Brent crude settled at $73.79 a barrel, up $1.56, or 2.2%, while U.S. West Texas Intermediate (WTI) settled at $71.91 a barrel, rising $1.61, or 2.3%.
Over the past few days, oil has been recovering losses from the 7%+ drop that happened earlier in the week. The downtick in prices during the morning trade comes as the market cools off after a rally that saw the front-month ICE Brent and NYMEX light sweet crude markers rising roughly 8% over July 20-22, paring back losses from a selloff that saw both markers plummet at the beginning of the week on July 19. (S&P Global Platts)
The oil market’s supply and demand dynamics point to a slow grind higher in prices over the next few months, Barclays said on Thursday, as it raised its 2021 oil price forecasts by $3-5 per barrel. (Reuters)
The OPEC+ coalition had, on July 18, reached a deal to increase its production quotas by 400,000 b/d each month starting in August, amounting to a 2 million b/d total increase by the end of the year, with the production rises also expected to continue next year. However, with the supply-side response from US shale producers likely to remain conservative, as highlighted by oil services provider Baker Hughes in its second-quarter earnings call, there are concerns in the market that the OPEC+ output increase may fall short of the amount needed to balance the market. (S&P Global Platts)
The Energy Information Administration report, released late July 21, showed implied downstream oil products demand rising 6.62% on the week to 20.6 million b/d in the week ended July 16. This trend is also seen in Europe, where road activity and air travel are both on the rise. “Europe saw a 6% rise in traffic over the past two weeks, with flights now 2/3 of the number seen in 2019,”. As the rising demand trend defies the surge in COVID-19 infections, there are now concerns that supply may not be able to keep up. (S&P Global Platts)
OIL MARKET ROUND-UP:
* Petronas Sells Basrah Heavy Crude for Aug. at Discount to OSP
* Oil Products Stockpiles in Key Areas Decline 5.5m Bbls w/w: FGE
* Iran Opens New Oil Pipeline, Export Hub Avoiding Hormuz Strait
* ARA Naphtha Stocks Rebound as Rhine Blockage Limits Flows
*Rotterdam 3.5% INDIC*
Aug21 391.75 / 393.75
Sep21 386.75 / 388.75
Oct21 382.00 / 384.00
Nov21 378.00 / 380.00
Dec21 374.75 / 376.75
Jan22 372.00 / 374.00
Q4-21 378.25 / 380.25
Q1-22 370.25 / 372.25
Q2-22 364.50 / 366.50
Q3-22 358.00 / 361.00
CAL22 358.75 / 364.75
*Singapore 380 INDIC*
Aug21 404.25 / 406.25
Sep21 400.50 / 402.50
Oct21 396.00 / 398.00
Nov21 393.00 / 395.00
Dec21 390.25 / 392.25
Jan22 387.50 / 389.50
Q4-21 393.25 / 395.25
Q1-22 385.75 / 387.75
Q2-22 380.25 / 382.25
Q3-22 374.50 / 377.50
CAL22 375.50 / 381.50
*Rott VLSFO 0.5% INDIC*
Aug21 506.00 / 511.00
Sep21 504.25 / 509.25
Oct21 502.25 / 507.25
Nov21 500.00 / 505.00
Dec21 497.75 / 502.75
Jan22 495.50 / 500.50
Q4-21 500.00 / 505.00
Q1-22 493.25 / 498.25
Q2-22 486.00 / 492.00
Q3-22 478.25 / 486.25
CAL22 481.50 / 489.50
*Sing VLSFO 0.5% INDIC*
Aug21 524.25 / 529.25
Sep21 521.75 / 526.75
Oct21 519.50 / 524.50
Nov21 517.25 / 522.25
Dec21 515.00 / 520.00
Jan22 512.75 / 517.75
Q4-21 517.25 / 522.25
Q1-22 510.50 / 515.50
Q2-22 503.25 / 509.25
Q3-22 495.50 / 503.50
CAL22 498.75 / 506.75
*Sing 10ppm GO INDIC*
Aug21 79.35 / 79.49
Sep21 79.20 / 79.40
Oct21 78.98 / 79.18
Nov21 78.61 / 78.81
Dec21 78.24 / 78.44
Jan22 77.91 / 78.11
Q4-21 78.55 / 78.85
Q1-22 77.59 / 77.89
Q2-22 76.88 / 77.18
Q3-22 76.47 / 76.77
CAL22 76.65 / 77.05
*ICE Gasoil 10ppm INDIC*
Aug21 597.44 / 601.44
Sep21 595.88 / 599.88
Oct21 592.23 / 596.23
Nov21 589.50 / 593.50
Dec21 587.64 / 591.64
Jan22 585.81 / 589.81
Q4-21 589.80 / 593.80
Q1-22 584.24 / 588.24
Q2-22 577.06 / 581.06
Q3-22 572.79 / 576.79
CAL22 575.85 / 579.85
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FIS Oil Desk
info@freightinvestor.com
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Luke Longhurst
Email: LukeL@freightinvestor.com
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Email: RickyF@freightinvestor.com
Mobile: (+44) 7868 708719
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Email: SamT@freightinvestor.com
Mobile: (+44) 7729 118643
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Email: jessied@freightinvestor.com
Mobile: (+86)1352 4516743
Jarryd Smith
Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987
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