U.S. West Texas Intermediate (WTI) crude futures climbed 24 cents, or 0.4%, to $55.00 a barrel at 0447 GMT, for a third straight day of gains. The benchmark hit a one-year high of $55.26 on Tuesday. Brent crude futures rose 26 cents, or 0.5%, to $57.72 a barrel, for a fourth day of gains after hitting $58.05 on Tuesday, the highest since January last year.
OPEC are continuing on the path to reduce the supply in the oil market in order to sustain prices amid fears that demand will not return as quick as expected, with international travel still not a possibility to many people, in what is usually an extremely busy time for those in Asia that are planning to celebrate Chinese New Year. The committee is scheduled to meet on Wednesday in order to review the current cuts in oil supply from nations such as Saudi Arabia, but there are not expected to be any changes made.
The American Petroleum Institute reported U.S. crude oil inventories fell by 4.3 million barrels in the week to Jan. 29, compared with analysts’ expectations in a Reuters poll for a build of 446,000 barrels.[API/S] Gasoline stocks fell by 240,000 barrels, defying analysts’ expectations for a build of 1.1 million barrels, while distillate inventories, which include heating oil and jet fuel, fell by 1.6 million barrels, a bigger draw than expected. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 333.27
* Rott 3.5%: 321.75
* Sing 0.5%: 445.75
* Rott 0.5%: 415.63
MARKETS NEWS:
* Asia’s Fragile Aviation Recovery Set Back by Resurgent Virus
* OPEC+ Sees Key Goal of Draining Oil Surplus Achieved by Mid-Year
* Asia Pushes U.S. Supertanker Port’s Oil Shipments to Record
* WTI Crude Widens Spread to Key Average Amid OPEC+ Report: Chart
* API Reports Weekly U.S. Crude Stockpiles Fell 4.261M BBL
* Iraq to Sell Lebanon 500,000 Tons of Fuel Oil for A Year
* Sonangol Sells Pazflor Shipment, Cuts Prices for Two Oil Cargoes
OTHER NEWS:
* Exxon Defends Dividend After First Annual Loss in Decades
* BP Says Its Electric Car Chargers Aren’t Profitable Yet
* Wilks Family Takes Stake in Another Fracking Industry Player
* Myanmar Turmoil May Have an Impact on These Global Companies
* Glencore Appoints Former Anglo CEO Cynthia Carroll to Its Board
* Marathon Focused on Cost Reduction Until Pandemic is Contained
OIL PRODUCT NEWS:
* U.S.: Gasoline Shrugs Off Spate of Refinery Trips
* EUROPE: ICE Gasoil Strengthens; Sarroch Halts CDU
* ASIA: Margins Upside at Risk; Gasoil Backwardation
ECONOMIC DATA: (Times are London.)
* 3:30pm: EIA weekly oil inventory report
* 7pm: EIA releases Annual Energy Outlook 2021
* OPEC+ Joint Ministerial Monitoring Committee (JMMC) meeting to review progress and compliance with agreed output cutbacks
** Targets have already been set for February and March and no changes have been mentioned in recent days
* EARNINGS: Enterprise Products Partners LP
ANALYST VIEWS/COLUMNS:
* Myanmar Coup May See China Deepen Energy Ties: Fitch Solutions
* Inventories to Fall as Output Restrained Amid Subdued Demand
* Brent Could Rise Above Forecast of $60/Bbl for 2H 2021: MS
*Rotterdam 3.5% INDIC*
Mar21 325.75 / 327.75
Apr21 324.00 / 326.00
May21 321.00 / 323.00
Jun21 317.25 / 319.25
Jul21 313.25 / 315.25
Aug21 309.00 / 311.00
Q2-21 320.75 / 322.75
Q3-21 309.00 / 311.00
Q4-21 296.25 / 298.25
Q1-22 288.25 / 291.25
CAL22 279.00 / 285.00
*Singapore 380 INDIC*
Mar21 339.50 / 341.50
Apr21 337.75 / 339.75
