Brent crude was down 47 cents, or 0.8% at $60.67 a barrel by 0309 GMT, having dropped half a percent the previous session. U.S. oil was down 53 cents, or 0.9% at $57.71 a barrel, after falling by 0.8% on Thursday. Both benchmarks closed on Wednesday at their highest levels since January 2020 after a nearly record-setting run of consecutive daily gains.
Oil prices have been sustained recently by the output cuts imposed by OPEC and most notably Saudi Arabia, yet oil lost some momentum overnight last night as prices softened with OPEC cutting its demand forecast for 2021 and this International Energy Agency stating that the market was still oversupplied. (Reuters)
Asia Pacific gasoline demand is expected to recover to 2019 levels by the end of the first quarter, following the region’s return to pre-COVID gasoil consumption levels in late 2020, said Max van der Velden, principal analyst at Wood Mackenzie. Asia’s gasoline demand is expected to increase by 400,000 bpd in February from January, Kwa added, noting that the expansion over the same period in 2019 was closer to 600,000 bpd. Higher diesel demand in Europe may also soak up excess Asian supplies, Kwa added. (Reuters)
We wish everyone a Happy and Prosperous New Year!
MARKETS NEWS:
* Shell to Freeze Salaries for Majority of Staff Amid Overhaul
* New York Driving Comeback Falters With Virus Surge, Cold Blast
* Main North Sea Oil Loadings to Rise to 2.04M B/D in March
* DOE Seeks to Sell 10.1M Bbl of Crude From Strategic Reserve
* North Sea DUC Crude Loadings Set at One Cargo in March
* Russia Orders Oil Cos. to Sell More Fuel at Commodity Exchange
* Brazil’s Gasoline Prices Could Be Further Raised: Bolsonaro
OTHER NEWS:
* Marathon Oil Says It’s Cutting 100 Jobs to ‘Optimize’ Costs
* U.S. Oil Majors Downgraded by S&P on Climate Risk, Earnings
OIL PRODUCT NEWS:
* U.S.: Cold Snap Is Giving the Oil Rebound a Boost
* EUROPE: VLCC Signals Southwold; Miro Maintenance
* ASIA: Gasoil Margins Seen Below $10; Strong Propane
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
* EARNINGS: Enbridge Inc.
* HOLIDAYS: China, Hong Kong, South Korea, Singapore, Indonesia
ANALYST VIEWS/COLUMNS:
* Gasoil Stockpiles Rise in Europe’s ARA Region: Insights Global
*Rotterdam 3.5% INDIC*
Mar21 338.50 / 340.50
Apr21 337.75 / 339.75
May21 335.50 / 337.50
Jun21 332.00 / 334.00
Jul21 328.00 / 330.00
Aug21 323.50 / 325.50
Q2-21 335.25 / 337.25
Q3-21 323.50 / 325.50
Q4-21 308.50 / 310.50
Q1-22 299.25 / 302.25
CAL22 290.75 / 296.75
*Singapore 380 INDIC*
Mar21 353.75 / 355.75
Apr21 352.50 / 354.50
May21 350.25 / 352.25
Jun21 347.25 / 349.25
Jul21 344.00 / 346.00
Aug21 340.50 / 342.50
Q2-21 350.00 / 352.00
Q3-21 340.50 / 342.50
Q4-21 329.00 / 331.00
Q1-22 320.00 / 323.00
CAL22 310.25 / 316.25
*Rott VLSFO 0.5% INDIC*
Mar21 442.50 / 447.50
Apr21 438.75 / 443.75
May21 435.50 / 440.50
Jun21 432.50 / 437.50
Jul21 429.75 / 434.75
Aug21 427.25 / 432.25
Q2-21 435.50 / 440.50
Q3-21 427.25 / 432.25
Q4-21 419.25 / 425.25
Q1-22 413.50 / 421.50
CAL22 406.75 / 414.75
*Singapore VLSFO 0.5% INDIC*
Mar21 466.50 / 471.50
Apr21 462.25 / 467.25
May21 459.50 / 464.50
Jun21 457.00 / 462.00
Jul21 454.50 / 459.50
Aug21 452.00 / 457.00
Q2-21 459.50 / 464.50
Q3-21 452.00 / 457.00
Q4-21 444.00 / 450.00
Q1-22 437.50 / 445.50
CAL22 429.25 / 437.25
*Sing 10ppm GO INDIC*
Mar21 66.81 / 66.95
Apr21 66.62 / 66.82
May21 66.45 / 66.65
Jun21 66.30 / 66.50
Jul21 66.15 / 66.35
Aug21 66.03 / 66.23
Q2-21 66.40 / 66.70
Q3-21 65.98 / 66.28
Q4-21 65.53 / 65.83
Q1-22 65.01 / 65.31
CAL22 64.60 / 65.00
*ICE Gasoil 10ppm INDIC*
Mar21 496.83 / 498.83
Apr21 497.00 / 499.00
May21 497.00 / 499.00
Jun21 497.00 / 499.00
Jul21 497.00 / 499.00
Aug21 497.24 / 499.24
Q2-21 497.00 / 499.00
Q3-21 497.03 / 499.03
Q4-21 494.33 / 496.33
Q1-22 496.48 / 498.48
CAL22 495.12 / 497.12
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