Brent crude futures for May dropped by 68 cents, or 1.1% to $63.94 at 0149 GMT, erasing a 9 cent gain in the previous session. U.S. West Texas Intermediate (WTI) crude futures for May delivery fell 62 cents, or 1%, to $60.94 a barrel. The April contract expired on Monday at $61.55, up 13 cents from Friday, after plunging more than 6% last week.
Oil losses can be immediately attributed to the increasing caution surrounding the increases in the coronavirus cases across most of Europe, with the largest oil consumer in the region looking likely to extend a lockdown into April to gain control of the situation that is currently beginning to spiral out of hand. This has led economists to cut growth forecasts as the nation looks to get a hold on its third wave. There is of course also growing concern for other EU countries as the vaccines rollout in many is not going to plan, with early evidence showing that vaccination can greatly reduce the incidences of hospitalisation as a result of COVID-19. (Reuters)
The Paris-based IEA last week cut its forecast for crude demand in 2021 by 2.5 million barrels per day, while the EIA forecast global oil supply would surpass demand in the second half of 2021. Physical crude markets are indicating that demand is lower much more than the futures market. U.S. crude stockpile data from the American Petroleum Institute will be released later Tuesday. Analysts estimate U.S. crude inventories fell by about 900,000 barrels in the week to March 19 while refinery utilisation rose by 3.2 percentage points, according to a Reuters poll. (Reuters)
Saudi Aramco released its financials over the weekend, and it showed the grave effect of lockdowns on the company’s balance sheet, with a slide in earnings by 45% compared to 2019, as demand for oil and products fell drastically. Despite the fall in earnings profits were still at $49 billion, with dividends set to total $75 billion. (BBC News)
OPEC+ compliance with oil production cuts in February rose to 113%, two OPEC+ sources from the producer group told Reuters on Monday. The figure compares with a January compliance figure of 103%. Compliance from members of the Organization of the Petroleum Exporting Countries reached 124%, a figure which includes the additional voluntary cut from Saudi Arabia, said one of the sources. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 388.84
* Rott 3.5%: 371.69
* Sing 0.5%: 497.94
* Rott 0.5%: 478.33
OIL MARKET ROUND-UP:
* Tourism Lull From Thailand to Singapore Is Damping Oil Demand
* Saudis Seek U.S. Help to Thwart Rising Attacks on Oil Sites
* West Texas Crudes Sink to 4-Month Low Amid Weak Export Demand
* Marathon Gets U.S. West Coast’s First Basrah Medium Crude Import
* Benchmark Tanker Losses Ease; Europe-U.S. Gasoline Rates Climb
*Rotterdam 3.5% INDIC*
Apr21 352.50 / 354.50
May21 351.00 / 353.00
Jun21 347.50 / 349.50
Jul21 343.50 / 345.50
Aug21 339.00 / 341.00
Sep21 333.50 / 335.50
Q2-21 350.25 / 352.25
Q3-21 338.50 / 340.50
Q4-21 322.50 / 324.50
Q1-22 314.25 / 317.25
CAL22 309.25 / 315.25
*Singapore 380 INDIC*
Apr21 366.00 / 368.00
May21 364.00 / 366.00
Jun21 361.00 / 363.00
Jul21 357.75 / 359.75
Aug21 354.25 / 356.25
Sep21 350.00 / 352.00
Q2-21 363.50 / 365.50
Q3-21 354.00 / 356.00
Q4-21 341.75 / 343.75
Q1-22 334.25 / 337.25
CAL22 329.75 / 335.75
*Rott VLSFO 0.5% INDIC*
Apr21 447.75 / 452.75
May21 446.75 / 451.75
Jun21 445.75 / 450.75
Jul21 444.75 / 449.75
Aug21 443.75 / 448.75
Sep21 442.50 / 447.50
Q2-21 446.75 / 451.75
Q3-21 443.75 / 448.75
Q4-21 439.50 / 445.50
Q1-22 434.00 / 442.00
CAL22 427.25 / 435.25
*Sing VLSFO 0.5% INDIC*
Apr21 468.00 / 473.00
May21 467.25 / 472.25
Jun21 466.50 / 471.50
Jul21 465.75 / 470.75
Aug21 464.75 / 469.75
Sep21 463.75 / 468.75
Q2-21 467.25 / 472.25
Q3-21 464.75 / 469.75
Q4-21 461.00 / 467.00
Q1-22 456.25 / 464.25
CAL22 450.50 / 458.50
*Sing 10ppm GO INDIC*
Apr21 67.64 / 67.78
May21 67.81 / 68.01
Jun21 67.91 / 68.11
Jul21 68.01 / 68.21
Aug21 68.11 / 68.31
Sep21 68.11 / 68.31
Q2-21 67.70 / 68.00
Q3-21 68.02 / 68.32
Q4-21 67.84 / 68.14
Q1-22 67.50 / 67.80
CAL22 67.27 / 67.67
*ICE Gasoil 10ppm INDIC*
Apr21 507.42 / 511.42
May21 509.71 / 513.71
Jun21 511.25 / 515.25
Jul21 512.43 / 516.43
Aug21 513.26 / 517.26
Sep21 514.14 / 518.14
Q2-21 509.45 / 513.45
Q3-21 513.28 / 517.28
Q4-21 513.51 / 517.51
Q1-22 512.98 / 516.98
CAL22 514.11 / 518.11
For more information please contact
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Luke Longhurst
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