FIS Fuel Oil Morning Report 30/09/21

Brent crude futures fell 7 cents, or 0.1%, to $78.24 a barrel at 0415 GMT, but were still heading for a small rise on the week, marking a fourth straight week of gains. U.S. West Texas Intermediate (WTI) crude futures slipped 6 cents to $74.97 a barrel, though the contract remained on track to post a sixth consecutive week of rises.

 

All eyes are now on a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together known as OPEC+, on Monday, where producers will discuss whether to go beyond their existing deal to boost production by 400,000 barrels per day (bpd) in November and December. Four OPEC+ sources said adding more oil was being looked at as a scenario, without giving details on volumes or dates, against a backdrop of oil hovering near a three-year high and pressure from consumers for more supply. (Reuters)

 

Strength in the gas market continues to be supportive for oil prices. Spot Asian LNG is trading at an oil equivalent of around US$177/bbl and so there is a clear incentive for gas-to-oil switching. As we have mentioned in previous notes, this switching is something that we are already seeing in the power generation sector, particularly in markets such as Pakistan and Bangladesh. This suggests that we should see stronger oil demand in the coming months, which means a tighter than expected oil market through until the end of the year. (ING)

 

Strong South Asian support for HSFO likely to ease. European fuel oil markets continued to find support Sept. 30, as market players turned to low sulphur fuel oil to meet utility demand amid rising gas prices. While LSFO can be used for power generation in Europe, both it and 3.5%S fuel oil can find their way into power generation in Asia. But of all the types of fuel oil, including 0.5%S. LSFO has seen the most marked price increases in the high gas price environment. (S&P Global Platts)

 

 

 

OIL MARKET ROUND-UP:
* Someone Is Betting That Oil Will Soar to a Record $200 a Barrel
* Singapore’s Fuel Oil Inventories At 2-Year Low Amid Power Crunch
* Global Energy Crunch Cascades into U.S. Diesel Market
* Shippers Want a Carbon Tax So Everyone Pays to Go Green
* Saudi Aramco Boosts Propane, Butane Prices to Highest Since 2014

 

 

Rotterdam 3.5% INDIC                                 

Nov21   426.25   /             428.25

Dec21    421.00   /             423.00

Jan22     417.25   /             419.25

Feb22    414.25   /             416.25

Mar22   411.00   /             413.00

Apr22    407.75   /             409.75

Q1-22    414.00   /             416.00

Q2-22    404.50   /             406.50

Q3-22    394.00   /             396.00

Q4-22    382.25   /             385.25

CAL22    398.25   /             401.25

 

Singapore 380 INDIC                                     

Nov21   448.50   /             450.50

Dec21    442.00   /              444.00

Jan22     437.25   /             439.25

Feb22    433.75   /             435.75

Mar22   430.50   /             432.50

Apr22    427.25   /             429.25

Q1-22    434.00   /             436.00

Q2-22    424.00   /             426.00

Q3-22    414.50   /             416.50

Q4-22    405.00   /             408.00

CAL22    419.00   /             422.00

 

Rott VLSFO 0.5% INDIC                                 

Nov21   525.25   /              530.25

Dec21    522.50   /              527.50

Jan22     519.75   /              524.75

Feb22    517.00   /              522.00

Mar22   514.25   /              519.25

Apr22    511.50   /              516.50

Q1-22    517.00   /              522.00

Q2-22    508.50   /              513.50

Q3-22    499.00   /              505.00

Q4-22    490.00   /              496.00

CAL22    503.50   /              509.50

 

Singapore VLSFO 0.5% INDIC                                     

Nov21   546.75   /              551.75

Dec21    544.25   /              549.25

Jan22     541.50   /              546.50

Feb22    538.75   /              543.75

Mar22   536.00   /              541.00

Apr22    533.00   /              538.00

Q1-22    538.75   /              543.75

Q2-22    530.00   /              535.00

Q3-22    520.50   /              526.50

Q4-22    512.00   /              518.00

CAL22    525.25   /              531.25

 

Sing 10ppm GO INDIC                                   

Nov21   87.92     /              88.06

Dec21    87.34     /              87.54

Jan22     86.71     /              86.91

Feb22    86.19     /              86.39

Mar22   85.75     /              85.95

Apr22    85.39     /              85.59

Q1-22    86.20     /              86.40

Q2-22    85.03     /              85.23

Q3-22    83.95     /              84.15

Q4-22    82.79     /              82.99

CAL22    84.40     /              84.80

 

Ice Gasoil Swap                                               

Nov21   666.40   /              668.40

Dec21    662.58   /              664.58

Jan22     658.57   /              660.57

Feb22    653.88   /              656.88

Mar22   649.43   /              652.43

Apr22    644.68   /              647.68

Q1-22    653.80   /              656.80

Q2-22    642.44   /              645.44

Q3-22    634.26   /              637.26

Q4-22    629.28   /              632.28

CAL22    639.94   /              642.94

 

 

 

 

 

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FIS Oil Desk

info@freightinvestor.com
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Email: LukeL@freightinvestor.com

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Email: RickyF@freightinvestor.com

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Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987

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