25 / 303.25
Rotterdam 3.5% INDIC
Mar-21 320.50 / 322.00
Apr-21 318.75 / 320.25
May-21 315.50 / 317.50
Jun-21 312.00 / 314.00
Jul-21 308.00 / 310.50
Aug-21 303.75 / 306.25
Q2-21 315.00 / 317.50
Q3-21 303.50 / 306.50
Q4-21 291.00 / 294.00
Q1-22 284.00 / 287.50
CAL22 277.25 / 282.25
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