Brent crude futures for August settled up 93 cents, or 1.3%, to $70.25 a barrel after hitting $71 earlier in the session – its highest intra-day price since March 8. U.S. West Texas Intermediate crude for July was up $1.40, or 2.1%, to $67.72.
As widely expected OPEC+ confirmed yesterday that they will go ahead with their planned production increase over the next 2 months. This should bring an additional 700Mbbls/d of supply onto the market in June, and a further 840Mbbls/d in July (this includes the return of the additional voluntary cuts made by Saudi Arabia).
Despite this confirmation, ICE Brent managed to settle above US$70/bbl yesterday for the first time since May 2019. The market appears focused on the more constructive outlook for later this year, with OPEC+ of the view that the market will see significant stock drawdowns between September and the end of the year. This was also supported by positive demand and economic outlooks many western countries such as the US, EU and China, with the latter providing huge support for Asia as the rest of the continent grapples with increased COVID-19 cases.
The next OPEC+ meeting is due to take place on the 1st July but the group will meet in partial form at the end of June to reassess affairs of the oil market. EIA and API data are due to be released a day later than the usual days as a result of the public holiday in the US.
INDEX: (MTD Estimates)
* Sing 380: 389.48
* Rott 3.5%: 376.25
* Sing 0.5%: 513.21
* Rott 0.5%: 489.00
OIL MARKET ROUND-UP:
* Iran Nuclear Talks Extended as World Powers Try to Bridge Rifts
* American Travel Spree Proves Market Right to Be Bullish on Oil
* Biden Suspends Trump’s 11th-Hour Oil Leases in Arctic Refuge
* Iraqi Armada Toward U.S.; Saudi Flow Up 500k B/d: Tanker Tracker
* Colombia Had 6.3 Years of Oil Reserves by End-2020: Ministry
* Gasoline Sales Plunge to Lowest in a Year in Virus-Hit India
Rotterdam 3.5% INDIC
Jul21 377.25 / 379.25
Aug21 375.75 / 377.75
Sep21 372.25 / 374.25
Oct21 368.50 / 370.50
Nov21 364.75 / 366.75
Dec21 361.75 / 363.75
Q3-21 375.00 / 377.00
Q4-21 365.00 / 367.00
Q1-22 359.25 / 361.25
Q2-22 354.25 / 357.25
CAL22 350.25 / 353.25
Singapore 380 INDIC
Jul21 389.75 / 391.75
Aug21 389.25 / 391.25
Sep21 387.25 / 389.25
Oct21 384.75 / 386.75
Nov21 382.50 / 384.50
Dec21 380.75 / 382.75
Q3-21 388.75 / 390.75
Q4-21 382.50 / 384.50
Q1-22 378.00 / 380.00
Q2-22 373.75 / 376.75
CAL22 367.50 / 370.50
Rott VLSFO 0.5% INDIC
Jul21 486.75 / 491.75
Aug21 486.25 / 491.25
Sep21 485.75 / 490.75
Oct21 485.25 / 490.25
Nov21 484.50 / 489.50
Dec21 483.50 / 488.50
Q3-21 486.25 / 491.25
Q4-21 484.50 / 489.50
Q1-22 481.00 / 487.00
Q2-22 477.50 / 483.50
CAL22 475.00 / 481.00
Singapore VLSFO 0.5% INDIC
Jul21 506.75 / 511.75
Aug21 507.00 / 512.00
Sep21 507.00 / 512.00
Oct21 507.00 / 512.00
Nov21 506.50 / 511.50
Dec21 506.00 / 511.00
Q3-21 506.75 / 511.75
Q4-21 506.50 / 511.50
Q1-22 504.00 / 510.00
Q2-22 500.50 / 506.50
CAL22 497.75 / 503.75
Sing 10ppm GO INDIC
Jul21 76.26 / 76.40
Aug21 76.19 / 76.39
Sep21 76.14 / 76.34
Oct21 76.02 / 76.22
Nov21 75.78 / 75.98
Dec21 75.53 / 75.73
Q3-21 76.20 / 76.40
Q4-21 75.55 / 75.75
Q1-22 75.16 / 75.36
Q2-22 74.59 / 74.79
CAL22 74.33 / 74.73
Ice Gasoil Swap
Jul21 575.39 / 577.39
Aug21 576.39 / 578.39
Sep21 577.35 / 579.35
Oct21 576.63 / 578.63
Nov21 574.22 / 576.22
Dec21 572.53 / 574.53
Q3-21 576.40 / 578.40
Q4-21 574.46 / 576.46
Q1-22 570.56 / 572.56
Q2-22 564.85 / 566.85
CAL22 564.19 / 567.19
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