At 11:16 am Singapore time (0316 GMT), the ICE September Brent futures contract was up 25 cents/b (0.32%) from the previous close at $77.41/b, while the NYMEX August light sweet crude contract was up 30 cents/b (4%) at $76.64/b. The ICE Brent marker had settled 1.30% higher July 5 at $77.16/b, the highest on record since Oct. 29, 2018.
News filtering through late yesterday afternoon suggested that the OPEC+ meeting had been postponed to a later date which had not yet been set, with current output levels remaining in place for the time being as members were unable to agree levels of production for the rest of the year.
The main crux of the problem remained between the UAE and Saudi Arabia, with the later wanting to tie in the production quotas for further along the curve than up to April 2022. Since all OPEC+ decisions must be unanimous, UAE’s refusal to sign off on the extension, and by association the production plan, means that the alliance will rely on the fallback agreement, which calls for output quotas to remain flat at July levels. The coalition is withholding 5.8 million b/d of output as of July. (S&P Global Platts)
OPEC+ agreed on record output cuts in 2020 to cope with a COVID 19-induced price crash. The producers have been gradually easing the output restrictions, but a plan on Friday to lift output by about 2 million barrels per day (bpd) from August to December 2021 and to extend the pact on a series of gradual output shifts to the end of 2022 was blocked. (Reuters)
OIL MARKET ROUND-UP:
* OPEC+ Deal Fails, Leaving Oil Market Tighter as Prices Surge
* Crude Oil Rallies as OPEC+ to Retain Current Quotas
* Here’s How UBS to RBC See Outlook for Oil After OPEC+ Talks Fail
* Prompt Dubai Swaps at Widest Backwardation Since January 2020
* Brent Tests 13-Year Timeline as OPEC+ Crisis Fans Price
* Mexico Chooses Pemex to Operate Oil Field Found by Private Firms
* Nigeria to Raise Crude, Condensate Exports to 1.5M B/D in Aug.
* Nigeria Oil Region Forum Rejects New Petroleum Bill
Rotterdam 3.5% INDIC
Aug21 411.00 / 413.00
Sep21 408.00 / 410.00
Oct21 405.00 / 407.00
Nov21 402.00 / 404.00
Dec21 399.00 / 401.00
Jan22 396.50 / 398.50
Q4-21 402.00 / 404.00
Q1-22 394.00 / 396.00
Q2-22 386.00 / 388.00
Q3-22 376.75 / 379.75
CAL22 379.75 / 382.75
Singapore 380 INDIC
Aug21 423.50 / 425.50
Sep21 421.75 / 423.75
Oct21 419.75 / 421.75
Nov21 417.75 / 419.75
Dec21 415.75 / 417.75
Jan22 413.25 / 415.25
Q4-21 417.75 / 419.75
Q1-22 411.00 / 413.00
Q2-22 403.75 / 405.75
Q3-22 395.50 / 398.50
CAL22 398.25 / 401.25
Rott VLSFO 0.5% INDIC
Aug21 526.25 / 531.25
Sep21 524.50 / 529.50
Oct21 522.75 / 527.75
Nov21 520.75 / 525.75
Dec21 518.75 / 523.75
Jan22 516.50 / 521.50
Q4-21 520.75 / 525.75
Q1-22 514.25 / 519.25
Q2-22 506.25 / 512.25
Q3-22 498.00 / 504.00
CAL22 502.00 / 508.00
Singapore VLSFO 0.5% INDIC
Aug21 545.25 / 550.25
Sep21 543.75 / 548.75
Oct21 542.00 / 547.00
Nov21 540.25 / 545.25
Dec21 538.25 / 543.25
Jan22 536.00 / 541.00
Q4-21 540.00 / 545.00
Q1-22 533.25 / 538.25
Q2-22 524.75 / 530.75
Q3-22 516.50 / 522.50
CAL22 520.50 / 526.50
Sing 10ppm GO INDIC
Aug21 82.53 / 82.67
Sep21 82.41 / 82.61
Oct21 82.21 / 82.41
Nov21 81.85 / 82.05
Dec21 81.48 / 81.68
Jan22 81.20 / 81.40
Q4-21 81.85 / 82.05
Q1-22 80.92 / 81.12
Q2-22 80.08 / 80.28
Q3-22 79.45 / 79.65
CAL22 79.71 / 80.11
Ice Gasoil Swap
Aug21 621.14 / 623.14
Sep21 621.53 / 623.53
Oct21 620.09 / 622.09
Nov21 617.21 / 619.21
Dec21 615.01 / 617.01
Jan22 613.18 / 615.18
Q4-21 617.45 / 619.45
Q1-22 611.85 / 613.85
Q2-22 603.17 / 605.17
Q3-22 596.79 / 598.79
CAL22 600.81 / 603.81
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