At 10:26 am Singapore time (0226 GMT), the ICE September Brent futures contract was up 10 cents/b (0.13%) from the previous close at $75.94/b, while the NYMEX August light sweet crude contract was up 8 cents/b (0.11%) at $75.31/b.
Yesterday was spent frantically searching for news from the OPEC+ meeting, only to find that no concrete agreement had been put in place and that talks will continue until a figures is set in stone with regards to production for the end of the year and into 2022.
The market remains in limbo after objections from the UAE soured proceedings at the JMMC meeting, forcing the committee to adjourn without reaching a consensus on a production recommendation for August onwards. During the course of the JMMC, members had reached a tentative agreement to boost production by 400,000 b/d a month from August to December, shrinking the OPEC+’s collective output cut to about 3.76 million b/d from the 5.76 million b/d cut expected in July. (S&P Global Platts)
The delta variant of the coronavirus is proving stubbornly difficult to deal with and, while some economies are roaring ahead thanks to widespread vaccine rollouts, others are still struggling and international travel remains severely restricted. That casts a shadow over robust demand forecasts from the International Energy Agency, banks, analysts and even OPEC itself. Global fuel consumption is outstripping supply by 3 million barrels a day, according to Goldman Sachs Group Inc. And whatever OPEC does, the market will remain “really tight” until the U.S.’s Labor Day holiday, Jeff Currie, Goldman’s head of commodities research, said. (Bloomberg)
OIL MARKET ROUND-UP:
* OPEC+ Panel Recommends Gradual Output Hikes for Rest of Year
* Saudis, Russia in Tentative Deal for Gradual Oil-Output Hike
* What OPEC+ Quotas Would Look Like If 400k B/D a Month Are Added
* Runaway Oil Spreads Flash Warning for U.S. Crude Inventories
* Oil Flows to China Dip; Overall Exports Advance: Tanker Tracker
* Nigeria Pegs 2022 Budget on Oil at $57/Bbl, Output of 1.88M/Day
* Tracked Oil Exports from 29 Regions Show Large Gain in June
* Nigeria Lawmakers Approve Oil Law to Draw Foreign Investment
* Clean Fuel Flows from India to Europe Shoot to 17-Month High
Rotterdam 3.5% INDIC
Aug21 405.75 / 407.75
Sep21 402.25 / 404.25
Oct21 398.75 / 400.75
Nov21 395.25 / 397.25
Dec21 392.00 / 394.00
Jan22 389.50 / 391.50
Q4-21 395.50 / 397.50
Q1-22 387.00 / 389.00
Q2-22 379.00 / 381.00
Q3-22 369.75 / 372.75
CAL22 372.25 / 375.25
Singapore 380 INDIC
Aug21 418.50 / 420.50
Sep21 416.25 / 418.25
Oct21 413.75 / 415.75
Nov21 411.50 / 413.50
Dec21 409.25 / 411.25
Jan22 406.75 / 408.75
Q4-21 411.50 / 413.50
Q1-22 404.25 / 406.25
Q2-22 396.75 / 398.75
Q3-22 388.75 / 391.75
CAL22 390.50 / 393.50
Rott VLSFO 0.5% INDIC
Aug21 517.50 / 522.50
Sep21 515.75 / 520.75
Oct21 514.00 / 519.00
Nov21 512.25 / 517.25
Dec21 510.50 / 515.50
Jan22 508.50 / 513.50
Q4-21 512.25 / 517.25
Q1-22 506.25 / 511.25
Q2-22 498.50 / 504.50
Q3-22 490.50 / 496.50
CAL22 494.25 / 500.25
Singapore VLSFO 0.5% INDIC
Aug21 536.50 / 541.50
Sep21 535.00 / 540.00
Oct21 533.25 / 538.25
Nov21 531.50 / 536.50
Dec21 529.75 / 534.75
Jan22 527.75 / 532.75
Q4-21 531.50 / 536.50
Q1-22 525.75 / 530.75
Q2-22 518.75 / 524.75
Q3-22 512.00 / 518.00
CAL22 515.25 / 521.25
Rott Gasoil 0.1% INDIC
Aug21 596.25 / 598.25
Sep21 595.75 / 597.75
Oct21 594.50 / 596.50
Nov21 592.00 / 594.00
Dec21 590.25 / 592.25
Jan22 589.00 / 591.00
Q4-21 592.25 / 594.25
Q1-22 590.25 / 592.25
Q2-22 586.00 / 588.00
Q3-22 581.00 / 583.00
CAL22 581.00 / 584.00
Ice Gasoil Swap
Aug21 606.29 / 608.29
Sep21 606.88 / 608.88
Oct21 605.64 / 607.64
Nov21 603.17 / 605.17
Dec21 601.02 / 603.02
Jan22 599.67 / 601.67
Q4-21 603.25 / 605.25
Q1-22 598.40 / 600.40
Q2-22 591.81 / 593.81
Q3-22 589.40 / 591.40
CAL22 590.74 / 593.74
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