At 10.50 am Singapore time (0250 GMT), the ICE August Brent futures contract was down 57 cents/b (0.79%) from the previous settle at $72/b, while the NYMEX July light sweet crude contract was down 51 cents/b (0.73%) at $69.83/b. The ICE Brent contract settled at $72.52/b on June 10, the highest in over a year after the front month contract settled at $72.62/b on May 16, 2019. Additionally, the NYMEX light sweet crude contract settled at $70.20/b on June 10, and was last higher at $71.92/b on October 16, 2018, S&P Global Platts data showed.
Well last night news didn’t shock the market for long, I was surprised we saw such an aggressive initial reaction, we all knew it was coming, the market soon calmed down and we are back safely above 72 again.
As oil demand roars back from the pandemic shock, the world may soon clamour for more crude from OPEC+. But the coalition doesn’t have all the barrels it’s advertising. On paper, the alliance will still have a gigantic 5.8 million barrels of daily production off-line — almost 6% of global supply — when it gathers next month to discuss whether to revive more output.
Today the market awaits the IEA monthly report for June after receiving OPEC+’s month report yesterday. OPEC forecasts for the growth of global oil demand in 2021 unchanged at 6 mb/d & expected to reach 96.58 mb/d. This average is lower than the average global oil demand in 2019 by about 3.39 mb/d. Downward revisions in OECD cancelled upward revisions in non-OECD.
INDEX: (MTD Estimates)
* Sing 380: 393.53
* Rott 3.5%: 381.94
* Sing 0.5%: 514.42
* Rott 0.5%: 494.84
OIL MARKET ROUND-UP:
* U.S., U.K. Roads Roar Like the Pre-Pandemic Days: Demand Monitor
* Europe’s Flights Up by Almost a Fifth in Two Weeks: Eurocontrol
* Benchmark Oil Tanker Losses Stretch to the Deepest Since March
* Monthly ICE Gasoil Deliveries Lowest in More Than a Decade
* OPEC Sees Oil Demand Recovery Gaining Strength in Second Half
Rotterdam 3.5% INDIC
Jul21 386.00 / 388.00
Aug21 384.75 / 386.75
Sep21 382.25 / 384.25
Oct21 379.50 / 381.50
Nov21 377.00 / 379.00
Dec21 374.75 / 376.75
Q3-21 384.25 / 386.25
Q4-21 377.00 / 379.00
Q1-22 371.25 / 373.25
Q2-22 364.75 / 367.75
CAL22 359.75 / 362.75
Singapore 380 INDIC
Jul21 396.25 / 398.25
Aug21 396.50 / 398.50
Sep21 395.75 / 397.75
Oct21 394.25 / 396.25
Nov21 393.00 / 395.00
Dec21 392.00 / 394.00
Q3-21 396.25 / 398.25
Q4-21 393.00 / 395.00
Q1-22 388.50 / 390.50
Q2-22 382.00 / 385.00
CAL22 377.00 / 380.00
Rott VLSFO 0.5% INDIC
Jul21 497.50 / 502.50
Aug21 497.00 / 502.00
Sep21 496.50 / 501.50
Oct21 495.75 / 500.75
Nov21 494.50 / 499.50
Dec21 493.25 / 498.25
Q3-21 497.00 / 502.00
Q4-21 494.50 / 499.50
Q1-22 490.00 / 496.00
Q2-22 485.25 / 491.25
CAL22 482.00 / 488.00
Singapore VLSFO 0.5% INDIC
Jul21 515.75 / 520.75
Aug21 516.00 / 521.00
Sep21 515.75 / 520.75
Oct21 513.25 / 518.25
Nov21 512.25 / 517.25
Dec21 511.25 / 516.25
Q3-21 516.00 / 521.00
Q4-21 512.25 / 517.25
Q1-22 509.00 / 515.00
Q2-22 504.25 / 510.25
CAL22 501.00 / 507.00
Sing 10ppm GO INDIC
Jul21 78.70 / 78.84
Aug21 78.55 / 78.75
Sep21 78.38 / 78.58
Oct21 78.21 / 78.41
Nov21 77.92 / 78.12
Dec21 77.62 / 77.82
Q3-21 78.55 / 78.75
Q4-21 77.65 / 77.85
Q1-22 77.25 / 77.45
Q2-22 76.67 / 76.87
CAL22 76.34 / 76.74
Ice Gasoil Swap
Jul21 591.10 / 593.10
Aug21 591.77 / 593.77
Sep21 590.64 / 592.64
Oct21 587.75 / 589.75
Nov21 585.75 / 587.75
Dec21 584.57 / 586.57
Q3-21 591.15 / 593.15
Q4-21 586.02 / 588.02
Q1-22 581.88 / 583.88
Q2-22 576.37 / 578.37
CAL22 575.76 / 578.76
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