At 10:30 am Singapore time (0230 GMT), the ICE September Brent futures contract was down 11 cents/b (0.15%) from the previous close at $75.44/b while the NYMEX August light sweet crude contract was down 8 cents/b (0.11%) at $74.48/b.
After failing to ratify production increases from the rest of the year, the OPEC group cancelled its 5th July meeting to the bewilderment of the oil market which saw no further clarity on production quotas for 2021. The UAE and Saudi were unable to agree on baseline quotas for production which meant that a unanimous decision was not possible leading to questions as to the future of the group, with some pointing to the possible break up.
This week marks an eventful week in terms of news and information, with the IEA set to release its view of the market on Tuesday, followed by the monthly report from OPEC due on Thursday.
The latest positioning data shows that speculators reduced their net long in ICE Brent by 4,796 lots over the last reporting week to leave them with a net long of 303,605 lots as of last Tuesday. NYMEX WTI saw significantly more liquidations over the week, with speculators reducing their net long by 33,386 lots, leaving them with a net long of 373,870 lots. The bulk of this reduction was driven by longs liquidating, rather than fresh shorts. It would appear, given the uncertainty over OPEC+, that speculators have decided to take some risk off the table.
OIL MARKET ROUND-UP:
* Shale’s Prudence Seen in Permian as Rigs Level Off
* Saudi Arabia Eases Subsidy Cuts With Gasoline Price Ceiling
* 7pm: EIA releases monthly Drilling Productivity Report
* OIL WEEKLY AGENDA: IEA, OPEC Market Reports; U.S. Shale Drilling
Rotterdam 3.5% INDIC
Aug21 394.50 / 396.50
Sep21 394.00 / 396.00
Oct21 390.50 / 392.50
Nov21 387.25 / 389.25
Dec21 384.25 / 386.25
Jan22 381.75 / 383.75
Q4-21 387.25 / 389.25
Q1-22 379.50 / 381.50
Q2-22 372.75 / 374.75
Q3-22 364.50 / 367.50
CAL22 368.50 / 371.50
Singapore 380 INDIC
Aug21 407.00 / 409.00
Sep21 404.75 / 406.75
Oct21 402.25 / 404.25
Nov21 399.75 / 401.75
Dec21 397.50 / 399.50
Jan22 395.00 / 397.00
Q4-21 399.75 / 401.75
Q1-22 392.75 / 394.75
Q2-22 386.75 / 388.75
Q3-22 379.25 / 382.25
CAL22 386.75 / 389.75
Rott VLSFO 0.5% INDIC
Aug21 513.50 / 518.50
Sep21 510.75 / 515.75
Oct21 508.25 / 513.25
Nov21 505.75 / 510.75
Dec21 503.00 / 508.00
Jan22 500.25 / 505.25
Q4-21 505.50 / 510.50
Q1-22 497.50 / 502.50
Q2-22 489.25 / 495.25
Q3-22 481.25 / 487.25
CAL22 485.25 / 491.25
Singapore VLSFO 0.5% INDIC
Aug21 533.00 / 538.00
Sep21 530.75 / 535.75
Oct21 528.50 / 533.50
Nov21 526.25 / 531.25
Dec21 524.00 / 529.00
Jan22 521.50 / 526.50
Q4-21 526.25 / 531.25
Q1-22 519.00 / 524.00
Q2-22 510.50 / 516.50
Q3-22 502.50 / 508.50
CAL22 506.50 / 512.50
Sing 10ppm GO INDIC
Aug21 80.58 / 80.72
Sep21 80.42 / 80.62
Oct21 80.17 / 80.37
Nov21 79.79 / 79.99
Dec21 79.40 / 79.60
Jan22 79.04 / 79.24
Q4-21 79.80 / 80.00
Q1-22 78.70 / 78.90
Q2-22 77.80 / 78.00
Q3-22 77.15 / 77.35
CAL22 77.41 / 77.81
Ice Gasoil Swap
Aug21 606.13 / 608.13
Sep21 606.72 / 608.72
Oct21 605.26 / 607.26
Nov21 602.35 / 604.35
Dec21 599.59 / 601.59
Jan22 597.71 / 599.71
Q4-21 602.40 / 604.40
Q1-22 596.13 / 598.13
Q2-22 589.20 / 591.20
Q3-22 589.50 / 591.50
CAL22 589.11 / 592.11
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