At 10:09 am Singapore time (0209 GMT), the ICE December Brent futures contract was down $2.08/b (2.46%) from the previous close at $82.50/b, while the NYMEX December light sweet crude contract fell $1.80/b (2.18%) to $80.86/b.
EIA weekly data
Crude stocks +4.268M
Gasoline stocks -1.993M
Distillate stocks -0.432M
Cushing stocks -3.899M
Crude oil futures extended the heavy losses seen overnight in mid-morning trade in Asia Oct. 28, pressured by news that Iran and Western powers were set for broader talks on the Asian country’s nuclear program before end-November, setting the stage for the return of Iranian oil. Iran’s top nuclear negotiator Ali Bagheri Kani wrote on Twitter late Oct. 27 that he had agreed to negotiations with six world powers on the country’s nuclear program by end-November.
This followed talks with his EU counterpart Enrique Mora on the same day. Bagheri Kani added that an exact date would be announced next week. The negotiations could set the stage for a lifting of sanctions, allowing up to 1.3 million b/d of Iranian oil to return to global export markets, according to some analyst estimates. Oil prices settled lower by more than 2% overnight after the news. (S&P Global Platts)
Investors also mentioned data from the US Energy Information Administration late Oct. 27 showing total commercial crude oil stocks climbed by 4.27 million barrels to 430.81 million barrels in the week ended Oct. 22. The build pushed stockpiles to their highest since the week ended Aug. 20, but they still remained relatively tight at around 5.6% behind the five-year average. Gasoline stockpiles, meanwhile, declined 1.99 million barrels to 215.75 million barrels, while distillate stocks declined 430,000 barrels to 124.96 million barrels. Inventories at Cushing fell 3.9 million barrels to 27.33 million barrels. Cushing stockpiles were at the lowest since the week ended Oct. 5, 2018, and stood more than 47% behind the five-year average for this time of year. (S&P Global Platts)
Morgan Stanley said earlier this week that it expected demand for liquefied natural gas to grow by between 25 and 50 percent by 2030. Spot prices for LNG over the next ten years, the bank’s analysts also said, as quoted by Reuters, could be on average 40 percent higher than the last five-year average. The bank raised its long-term price outlook for the commodity to $10 per million British thermal units. (Oilprice.com)
Singapore 380 INDIC
Nov21 441.25 / 443.25
Dec21 442.00 / 444.00
Jan22 442.00 / 444.00
Feb22 441.50 / 443.50
Mar22 440.50 / 442.50
Apr22 439.00 / 441.00
Q1-22 441.25 / 443.25
Q2-22 437.25 / 439.25
Q3-22 431.25 / 433.25
Q4-22 423.75 / 426.75
CAL22 433.00 / 436.00
CAL23 394.50 / 402.50
Rotterdam 3.5% INDIC
Nov21 429.75 / 431.75
Dec21 429.25 / 431.25
Jan22 428.75 / 430.75
Feb22 428.00 / 430.00
Mar22 426.50 / 428.50
Apr22 424.25 / 426.25
Q1-22 427.75 / 429.75
Q2-22 421.50 / 423.50
Q3-22 413.50 / 415.50
Q4-22 402.75 / 405.75
CAL22 416.00 / 419.00
CAL23 373.50 / 381.50
Singapore VLSFO 0.5% INDIC
Nov21 587.00 / 592.00
Dec21 583.25 / 588.25
Jan22 579.25 / 584.25
Feb22 575.25 / 580.25
Mar22 571.25 / 576.25
Apr22 567.25 / 572.25
Q1-22 575.25 / 580.25
Q2-22 563.25 / 568.25
Q3-22 551.50 / 557.50
Q4-22 540.25 / 546.25
CAL22 557.25 / 563.25
CAL23 509.00 / 518.00
Rotterdam VLSFO 0.5% INDIC
Nov21 562.00 / 567.00
Dec21 558.25 / 563.25
Jan22 554.25 / 559.25
Feb22 550.25 / 555.25
Mar22 546.25 / 551.25
Apr22 542.25 / 547.25
Q1-22 550.25 / 555.25
Q2-22 538.50 / 543.50
Q3-22 526.75 / 532.75
Q4-22 515.50 / 521.50
CAL22 532.50 / 538.50
CAL23 487.00 / 496.00
Sing 10ppm GO INDIC
Nov21 94.02 / 94.16
Dec21 93.07 / 93.27
Jan22 92.20 / 92.40
Feb22 91.40 / 91.60
Mar22 90.61 / 90.81
Apr22 89.91 / 90.11
Q1-22 91.40 / 91.60
Q2-22 89.21 / 89.41
Q3-22 87.36 / 87.56
Q4-22 86.02 / 86.22
CAL22 88.40 / 88.80
CAL23 82.15 / 82.55
Ice Gasoil Swap
Nov21 711.71 / 713.71
Dec21 705.74 / 707.74
Jan22 699.20 / 701.20
Feb22 692.53 / 694.53
Mar22 685.43 / 687.43
Apr22 678.55 / 680.55
Q1-22 692.40 / 694.40
Q2-22 674.20 / 676.20
Q3-22 663.75 / 665.75
Q4-22 658.77 / 660.77
CAL22 671.78 / 674.78
CAL23 635.64 / 639.64
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