Good morning all,
Brent crude futures were down 74 cents, or 1.8%, at $40.46 a barrel by 0644 GMT, having climbed nearly 2% the previous day. U.S. oil was down 90 cents, or 2.3%, at $38.67, after gaining 2.6% on Tuesday. API figures and data showed a build in Crude stocks of around 4.5 million barrels- well above analysts estimates. This build prompted heavy selling with supply disruption as a result of Hurricane zeta tapering off. (Reuters)
The storm that is brewing on the gulf of Mexico threatens the major production hub in the US Gulf region which accounts for 17% of total crude output in the US. Energy producers have already cuts 16% of production in the area over safety concerns that the hurricane will bring, which equates to 293,656 barrels of oil per day. It is possible that it could reach the northern Gulf coast at or near hurricane strength on Wednesday. (Reuters)
Saudi Aramco have launched ambitious plans to reach output of crude and products of 6 million barrels per day within 3 years. (S&P Global Platts)
Chinese refineries are extending run cuts which mimics the sentiment in October, as both independent and state run refiners cut run rates as refining margins fall. It was the fourth monthly drop since July where the run rate was 83.1%- a six-month high. (S&P Global Platts)
Continuing with China, Jet-fuel demand is back to near pre-COVID levels according to reports from Reuters this morning, as a result of a quick rebound in customer travel and cargo freight, but international travel remained weak as expected. Domestic travel accounts for two thirds of China’s overall aviation fuel demand. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 251.63
* Rott 3.5%: 237.04
* Sing 0.5%: 321.03
* Rott 0.5%: 301.41
MARKETS NEWS:
* Here’s the Latest on the Resurgence of Libya’s Oil Industry
* API Reports U.S. Crude Stockpiles Increased 4.58M Bbl Last Week
* OIL ALLOCATIONS: Adnoc Cuts Dec. Vols by 20% to 4 Buyers in Asia
* U.S. GULF STORM: GoM Producers Shut 49.45% of Oil Output
* U.S. Gulf Shuts in 914,811 B/D or 49.45% Oil Production: BSEE
* Mexican Oil Ports Remain Open During Passage of Zeta
* BHP Shuts Production at 2 Oil Platforms in Advance of Hurricane
* U.S. Gets First Norwegian Johan Sverdrup Crude for East Coast
* Ghana to Cut Jubilee Exports in December; TEN Grade Exports Gain
* Sudan Doubles Price of Gasoline, Diesel, Ministry Says
OIL PRODUCT NEWS:
* U.S.: Chevron Shutting Refinery Ahead of Storm Zeta
* EUROPE: Shell Godorf Work; PCK Schwedt Restarts CDU
* ASIA: Largest Japan Airline to Buy Sustainable Fuel
ECONOMIC EVENTS: (Times are London. )
* 2:30pm: EIA weekly oil inventory report; TOPLive blog coverage begins 2:20pm
* EARNINGS: Pemex, Petrobras, Suncor, Hess, Eni
* China policy plenum in Beijing, day 3
* Genscape weekly ARA crude inventory report
ANALYST COLUMNS:
* Product Demand Still Soft While Storage, Storms Add Uncertainty: Bloomberg Intelligence
* Biden Would Face Roadblocks in Unwinding Iran Sanctions: Height
Singapore 380 INDIC
Nov20 246.25 / 248.25
Dec20 243.50 / 245.50
Jan21 242.50 / 244.50
Feb21 242.75 / 244.75
Mar21 243.00 / 245.00
Apr21 243.25 / 245.25
Q1-21 242.75 / 244.75
Q2-21 243.50 / 245.50
Q3-21 244.50 / 246.50
Q4-21 245.50 / 248.50
CAL21 243.25 / 249.25
Rotterdam 3.5% INDIC
Nov20 234.00 / 236.00
Dec20 230.00 / 232.00
Jan21 228.00 / 230.00
Feb21 228.00 / 230.00
Mar21 228.00 / 230.00
Apr21 228.00 / 230.00
Q1-21 228.00 / 230.00
Q2-21 228.00 / 230.00
Q3-21 228.00 / 230.00
Q4-21 227.25 / 230.25
CAL21 227.00 / 233.00
Singapore VLSFO 0.5% INDIC
Nov20 305.50 / 310.50
Dec20 305.25 / 310.25
Jan21 305.50 / 310.50
Feb21 306.25 / 311.25
Mar21 307.00 / 312.00
Apr21 308.00 / 313.00
Q1-21 306.25 / 311.25
Q2-21 309.25 / 314.25
Q3-21 313.00 / 319.00
Q4-21 317.50 / 323.50
CAL21 311.25 / 317.25
Rott VLSFO 0.5% INDIC
Nov20 287.75 / 292.75
Dec20 286.50 / 291.50
Jan21 286.50 / 291.50
Feb21 287.50 / 292.50
Mar21 288.50 / 293.50
Apr21 289.75 / 294.75
Q1-21 287.50 / 292.50
Q2-21 291.00 / 296.00
Q3-21 294.75 / 300.75
Q4-21 298.75 / 304.75
CAL21 292.75 / 298.75
Sing 10ppm GO INDIC
Nov20 42.81 / 42.95
Dec20 43.33 / 43.53
Jan21 43.80 / 44.00
Feb21 44.24 / 44.44
Mar21 44.69 / 44.89
Apr21 45.19 / 45.39
Q1-21 44.20 / 44.50
Q2-21 45.56 / 45.86
Q3-21 46.83 / 47.13
Q4-21 47.63 / 47.93
CAL21 46.00 / 46.40
ICE Gasoil 10ppm INDIC
Nov20 321.42 / 323.42
Dec20 325.16 / 327.16
Jan21 330.14 / 332.14
Feb21 334.50 / 336.50
Mar21 337.73 / 339.73
Apr21 341.33 / 343.33
Q1-21 334.10 / 336.10
Q2-21 343.91 / 345.91
Q3-21 354.64 / 356.64
Q4-21 365.72 / 367.72
CAL21 349.60 / 351.60
Rott Hi5 Sing Hi5
Nov20 56 61
Dec20 58 64
Jan21 60 65
Feb21 61 65
Mar21 62 66
Apr21 64 67
Q1-21 61 65
Q2-21 65 68
Q3-21 69 71
Q4-21 73 74
CAL21 66 68