At 10:55 am Singapore time (0255 GMT), the ICE Brent June contract fell 6 cents/b (0.09%) from the April 27 settle at $66.36/b, while the June NYMEX light sweet crude contract was down 12 cents/b (0.19%) at $62.82/b.
API
Crude +4.319M
Cushing +0.742M
Gasoline -1.288M
Distillate -2.417M
An uncharacteristically quiet lead up to the now cancelled OPEC+ meeting that was due today saw oil rangebound over the past few trading days as members of the group felt that the current output quotas are sufficient in controlling the supply and demand fundamentals. This was to the surprise of quite a few as the situation in India continues to spread and spiral out of control with the UK sending vital equipment that is in short supply, yesterday. The situation in India, as well as the rising cases in Japan and Brazil will be weighing on the minds of oil market participants as May comes and the start of the relaxing of cuts begin from OPEC+ and Saudi Arabia.
Latest data from the EIA released late last night showed of a 4 million barrel build on crude, but on a more positive note, US stocks of distillates and gasoline fell as the country relaxes lockdown and domestic travel picks up. Despite this surprise build, the market is holding up fairly well in early morning trading today. Looking at refined products, the API reported drawdowns of 1.29MMbbls and 2.42MMbbls in gasoline and distillate fuel oil respectively. The more widely followed EIA report will be released later today.
In fuel, the Fogos on both the Singapore and Rotterdam have weakened rather significantly over the course of the week by over $2.5 from Monday, to open today at -37.75 on the sing and -66 on the Rott. The gasoil EW has also softened off towards the end of the month, with the differential trading at -6.5 on Tuesday.
INDEX: (MTD Estimates)
* Sing 380: 366.76
* Rott 3.5%: 354.10
* Sing 0.5%: 478.99
* Rott 0.5%: 457.26
OIL MARKET ROUND-UP:
* Oil Tanker Leaks Cargo Into Ocean Near China’s Refining Hub
* U.S. Truck Boom Shows Why Oil’s Demand Comeback Is Here to Stay
* API Reports U.S. Crude Stockpiles Rose 4.32M Bbl Last Week
* Italy’s Oil Product Sales Jumped 34% Y/y in March to 3.795M Tons
* Colombia’s Heavy Crude Weakens With Return of OPEC Supply
* 3:30pm: EIA weekly report on U.S. oil inventories, supply and demand
Rotterdam 3.5% INDIC
May21 365.50 / 367.50
Jun21 364.50 / 366.50
Jul21 362.00 / 364.00
Aug21 358.25 / 360.25
Sep21 353.25 / 355.25
Oct21 348.25 / 350.25
Q3-21 357.75 / 359.75
Q4-21 344.25 / 346.25
Q1-22 337.50 / 339.50
Q2-22 332.75 / 335.75
CAL22 328.25 / 331.25
Singapore 380 INDIC
May21 376.50 / 378.50
Jun21 376.00 / 378.00
Jul21 374.50 / 376.50
Aug21 371.75 / 373.75
Sep21 368.25 / 370.25
Oct21 364.75 / 366.75
Q3-21 371.50 / 373.50
Q4-21 362.25 / 364.25
Q1-22 356.50 / 358.50
Q2-22 352.00 / 355.00
CAL22 350.25 / 353.25
Rott VLSFO 0.5% INDIC
May21 464.75 / 469.75
Jun21 464.50 / 469.50
Jul21 464.00 / 469.00
Aug21 463.25 / 468.25
Sep21 462.50 / 467.50
Oct21 461.50 / 466.50
Q3-21 463.25 / 468.25
Q4-21 460.25 / 465.25
Q1-22 456.50 / 462.50
Q2-22 453.50 / 459.50
CAL22 451.75 / 457.75
Singapore VLSFO 0.5% INDIC
May21 486.50 / 491.50
Jun21 485.50 / 490.50
Jul21 485.00 / 490.00
Aug21 484.50 / 489.50
Sep21 483.75 / 488.75
Oct21 483.00 / 488.00
Q3-21 484.25 / 489.25
Q4-21 482.00 / 487.00
Q1-22 478.75 / 484.75
Q2-22 475.75 / 481.75
CAL22 473.75 / 479.75
Sing 10ppm GO INDIC
May21 70.62 / 70.76
Jun21 70.75 / 70.95
Jul21 70.86 / 71.06
Aug21 70.93 / 71.13
Sep21 70.98 / 71.18
Oct21 70.99 / 71.19
Q3-21 70.90 / 71.10
Q4-21 70.83 / 71.03
Q1-22 70.63 / 70.83
Q2-22 70.45 / 70.65
CAL22 70.23 / 70.63
Ice Gasoil Swap
May21 532.13 / 534.13
Jun21 533.71 / 535.71
Jul21 535.10 / 537.10
Aug21 536.35 / 538.35
Sep21 537.55 / 539.55
Oct21 537.57 / 539.57
Q3-21 536.35 / 538.35
Q4-21 536.72 / 538.72
Q1-22 535.75 / 537.75
Q2-22 533.08 / 535.08
CAL22 531.54 / 534.54
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
Sam Twyford
Email: SamT@freightinvestor.com
Mobile: (+44) 7729 118643
Jessie Deng
Email: jessied@freightinvestor.com
Mobile: (+86)1352 4516743
Jarryd Smith
Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987
The information provided in this communication is not intended for retail clients. It is general in nature only and does not constitute advice or an offer to sell, or the solicitation of an offer to purchase any swap or other financial instruments, nor constitute any recommendation on our part. The information has been prepared without considering your investment objectives, financial situation, or knowledge and experience. This material is not a research report and is not intended as such. FIS is not responsible for any trading decisions taken based on this communication. Trading swaps and over-the-counter derivatives, exchange-traded derivatives, and options involve substantial risk and are not suitable for all investors. You are advised to perform an independent investigation to determine whether a transaction is suitable for you. No part of this material may be copied or duplicated in any form by any means or redistributed without our prior written consent. Freight Investor Services Ltd (FIS) is authorised and regulated by the Financial Conduct Authority (FRN: 211452) and is a member of the National Futures Association (“NFA”). Freight Investor Services PTE Ltd (‘FIS PTE’) is a private limited company, incorporated and registered in Singapore with company number 200603922G, and has subsidiary offices in India and Shanghai. Freight Investor Solutions DMCC (‘FIS DMCC’) is a private limited company, incorporated and registered in Dubai with company number DMCC1225. Further information about FIS including the location of its offices can be found on our website at www.freightinvestorservices.com