At 10:40 am Singapore time (0240 GMT), the ICE November Brent futures contract was down 35 cents/b (0.49%) from the previous close at $71.24/b, while the NYMEX October light sweet crude contract was 43 cents/b (0.63%) lower at $68.16/b.
The OPEC+ alliance in its meeting Sept. 1 agreed to increase crude output by 400,000 b/d scheduled for October, which is also aligned with its current easing policy. “The alliance rubber stamped a previously announced 400,000 b/d increase at its monthly meeting, with very little resistance from any members. The decision was ultimately backed by a series of data which suggest the market remains tight” ANZ said.
Although there is major uncertainty around the COVID-19 pandemic, fundamentals remain positive and although there seemed to be some uncertainty as to the outcome of the OPEC meeting, it was surprisingly flat through the day with brent clawing back loses made into the close. The next OPEC meeting will be taking place on 4th October to assess current production levels and the roadmap out of the pandemic.
Price is holding and demand is recovering, supporting the higher high and a bullish trend. COVID and its many variants will ensure there is no over-speculation and parabolic moves for now. If we go up it is likely to be on lower true range levels, rather than the bonkers volatility that we have been seeing in Iron ore.
EIA week ending 8/27
Crude oil: -7.2M
Gasoline: +1.3M
Distillates: -1.7M
Refiner utilz: 91.3%
Impld mogas demand: 9.57Mbpd
OIL MARKET ROUND-UP:
* As OPEC+ Plans More Oil, Global Exports Plunge: Tanker Tracker
* China’s Private Refiners Grab Barrels as They Prepare to Ramp Up
* Louisiana Grapples With Fuel Shortage After Ida Shut Refineries
* U.S. Gulf Oil Industry Studying Ida’s Damage Days After Storm
* EIA: Crude -7,169k Bbl, Median Est. -2,500k Bbl
* Total U.S. Petroleum Products Demand Hits a Record High: EIA
* U.S. Gulf Coast Crude Oil Imports Fall 33%: EIA
Sing VLSFO 0.5% INDIC
Oct-21 514.75 / 519.75
Nov-21 511.25 / 516.25
Dec-21 508.50 / 513.50
Jan-22 506.25 / 511.25
Feb-22 504.00 / 509.00
Mar-22 501.75 / 506.75
Q4-21 511.50 / 516.50
Q1-22 504.00 / 509.00
Q2-22 497.25 / 502.25
Q3-22 490.50 / 495.50
CAL22 494.00 / 499.00
Rott VLSFO 0.5% INDIC
Oct-21 494.00 / 499.00
Nov-21 491.50 / 496.50
Dec-21 489.25 / 494.25
Jan-22 487.00 / 492.00
Feb-22 484.75 / 489.75
Mar-22 482.50 / 487.50
Q4-21 491.50 / 496.50
Q1-22 484.75 / 489.75
Q2-22 478.00 / 483.00
Q3-22 471.25 / 476.25
CAL22 474.75 / 479.75
Sing 10ppm GO INDIC
Oct-21 78.66 / 78.78
Nov-21 78.25 / 78.39
Dec-21 77.85 / 78.01
Jan-22 77.55 / 77.73
Feb-22 77.30 / 77.48
Mar-22 77.11 / 77.31
Q4-21 78.21 / 78.39
Q1-22 77.28 / 77.48
Q2-22 76.75 / 76.99
Q3-22 76.39 / 76.69
CAL22 76.53 / 76.83
ICE Gasoil 10ppm INDIC
Oct-21 598.25 / 600.25
Nov-21 594.50 / 596.50
Dec-21 591.00 / 593.00
Jan-22 589.00 / 591.00
Feb-22 587.00 / 589.00
Mar-22 584.75 / 586.75
Q4-21 594.50 / 596.50
Q1-22 587.00 / 589.00
Q2-22 581.00 / 583.00
Q3-22 579.50 / 582.00
CAL22 580.50 / 583.50
Sing 380 cst INDIC
Oct-21 399.25 / 401.25
Nov-21 392.00 / 394.00
Dec-21 388.00 / 390.00
Jan-22 385.00 / 387.00
Feb-22 383.25 / 385.25
Mar-22 381.50 / 383.50
Q4-21 393.00 / 395.50
Q1-22 383.25 / 385.25
Q2-22 378.00 / 380.00
Q3-22 372.00 / 375.00
CAL22 374.50 / 377.50
Rotterdam 3.5% INDIC
Oct-21 380.50 / 382.50
Nov-21 375.25 / 377.25
Dec-21 371.25 / 373.25
Jan-22 368.75 / 370.75
Feb-22 367.00 / 369.00
Mar-22 365.25 / 367.25
Q4-21 375.50 / 378.00
Q1-22 367.00 / 369.00
Q2-22 361.75 / 363.75
Q3-22 354.50 / 357.50
CAL22 357.25 / 360.25
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FIS Oil Desk
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Email: LukeL@freightinvestor.com
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Jarryd Smith
Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987
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