At 10:49 am Singapore time (0249 GMT), the ICE Brent July contract rose 5 cents/b (0.08%) from the May 19 settle at $66.71/b, while the June NYMEX light sweet crude contract was up 6 cents/b (0.09%) at $63.41/b.
EIA week ending 5/14
Crude oil: +1.3M
Gasoline: -2.0M
Distillates: -2.3M
Refiner utilz: 86.3%
Impld mogas demand: 9.22Mbpd
ICE Brent futures settled at over 3% down on close last night as the US and Iran seem to be close to talks in Vienna with regards to the nuclear deal which some had suggested would come to light yesterday, but it seems as if the market will be left to mull it over the weekend with sources saying that an outcome may be announced early next week.
EIA figures released yesterday were somewhat more positive than what analysts had expected, but they proved to be a lot more bearish than those of the API from Tuesday across the board, with the crude build being larger and the product draws being shallower.
Weather in the US Gulf is beginning to cause concern as meteorologists have predicted that this hurricane season could see above average activity which would put refineries under pressure of closures and put oil rigs at risk of needed to evacuate workers, putting a halt to operations.
Finally, looking to India, and the market is getting a better idea of the impact the latest wave of Covid-19 has had on domestic oil demand. The largest refiner in the country, Indian Oil said that gasoline and diesel sales have fallen by around 15-20% due to the latest wave. As a result, the refiner has reduced operating rates at its plants from an average of a little more than 96% in April to around 84% at the moment. A resurgence in Covid-19 cases across parts of Asia is doing little to support the market in the near term.
In fuel, the HSFO barges crack as well as the front fogos halted their steep decline from the past two days with the crack opening this morning at -11.30 and the front Singapore fogo printing at -72.25 early morning.
INDEX: (MTD Estimates)
* Sing 380: 377.24
* Rott 3.5%: 366.52
* Sing 0.5%: 490.45
* Rott 0.5%: 476.25
OIL MARKET ROUND-UP:
* Oil’s Key Spread Takes a Hit as Iranian Supply May Return
* Oil Market Gets a Boost as Top Asian Refiners Scoop Up Cargoes
* China April Gasoline Output Rose 17.4% Y/y to 11.802m Tons
* China Lifts Iraq Oil Imports While Cutting Supply From Elsewhere
* Gulf Coast Gasoline Builds on Colonial Outage: EIA Takeaways
* Europe’s Covid-Crushed Oil Refiners See Hope as Demand Gains
Rotterdam 3.5% INDIC
Jun21 350.50 / 352.50
Jul21 350.00 / 352.00
Aug21 348.25 / 350.25
Sep21 344.75 / 346.75
Oct21 340.75 / 342.75
Nov21 336.75 / 338.75
Q3-21 347.50 / 349.50
Q4-21 337.00 / 339.00
Q1-22 330.50 / 332.50
Q2-22 325.50 / 328.50
CAL22 323.50 / 326.50
Singapore 380 INDIC
Jun21 358.25 / 360.25
Jul21 359.50 / 361.50
Aug21 359.75 / 361.75
Sep21 358.50 / 360.50
Oct21 355.75 / 357.75
Nov21 353.25 / 355.25
Q3-21 359.25 / 361.25
Q4-21 353.50 / 355.50
Q1-22 348.25 / 350.25
Q2-22 343.25 / 346.25
CAL22 340.75 / 343.75
Rott VLSFO 0.5% INDIC
Jun21 457.50 / 462.50
Jul21 458.00 / 463.00
Aug21 458.75 / 463.75
Sep21 458.75 / 463.75
Oct21 458.50 / 463.50
Nov21 457.75 / 462.75
Q3-21 458.50 / 463.50
Q4-21 457.75 / 462.75
Q1-22 455.00 / 461.00
Q2-22 451.50 / 457.50
CAL22 448.25 / 454.25
Singapore VLSFO 0.5% INDIC
Jun21 472.50 / 477.50
Jul21 474.50 / 479.50
Aug21 476.00 / 481.00
Sep21 477.00 / 482.00
Oct21 477.25 / 482.25
Nov21 477.50 / 482.50
Q3-21 476.00 / 481.00
Q4-21 477.50 / 482.50
Q1-22 475.75 / 481.75
Q2-22 472.50 / 478.50
CAL22 469.50 / 475.50
Sing 10ppm GO INDIC
Jun21 73.36 / 73.50
Jul21 73.16 / 73.36
Aug21 73.01 / 73.21
Sep21 72.90 / 73.10
Oct21 72.75 / 72.95
Nov21 72.52 / 72.72
Q3-21 73.00 / 73.20
Q4-21 72.50 / 72.70
Q1-22 71.91 / 72.11
Q2-22 71.50 / 71.70
CAL22 71.25 / 71.65
Ice Gasoil Swap
Jun21 550.52 / 552.52
Jul21 551.46 / 553.46
Aug21 552.26 / 554.26
Sep21 552.93 / 554.93
Oct21 552.09 / 554.09
Nov21 549.54 / 551.54
Q3-21 552.20 / 554.20
Q4-21 549.89 / 551.89
Q1-22 546.14 / 548.14
Q2-22 540.10 / 542.10
CAL22 538.49 / 541.49
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