Brent crude was up $1.09, or 1.8%, at $63.52 a barrel at 0428 GMT, after climbing to a session high of $63.76, the highest since Jan. 22, 2020. U.S. West Texas Intermediate (WTI) crude futures gained $1.28, or 2.2%, to $60.75 a barrel. It touched the highest since Jan. 8 last year of $60.95 earlier in the session. Oil prices gained around 5% last week.
The market saw a quiet end to the week last week as many welcomed in the New Year, and as such market activity fell to the point we were without a trade on Fuel for an hour at points! Brent however saw a late push to unchartered territories on Friday afternoon after hitting highs of $62+ per barrel – levels not seen in over a year- after trading lower than Thursday levels for most of the day. The vaccines continue to be a main driver for the increasing optimism surrounding the recovers from the pandemic, with the OPEC+ cuts coming from Saudi supporting current prices, with the group coming to a critical point in balancing supply with demand as suppliers will look to take advantage of increasing prices.
Intraday traders on the 1 – hour technical are now sitting on the USD 62.60 resistance level, upside moves that hold above here have near-term resistance at USD 63.78. For the slightly longer-term trader we are now targeting the USD 65.48 resistance. Either way the rhetoric on the wire remains bullish and the pullback looks to have been a wave 4 Elliott ( a shallow one), meaning we are currently on a bullish wave 5 of this phase. (FIS)
The key point to look at over the past month has been the increasing Hi5 levels across the Rotterdam and Singapore contracts, which on the 9th Feb hit the highest levels on both differentials on over a year at 111.75 and 128.22 respectively.
The looming stimulus package is keeping market participants bullish that the package will give a much-needed lift to the economy which will in turn push demand for fuel as we exit the pandemic and look to the future. US drillers have added rigs for the 12th consecutive week in a row as oil prices keep rising, with this figure being the longest consecutive stretch of additions since June 2017, yet the current levels are still 50% below April 2020. (Reuters)
The FOB Rotterdam 0.5%S fuel oil barge crack was assessed at $9.87/b on Feb.11, down from $9.99/b on Feb. 8. Meanwhile, demand for 3.5%S fuel oil remained muted. “Bunker demand is stable. Saudi [Arabia] has yet to increase demand,” a source said, adding: ”There is lower demand from US for cracking.” (S&P Global Platts)
MARKETS NEWS:
* Oil Markets Are Now Balanced, Says Russian Deputy Premier Novak
* OPEC+ Cuts And Covid Has India Eying Spot to Feed Lighter Diet
* American Oil Demand Is Emerging After Months of Covid Paralysis
* WTI Crude Oil Breaches $60 for First Time Since 2018: Chart
OTHER NEWS:
* Commodity Titans to Weigh In on Supercycle Talk as Prices Rally
* Bill Gates Shows How Hard It Can Be to Divest From Fossil Fuel
* Winter’s Fury Unleashes Freeze Over U.S., With More to Come
* Court Order Keeps Work on Ice at ConocoPhillips’ Arctic Project
OIL PRODUCT WRAPS:
* U.S.: Airport Traffic Over 1 Million; Delek FCC
* EUROPE: ARA VLCC Loading Diesel; Tupras Maintenance
ECONOMIC DATA/EVENTS: (Times are London)
* Russian Urals crude 5-day program for March
* HOLIDAYS: Chinese New Year, U.S. President’s Day and Carnival in much of South America
*Rotterdam 3.5% INDIC*
Mar21 353.00 / 355.00
Apr21 352.00 / 354.00
May21 349.50 / 351.50
Jun21 345.75 / 347.75
Jul21 341.75 / 343.75
Aug21 336.75 / 338.75
Q2-21 349.00 / 351.00
Q3-21 336.75 / 338.75
Q4-21 321.50 / 323.50
Q1-22 312.50 / 315.50
CAL22 299.50 / 305.50
*Singapore 380 INDIC*
Mar21 367.75 / 369.75
Apr21 366.25 / 368.25
May21 364.00 / 366.00
Jun21 361.00 / 363.00
Jul21 357.75 / 359.75
Aug21 354.25 / 356.25
Q2-21 363.75 / 365.75
Q3-21 354.00 / 356.00
Q4-21 342.50 / 344.50
Q1-22 333.50 / 336.50
CAL22 320.00 / 326.00
*Rott VLSFO 0.5% INDIC*
Mar21 461.25 / 466.25
Apr21 458.50 / 463.50
May21 455.75 / 460.75
Jun21 453.00 / 458.00
Jul21 450.25 / 455.25
Aug21 447.50 / 452.50
Q2-21 455.75 / 460.75
Q3-21 447.75 / 452.75
Q4-21 439.75 / 445.75
Q1-22 433.75 / 441.75
CAL22 415.50 / 423.50
*Singapore VLSFO 0.5% INDIC*
Mar21 487.75 / 492.75
Apr21 483.50 / 488.50
May21 480.75 / 485.75
Jun21 478.00 / 483.00
Jul21 475.50 / 480.50
Aug21 473.00 / 478.00
Q2-21 480.75 / 485.75
Q3-21 473.00 / 478.00
Q4-21 465.00 / 471.00
Q1-22 458.75 / 466.75
CAL22 439.00 / 447.00
*Sing 10ppm GO INDIC*
Mar21 69.24 / 69.38
Apr21 69.01 / 69.21
May21 68.82 / 69.02
Jun21 68.62 / 68.82
Jul21 68.44 / 68.64
Aug21 68.27 / 68.47
Q2-21 68.75 / 69.05
Q3-21 68.23 / 68.53
Q4-21 67.77 / 68.07
Q1-22 67.25 / 67.55
CAL22 66.84 / 67.24
*ICE Gasoil 10ppm INDIC*
Mar21 515.08 / 517.08
Apr21 515.46 / 517.46
May21 515.23 / 517.23
Jun21 514.71 / 516.71
Jul21 514.16 / 516.16
Aug21 513.66 / 515.66
Q2-21 515.15 / 517.15
Q3-21 513.77 / 515.77
Q4-21 510.89 / 512.89
Q1-22 502.09 / 504.09
CAL22 496.94 / 498.94
For more information please contact
FIS Oil Desk
info@freightinvestor.com
UK number: +44 (0) 207 090 1134
Shanghai number: +86 (0)21 63012568
Singapore: +65 87984987
Luke Longhurst
Email: LukeL@freightinvestor.com
Mobile: (+44) 7966 968761
Ricky Forman
Email: RickyF@freightinvestor.com
Mobile: (+44) 7868 708719
Chris Hudson
Email: ChrisH@freightinvestor.com
Mobile: (+44) 7951 556947
Jessie Deng
Email: jessied@freightinvestor.com
Mobile: (+86)1352 4516743
Jarryd Smith
Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987