Brent crude futures were up 49 cents, or 0.7%, at $71.84 a barrel by 0233 GMT, the highest since September 2019. The international benchmark gained 1.6% on Wednesday. U.S. West Texas Intermediate crude futures rose 44 cents, or 0.6%, to $69.27 a barrel. Prices earlier rose to as much as $69.32, the most since October 2018, after gaining 1.5% in the previous session.
Data from the API showed a massive 5.36 million barrels draw in US crude inventories in the week ended May 28. This fuelled the crude price rally in morning Asia trading, even though the API data also showed that US gasoline and distillate inventories rose 2.51 million barrels and 1.59 million barrels, respectively, in the same period. (S&P Global Platts)
The main driver of the recent gain in oil prices looks to be the fact that models from OPEC show that demand is due to outstrip supply in the second half of this year, with demand looking likely to hit 99.8 million barrels today with supply only hitting 97.5 million barrels per day. (Reuters)
The US and Iranian talks surrounding the nuclear deal has slowed which would mean that oil coming into the market may not come online as quickly as initially thought. The talks to revive the 2015 nuclear accord have seems to have hit a stumbling block and as a result the sanctions on Iranian oil looks likely to remain in the short term.
The EU and US continue the path out of lockdown from COVID-19 and as a result demand for oil product has been bright as driving season begins to kick-in, although there remains the caveat that that resurgence of the virus in some Asian countries would potentially put a stop to all the good progress made thus far with the vaccine rollout.
INDEX: (MTD Estimates)
* Sing 380: 390.77
* Rott 3.5%: 378.88
* Sing 0.5%: 510.22
* Rott 0.5%: 492.00
Rotterdam 3.5% INDIC
Jul21 387.75 / 389.75
Aug21 386.00 / 388.00
Sep21 382.50 / 384.50
Oct21 378.75 / 380.75
Nov21 375.00 / 377.00
Dec21 371.75 / 373.75
Q3-21 385.50 / 387.50
Q4-21 375.25 / 377.25
Q1-22 368.75 / 370.75
Q2-22 362.75 / 365.75
CAL22 358.50 / 361.50
Singapore 380 INDIC
Jul21 400.00 / 402.00
Aug21 399.25 / 401.25
Sep21 397.25 / 399.25
Oct21 394.75 / 396.75
Nov21 392.50 / 394.50
Dec21 390.50 / 392.50
Q3-21 399.00 / 401.00
Q4-21 392.75 / 394.75
Q1-22 387.00 / 389.00
Q2-22 381.25 / 384.25
CAL22 377.50 / 380.50
Rott VLSFO 0.5% INDIC
Jul21 498.00 / 503.00
Aug21 497.50 / 502.50
Sep21 497.00 / 502.00
Oct21 496.25 / 501.25
Nov21 495.25 / 500.25
Dec21 494.25 / 499.25
Q3-21 497.50 / 502.50
Q4-21 495.25 / 500.25
Q1-22 491.00 / 497.00
Q2-22 486.00 / 492.00
CAL22 481.75 / 487.75
Singapore VLSFO 0.5% INDIC
Jul21 517.00 / 522.00
Aug21 517.25 / 522.25
Sep21 517.00 / 522.00
Oct21 516.50 / 521.50
Nov21 516.00 / 521.00
Dec21 515.50 / 520.50
Q3-21 517.25 / 522.25
Q4-21 516.00 / 521.00
Q1-22 513.25 / 519.25
Q2-22 508.50 / 514.50
CAL22 504.00 / 510.00
Sing 10ppm GO INDIC
Jul21 77.73 / 77.87
Aug21 77.63 / 77.83
Sep21 77.57 / 77.77
Oct21 77.46 / 77.66
Nov21 77.22 / 77.42
Dec21 76.96 / 77.16
Q3-21 77.65 / 77.85
Q4-21 76.98 / 77.18
Q1-22 76.56 / 76.76
Q2-22 75.91 / 76.11
CAL22 75.60 / 76.00
Ice Gasoil Swap
Jul21 585.85 / 587.85
Aug21 586.89 / 588.89
Sep21 587.76 / 589.76
Oct21 586.67 / 588.67
Nov21 584.09 / 586.09
Dec21 582.15 / 584.15
Q3-21 586.85 / 588.85
Q4-21 584.30 / 586.30
Q1-22 579.69 / 581.69
Q2-22 572.33 / 574.33
CAL22 570.52 / 573.52
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Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987
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