Brent crude futures climbed 40 cents, or 0.7%, to $59.24 a barrel by 0428 GMT, after hitting a high of $59.41, its highest since Feb. 20 last year. Brent is on track to rise 6% this week. U.S. West Texas Intermediate (WTI) crude futures jumped 42 cents, or 0.8%, to $56.65 a barrel, after touching a high of $56.84, its top since Jan. 22 last year. The benchmark contract is on track for a weekly gain of nearly 9%, which would be its biggest weekly gain since October.
The OPEC output cut have undoubtedly been positive for the oil market with oil above the $59 barrel mark this morning, further shown by the six-month backwardation in both the Brent and WTI spreads jumped to 13-month highs for both contracts at $2.41 and $2.30 a barrel, respectively. There are growing hopes that there will be some progression on the US stimulus package after stronger than expected set of figures from the US goods sector in December. (Reuters)
Chinese demand for crude oil is also helping support the market, as shown by industry tracking that reports two tankers of North Sea crude oil heading to China for March 22 and March 24, said Axi global market strategist Stephen Innes. “When demand drives commodity prices, it has a more bullish impact and leaves a more lasting reflection on price action,” Innes said in a note.
Malaysia has overtaken Brazil as the second largest exporter of crude to China. Total imports from Malaysia were up by 76.4% year on year. It was up 35.7% from the December 2020 level. Malaysian inflows comprised of bitumen blend and Nemina blend — all blended grades but not necessarily produced in Malaysia. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 338.65
* Rott 3.5%: 326.31
* Sing 0.5%: 451.92
* Rott 0.5%: 423.06
MARKETS NEWS:
* Europe Air Traffic’s Forecast-Beating Start to Feb. Under Threat
* Jet Fuel Accounts for Up to 30%-40% Lost Oil Demand: Shell CEO
* Texas Fuel Shipper NuStar Sees Market Close to Pre-Covid Levels
* OIL BAROMETERS: Physical Gauge Flips Positive; WTI Spreads Gain
* Debt-Laden Oil Majors in Retreat Mode Even as Crude Rallies
* OIL OPTIONS: 18 Million-Barrel Bet on WTI Backwardation to Widen
* Two VLCCs With North Sea Crude Sail to China After STS Transfers
* Alta Resources Exploring $3 Billion Shale Sale, Reuters Reports
* Benchmark Oil Tanker Earnings Deepen Plunge Below Zero
* Argentina Gasoline Demand in 2020 is Worst in Decade
OTHER NEWS:
* Rosneft’s Green Pledge With BP Challenged by Its Arctic Plans
* Exxon Mobil Is Said to Consider Adding Jeff Ubben to Board
* World’s Biggest Wealth Fund Set to Target National Oil Giants
OIL PRODUCT NEWS:
* U.S.: Nustar Says Oil Market Close to Pre-Pandemic
* EUROPE: Gasoil Stocks Grow in ARA; Jet Fuel Woes
* ASIA: Singapore’s Light Distillate Stockpiles Swell
ECONOMIC DATA/EVENTS: (Times are London.)
* 6pm: Baker Hughes weekly rig count
* 6:30pm: ICE Brent weekly commitment of traders
* 8:30pm: CFTC weekly commitment of traders data
* Shanghai exchange weekly commodities inventory
* EARNINGS: Neste Oyj
*Rotterdam 3.5% INDIC*
Mar21 332.00 / 334.00
Apr21 330.25 / 332.25
May21 327.50 / 329.50
Jun21 323.50 / 325.50
Jul21 319.25 / 321.25
Aug21 314.75 / 316.75
Q2-21 327.00 / 329.00
Q3-21 314.75 / 316.75
Q4-21 300.50 / 302.50
Q1-22 292.25 / 295.25
CAL22 280.75 / 286.75
*Singapore 380 INDIC*
Mar21 346.75 / 348.75
Apr21 344.75 / 346.75
May21 342.25 / 344.25
Jun21 339.25 / 341.25
Jul21 336.00 / 338.00
Aug21 332.50 / 334.50
Q2-21 342.00 / 344.00
Q3-21 332.50 / 334.50
Q4-21 321.75 / 323.75
Q1-22 314.50 / 317.50
CAL22 303.00 / 309.00
*Rott VLSFO 0.5% INDIC*
Mar21 431.25 / 436.25
Apr21 428.00 / 433.00
May21 424.75 / 429.75
Jun21 422.00 / 427.00
Jul21 419.25 / 424.25
Aug21 416.75 / 421.75
Q2-21 425.00 / 430.00
Q3-21 417.00 / 422.00
Q4-21 410.25 / 416.25
Q1-22 405.00 / 413.00
CAL22 389.75 / 397.75
*Singapore VLSFO 0.5% INDIC*
Mar21 456.00 / 461.00
Apr21 451.50 / 456.50
May21 448.00 / 453.00
Jun21 445.00 / 450.00
Jul21 442.25 / 447.25
Aug21 439.75 / 444.75
Q2-21 448.25 / 453.25
Q3-21 440.00 / 445.00
Q4-21 433.25 / 439.25
Q1-22 428.25 / 436.25
CAL22 419.00 / 427.00
*Sing 10ppm GO INDIC*
Mar21 65.01 / 65.15
Apr21 64.90 / 65.10
May21 64.83 / 65.03
Jun21 64.76 / 64.96
Jul21 64.68 / 64.88
Aug21 64.59 / 64.79
Q2-21 64.80 / 65.10
Q3-21 64.55 / 64.85
Q4-21 64.22 / 64.52
Q1-22 64.09 / 64.39
CAL22 63.82 / 64.22
*ICE Gasoil 10ppm INDIC*
Mar21 484.36 / 486.36
Apr21 484.80 / 486.80
May21 484.88 / 486.88
Jun21 484.70 / 486.70
Jul21 484.71 / 486.71
Aug21 484.67 / 486.67
Q2-21 484.80 / 486.80
Q3-21 484.73 / 486.73
Q4-21 482.87 / 484.87
Q1-22 476.79 / 478.79
CAL22 477.06 / 479.06
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