At 10:55 am Singapore time (0255 GMT), the ICE October Brent futures contract was down $1.08/b (1.43%) from the previous close at $74.33/b, while the NYMEX September light sweet crude contract was 96 cents/b (1.30%) lower at $72.99/b.
The ever present threat of the Coronavirus is still clear to see as many Asian countries continue to combat the spread of the virus, with China imposing further restrictions in some cities as cases continue to climb, particularly concerning as until this point, China has kept at bay the further spread of the virus and as the world’s largest importer of crude, it is yet to be seen the effect of increased cases and the problem this poses to the recovery.
This is echoed in nations such as Taiwan and Australia where lockdowns are coming back to control the spread of the delta variant which is the key threat to demand over the short term. It is evident that in countries where the vaccine rollout is low, the virus has ideal conditions to be able to excel and spread.
On the supply side, today marks the first day of the new president of Iran tenure in office which could see the nuclear talks reignited. The market will be following the story closely to see if the stance is any different from his predecessor and whether Iranian Oil will come back online as soon as some may think.
The latest positioning data for ICE Brent shows that speculators increased their net long by 49,818 lots over the last reporting week, to leave them with a net long of 311,659 lots as of last Tuesday. This increase was predominantly driven by fresh longs and takes the speculative long back to the levels that we saw ahead of the selloff in mid-July.
OIL MARKET ROUND-UP:
* Indian Diesel Sales Hold Below Pre-Virus Levels on Restrictions
* OPEC Delivers Most of Planned Supply Boost as Demand Recovers
* Abu Dhabi Raises Sept. Murban Crude Price to $73.50 a Barrel
* Iraq Exported 2.9M B/D of Crude Oil in July Excl. Kurdistan
* U.S. Oil Rig Count Down 2 to 385, Baker Hughes Says
* America’s Oil Demand Is Roaring Back Faster Than Expected
Sing VLSFO 0.5% INDIC
Sep-21 531.75 / 535.75
Oct-21 529.00 / 533.00
Nov-21 526.50 / 530.50
Dec-21 524.00 / 528.00
Jan-22 521.50 / 525.50
Feb-22 519.00 / 523.00
Q4-21 526.50 / 530.50
Q1-22 519.00 / 523.00
Q2-22 511.50 / 516.50
Q3-22 505.00 / 510.00
CAL22 508.50 / 513.50
Rott VLSFO 0.5% INDIC
Sep-21 512.25 / 516.25
Oct-21 510.00 / 514.00
Nov-21 507.50 / 511.50
Dec-21 505.00 / 509.00
Jan-22 502.50 / 506.50
Feb-22 500.00 / 504.00
Q4-21 507.50 / 511.50
Q1-22 500.00 / 504.00
Q2-22 492.00 / 497.00
Q3-22 485.00 / 490.00
CAL22 488.75 / 493.75
Sing 10ppm GO INDIC
Sep-21 80.36 / 80.48
Oct-21 80.13 / 80.27
Nov-21 79.75 / 79.91
Dec-21 79.36 / 79.54
Jan-22 78.98 / 79.16
Feb-22 78.59 / 78.79
Q4-21 79.76 / 79.94
Q1-22 78.63 / 78.83
Q2-22 77.76 / 78.00
Q3-22 77.26 / 77.56
CAL22 77.50 / 77.80
ICE Gasoil 10ppm INDIC
Sep-21 608.25 / 610.25
Oct-21 607.00 / 609.00
Nov-21 603.25 / 605.25
Dec-21 600.25 / 602.25
Jan-22 598.25 / 600.25
Feb-22 596.25 / 598.25
Q4-21 603.50 / 605.50
Q1-22 596.00 / 598.00
Q2-22 588.75 / 590.75
Q3-22 586.25 / 588.75
CAL22 587.75 / 590.75
Sing 380 cst INDIC
Sep-21 410.25 / 412.25
Oct-21 404.75 / 406.75
Nov-21 401.00 / 403.00
Dec-21 398.25 / 400.25
Jan-22 395.50 / 397.50
Feb-22 393.75 / 395.75
Q4-21 401.00 / 403.50
Q1-22 393.75 / 395.75
Q2-22 388.00 / 390.00
Q3-22 381.25 / 384.25
CAL22 384.25 / 387.25
Rotterdam 3.5% INDIC
Sep-21 395.75 / 397.75
Oct-21 390.50 / 392.50
Nov-21 386.25 / 388.25
Dec-21 382.75 / 384.75
Jan-22 380.00 / 382.00
Feb-22 378.00 / 380.00
Q4-21 386.25 / 388.75
Q1-22 378.00 / 380.00
Q2-22 371.50 / 373.50
Q3-22 364.00 / 367.00
CAL22 367.25 / 370.25
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