Brent crude was up $1.10, or 1.7%, at $66.34 a barrel by 0437 GMT, after earlier hitting a high of $66.79. U.S. crude rose 92 cents, or 1.5%, to $62.62 a barrel, having reached a session high of $63. Both benchmarks have risen more than 2% on Tuesday after climbing nearly 4% in the previous session.
The UK was given some long-awaited positive news regarding the process of coming out of what has felt like an arduous stint in a full lockdown to control the spread of different COVID-19 variants, with the general consensus being that many other countries will follow suit and the global economy will start to pick up. Analysts are seeing this as the perfect antidote to the increasing supply as refineries in the US begin to restore capacity, with the summer pick up in crude able to cope with any potential supply gluts. (Reuters)
Singapore has released plans to boots air travel over the past couple of days, in a bid to facilitate face to face meetings and invigorate the economy, which in turn would see a pickup in demand for Jet Fuel. Yet it seems that international travelers, especially for business travel remain cautious as global vaccines are not fully rolled out at the same rate as in the UK or some Asian economies. (S&P Global Platts)
US shale producers face distruptions in bringing 2 million barrels of Crude per day online as they battle with power outages as the fallout from the deep freeze continues. Although it is thought that 85% of production is back online, there is still factors that are hindering some areas of production, which may take at least two weeks to bring online. (Reuters)
Refined product cracks came under pressure amid the refinery restarts. The front-month ICE New York Harbor RBOB crack versus Brent retreated to around $15.75/b, in from a one-year high of $16.42/b on Feb. 19, while the ICE New York Harbor heating oil crack versus Brent edged down to $12.54/b from $13.13/b on Feb. 19. (S&P Global Platts)
MARKETS NEWS:
* Brent Oil’s Prompt Timespread Climbs to $1/Bbl in Backwardation
* Trafigura Sees ‘Strong’ Oil Market Heading Into Summer
* Socar Trading Head Expects Oil to Hit $80 a Barrel This Year
* Iraq Decides Against Oil-Supply Deal With China’s Zhenhua
* U.S. Imports of European Gasoline Rebound, Diesel Flows Limited
* Oil Search Maintains 2021 Production 25.5 to 28.5 Mmboe
* Iranian Vessel Discharges Fuel at Venezuela El Palito Refinery
OTHER NEWS:
* Reliance to Spinoff Oil-to-Chemicals Unit With $25 Billion Loan
* Former Saudi Oil Minister Ahmed Yamani Has Died, Ekhbariya Says
* Commodity Returns Hit Three-Year High With Oil Leading the Way
* Oil Giant Petrobras Sheds $19 Billion in Value Over Two Days
* Biden’s Interior Nominee Says Fossil Fuels Will Play Major Role
* Blackstone-Backed Shale Producer Vine Energy Files to Go
Public
OIL PRODUCT NEWS:
* EUROPE: ICE Gasoil Bets Rise; BP Hydrocracker Halts
* ASIA: Surge in Flows to Americas; Fuel Smuggling
ECONOMIC DATA/EVENTS: (Times are London)
* International Petroleum Week, or “IP Week” in London, usually an annual meeting of hundreds of oil traders, will be held virtually, with official conference program run by Energy Institute lasting Feb. 23-25
** First day speakers include Total CEO Patrick Pouyanne
* 9:30pm: API weekly report on U.S. oil inventories
* EARNINGS: Western Midstream Partners
ANALYST VIEWS/COLUMNS:
* U.S. Gasoline Demand Won’t Fully Recover This Year or Next: FGE
* China Oil Inventories Rise for Third Week to 1.01b Bbls: Kayrros
* Morgan Stanley Raises 3Q Brent Crude Forecast to $70/Bbl
* OPEC+ to Add Over 1.3M B/D of Supply as Brent at $60-$65: BofA
* Clean Fuels Held at Sea Near Singapore Rise Since Friday: Kpler
Good Morning, seeing abit of strength in the fogo this morning and in turn seeing strength in the VLSFO flat price as well, Brent up again 1.4% from the close.
Rotterdam 3.5% INDIC
Mar21 361.50 / 363.50
Apr21 359.25 / 361.25
May21 356.25 / 358.25
Jun21 352.25 / 354.25
Jul21 348.00 / 350.00
Aug21 343.50 / 345.50
Q2-21 356.00 / 358.00
Q3-21 343.50 / 345.50
Q4-21 329.00 / 331.00
Q1-22 319.25 / 322.25
CAL22 310.50 / 313.50
Singapore 380 INDIC
Mar21 374.00 / 376.00
Apr21 372.25 / 374.25
May21 370.00 / 372.00
Jun21 367.00 / 369.00
Jul21 363.75 / 365.75
Aug21 360.25 / 362.25
Q2-21 369.75 / 371.75
Q3-21 360.25 / 362.25
Q4-21 346.75 / 348.75
Q1-22 340.25 / 343.25
CAL22 330.50 / 333.50
Rott VLSFO 0.5% INDIC
Mar21 475.25 / 480.25
Apr21 472.75 / 477.75
May21 470.25 / 475.25
Jun21 467.75 / 472.75
Jul21 465.25 / 470.25
Aug21 462.75 / 467.75
Q2-21 470.25 / 475.25
Q3-21 462.50 / 467.50
Q4-21 452.00 / 458.00
Q1-22 446.25 / 452.25
CAL22 438.25 / 444.25
Singapore VLSFO 0.5% INDIC
Mar21 500.25 / 505.25
Apr21 497.00 / 502.00
May21 494.25 / 499.25
Jun21 491.75 / 496.75
Jul21 489.25 / 494.25
Aug21 486.75 / 491.75
Q2-21 494.25 / 499.25
Q3-21 486.75 / 491.75
Q4-21 476.00 / 482.00
Q1-22 469.75 / 475.75
CAL22 462.25 / 468.25
Sing 10ppm GO INDIC
Mar21 71.63 / 71.77
Apr21 71.46 / 71.66
May21 71.24 / 71.44
Jun21 71.02 / 71.22
Jul21 70.83 / 71.03
Aug21 70.65 / 70.85
Q2-21 71.25 / 71.45
Q3-21 70.65 / 70.85
Q4-21 69.85 / 70.05
Q1-22 69.30 / 69.50
CAL22 68.68 / 69.08
Ice Gasoil Swap
Mar21 536.18 / 539.18
Apr21 536.05 / 539.05
May21 534.80 / 537.80
Jun21 533.29 / 536.29
Jul21 531.98 / 534.98
Aug21 531.11 / 534.11
Q2-21 534.70 / 537.70
Q3-21 531.24 / 534.24
Q4-21 525.60 / 528.60
Q1-22 513.49 / 516.49
CAL22 511.78 / 514.78
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