Brent crude futures for May rose 83 cents, or 1.2%, to $67.57 a barrel at 0609 GMT, and was on track for a 2% gain in the week. The European benchmark pushed throughout the morning to reach $68.00 by 0700GMT. U.S. West Texas Intermediate (WTI) crude futures were up 77 cents, or 1.2%, to $64.60 per barrel.
Both contracts surged by over 4% yesterday as the long-awaited OPEC meeting took place that was used to decide output quotas for the month of April. There was lots of sensitivity in the market in the lead up to the meeting that started later than scheduled, with the market reacting to headlines rather than confirmed news, but it quickly became clear that the consensus was to rollover output cuts to April, with only Russia the key player keen to begin to increase supplies. Saudi Arabia also confirmed that it would keep the current levels of production the same, with a phased reintroduction of its 1 million barrel per day of voluntary cuts.
OPEC are well aware of the situation that is currently arising that oil prices are soaring yet end users of the physical crude such as refiners are yet to catch up as lockdown restrictions still weigh on the globally economy. With those participants in the oil consuming nations being hit on the increasing prices of Crude. Goldman Sachs raised its Brent price forecast by $5 to $75 per barrel in the second quarter and $80 per barrel in the third quarter of this year, while UBS raised its forecast for Brent to $75 per barrel and for WTI to $72 per barrel in the second half of 2021. (Reuters)
Quote of the day from yesterday’s meeting as the live stream was cut for public viewing whilst the cuts were discussed and debated: “Transparancy sometimes need lack of transparancy to be fully transparant” (Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al-Saud)
INDEX: (MTD Estimates)
* Sing 380: 368.84
* Rott 3.5%: 361.44
* Sing 0.5%: 488.25
* Rott 0.5%: 472.38
OIL MARKET ROUND-UP:
* OPEC+ Squeezes Oil Production Tight to Protect Price Recovery
* Oil Sands Give OPEC a Boost With Half-Million-Barrel Output Cut
* Russia Needs April Oil Output Hike on Higher Demand: Novak
* China Oil Demand Growth Accelerates Amid Swift Factory Rebound
* Virus Surge Chokes Fuel Use in Top U.S. Buyers Mexico and Brazil
* China to Boost Oil Reserves, Enhance Mine Reserve Security
OTHER NEWS:
* Energy Hedge Fund Deep Basin Returning Capital After Retail Rout
* Smuggled Iran Oil May Have Polluted Israeli Coast, Analyst Says
OIL PRODUCT NEWS:
* U.S.: Colonial Interruptions, Diverted Fuel Ship
* EUROPE: Mercuria Trader Resigns; Pernis Hydrogen
* ASIA: Diesel Glut Seen Worsening; Stockpiles Rise
ECONOMIC DATA/EVENTS: (Times are London.)
* 7:30am: Shanghai exchange weekly commodities inventory
* 2:30pm: U.S. Census crude export data
* 6pm: Baker Hughes weekly rig count
* 6:30pm: ICE Brent weekly commitment of traders
* 8:30pm: CFTC weekly commitment of traders data
*Rotterdam 3.5% INDIC*
Apr21 376.00 / 378.00
May21 372.25 / 374.25
Jun21 367.50 / 369.50
Jul21 362.25 / 364.25
Aug21 357.00 / 359.00
Sep21 351.50 / 353.50
Q2-21 371.75 / 373.75
Q3-21 356.75 / 358.75
Q4-21 340.75 / 342.75
Q1-22 331.75 / 334.75
CAL22 320.00 / 326.00
*Singapore 380 INDIC*
Apr21 386.25 / 388.25
May21 383.75 / 385.75
Jun21 380.50 / 382.50
Jul21 376.75 / 378.75
Aug21 372.75 / 374.75
Sep21 368.50 / 370.50
Q2-21 383.50 / 385.50
Q3-21 372.75 / 374.75
Q4-21 359.50 / 361.50
Q1-22 351.00 / 354.00
CAL22 339.25 / 345.25
*Rott VLSFO 0.5% INDIC*
Apr21 484.25 / 489.25
May21 481.75 / 486.75
Jun21 479.25 / 484.25
Jul21 476.75 / 481.75
Aug21 474.25 / 479.25
Sep21 471.75 / 476.75
Q2-21 481.75 / 486.75
Q3-21 474.25 / 479.25
Q4-21 466.25 / 472.25
Q1-22 459.50 / 467.50
CAL22 452.00 / 460.00
*Sing VLSFO 0.5% INDIC*
Apr21 506.25 / 511.25
May21 504.00 / 509.00
Jun21 501.75 / 506.75
Jul21 499.25 / 504.25
Aug21 497.00 / 502.00
Sep21 494.75 / 499.75
Q2-21 504.00 / 509.00
Q3-21 497.00 / 502.00
Q4-21 489.75 / 495.75
Q1-22 482.50 / 490.50
CAL22 473.25 / 481.25
*Sing 10ppm GO INDIC*
Apr21 72.52 / 72.66
May21 72.44 / 72.64
Jun21 72.36 / 72.56
Jul21 72.22 / 72.42
Aug21 72.09 / 72.29
Sep21 71.94 / 72.14
Q2-21 72.40 / 72.70
Q3-21 72.03 / 72.33
Q4-21 71.46 / 71.76
Q1-22 70.78 / 71.08
CAL22 70.06 / 70.46
*ICE Gasoil 10ppm INDIC*
Apr21 542.02 / 546.02
May21 542.54 / 546.54
Jun21 542.28 / 546.28
Jul21 541.78 / 545.78
Aug21 541.39 / 545.39
Sep21 540.99 / 544.99
Q2-21 542.30 / 546.30
Q3-21 541.39 / 545.39
Q4-21 537.63 / 541.63
Q1-22 530.22 / 534.22
CAL22 527.16 / 531.16
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