May21 335.00 / 337.00
Jun21 332.25 / 334.25
Jul21 329.00 / 331.00
Aug21 325.75 / 327.75
Q2-21 335.00 / 337.00
Q3-21 325.75 / 327.75
Q4-21 316.25 / 318.25
Q1-22 309.25 / 312.25
CAL22 299.75 / 305.75
*Rott VLSFO 0.5% INDIC*
Mar21 419.50 / 424.50
Apr21 417.00 / 422.00
May21 414.50 / 419.50
Jun21 412.25 / 417.25
Jul21 410.00 / 415.00
Aug21 407.75 / 412.75
Q2-21 414.50 / 419.50
Q3-21 407.75 / 412.75
Q4-21 401.50 / 407.50
Q1-22 396.75 / 404.75
CAL22 393.00 / 401.00
*Singapore VLSFO 0.5% INDIC*
Mar21 445.50 / 450.50
Apr21 441.50 / 446.50
May21 438.50 / 443.50
Jun21 436.00 / 441.00
Jul21 433.50 / 438.50
Aug21 431.25 / 436.25
Q2-21 438.50 / 443.50
Q3-21 431.25 / 436.25
Q4-21 425.50 / 431.50
Q1-22 420.50 / 428.50
CAL22 413.75 / 421.75
*Sing 10ppm GO INDIC*
Mar21 63.67 / 63.81
Apr21 63.56 / 63.76
May21 63.48 / 63.68
Jun21 63.39 / 63.59
Jul21 63.33 / 63.53
Aug21 63.27 / 63.47
Q2-21 63.45 / 63.75
Q3-21 63.23 / 63.53
Q4-21 62.80 / 63.10
Q1-22 62.37 / 62.67
CAL22 62.08 / 62.48
*ICE Gasoil 10ppm INDIC*
Mar21 474.65 / 476.65
Apr21 475.03 / 477.03
May21 475.13 / 477.13
Jun21 475.13 / 477.13
Jul21 475.38 / 477.38
Aug21 475.59 / 477.59
Q2-21 475.10 / 477.10
Q3-21 475.59 / 477.59
Q4-21 474.30 / 476.30
Q1-22 471.29 / 473.29
CAL22 469.73 / 471.73
The information provided in this communication is not intended for retail clients. It is general in nature only and does not constitute advice or an offer to sell, or the solicitation of an offer to purchase any swap or other financial instruments, nor constitute any recommendation on our part. The information has been prepared without considering your investment objectives, financial situation, or knowledge and experience. This material is not a research report and is not intended as such. FIS is not responsible for any trading decisions taken based on this communication. Trading swaps and over-the-counter derivatives, exchange-traded derivatives, and options involve substantial risk and are not suitable for all investors. You are advised to perform an independent investigation to determine whether a transaction is suitable for you. No part of this material may be copied or duplicated in any form by any means or redistributed without our prior written consent. Freight Investor Services Ltd (FIS) is authorised and regulated by the Financial Conduct Authority (FRN: 211452) and is a member of the National Futures Association (“NFA”). Freight Investor Services PTE Ltd (‘FIS PTE’) is a private limited company, incorporated and registered in Singapore with company number 200603922G, and has subsidiary offices in India and Shanghai. Freight Investor Solutions DMCC (‘FIS DMCC’) is a private limited company, incorporated and registered in Dubai with company number DMCC1225. Further information about FIS including the location of its offices can be found on our website at www.freightinvestorservices.com
For more information please contact
FIS Oil Desk
info@freightinvestor.com
UK number: +44 (0) 207 090 1134
Shanghai number: +86 (0)21 63012568
Singapore: +65 87984987
Luke Longhurst
Email: LukeL@freightinvestor.com
Mobile: (+44) 7966 968761
Ricky Forman
Email: RickyF@freightinvestor.com
Mobile: (+44) 7868 708719
Chris Hudson
Email: ChrisH@freightinvestor.com
Mobile: (+44) 7951 556947
Jessie Deng
Email: jessied@freightinvestor.com
Mobile: (+86)1352 4516743
Jarryd Smith
Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987