At 11:48 am Singapore time (0348 GMT), the ICE September Brent futures contract was down 6 cents/b (0.08%) from the previous close at $74.47/b, while the NYMEX August light sweet crude contract was down 2 cents/b (0.03%) at $73.35/b. The Brent marker and the NYMEX light sweet crude market had plummeted 3.41% and 2.38% overnight to settle at $74.53/b and $73.37/b, respectively.
Brent crude oil fell by over 3% yesterday due to volatility in the market as a result of OPEC and their inability to agree to the next phase of output quotas. UAE want to increase their baseline quotas beyond April 2022 but no agreements have been reached. The market has come to the realisation that at current levels, output is likely to increase from other nations as demand heats up. Goldman Sachs said the failure of the discussions has clouded OPEC’s production policy, although the bank reiterated its expectation that Brent would rise $80 per barrel early next year. (Reuters)
The lack of agreement overproduction for next month likely means that OPEC+ will keep, for now, their production in August flat compared with July. This immediately sent oil prices jumping to the highest in three years, considering that global oil demand is bouncing back and the market was initially expecting at least a 500,000-bpd increase from the alliance in August. (OilPrice.com)
OIL MARKET ROUND-UP:
* OPEC+ Crisis Makes Oil Volatile as Traders Guess What’s Next
* Biden Team Spoke to Saudis, UAE About OPEC Talks, Oil Prices
* OPEC+ Breakdown: What to Watch as the Oil Crisis Evolves
* OPEC+ Fail Not So Bullish for U.S. Traders as Oil Forfeits Gains
* U.S. Fuel Use Seen at Post-Virus High in Run-Up to Holiday
* Colombia Oil Output -5.6% M/M to 703,478 B/D in May: Ministry
* Oil Tanker Rates Remain Pressured as OPEC+ Keeps Supply Curbed
Rotterdam 3.5% INDIC
Aug21 391.25 / 393.25
Sep21 388.25 / 390.25
Oct21 385.25 / 387.25
Nov21 382.25 / 384.25
Dec21 379.25 / 381.25
Jan22 376.75 / 378.75
Q4-21 382.25 / 384.25
Q1-22 374.25 / 376.25
Q2-22 366.25 / 368.25
Q3-22 357.00 / 360.00
CAL22 364.75 / 367.75
Singapore 380 INDIC
Aug21 403.50 / 405.50
Sep21 401.75 / 403.75
Oct21 399.75 / 401.75
Nov21 397.75 / 399.75
Dec21 395.75 / 397.75
Jan22 393.25 / 395.25
Q4-21 397.75 / 399.75
Q1-22 391.00 / 393.00
Q2-22 384.25 / 386.25
Q3-22 376.50 / 379.50
CAL22 383.25 / 386.25
Rott VLSFO 0.5% INDIC
Aug21 509.50 / 514.50
Sep21 507.50 / 512.50
Oct21 505.50 / 510.50
Nov21 503.50 / 508.50
Dec21 501.50 / 506.50
Jan22 499.25 / 504.25
Q4-21 503.50 / 508.50
Q1-22 497.00 / 502.00
Q2-22 489.00 / 495.00
Q3-22 480.75 / 486.75
CAL22 484.75 / 490.75
Singapore VLSFO 0.5% INDIC
Aug21 527.00 / 532.00
Sep21 525.50 / 530.50
Oct21 523.75 / 528.75
Nov21 522.00 / 527.00
Dec21 519.75 / 524.75
Jan22 517.75 / 522.75
Q4-21 522.00 / 527.00
Q1-22 515.25 / 520.25
Q2-22 506.50 / 512.50
Q3-22 498.25 / 504.25
CAL22 502.50 / 508.50
Sing 10ppm GO INDIC
Aug21 79.88 / 80.02
Sep21 79.73 / 79.93
Oct21 79.53 / 79.73
Nov21 79.17 / 79.37
Dec21 78.81 / 79.01
Jan22 78.53 / 78.73
Q4-21 79.15 / 79.35
Q1-22 78.24 / 78.44
Q2-22 77.42 / 77.62
Q3-22 76.83 / 77.03
CAL22 77.08 / 77.48
Ice Gasoil Swap
Aug21 600.97 / 602.97
Sep21 601.49 / 603.49
Oct21 600.01 / 602.01
Nov21 597.25 / 599.25
Dec21 595.14 / 597.14
Jan22 593.48 / 595.48
Q4-21 597.45 / 599.45
Q1-22 592.31 / 594.31
Q2-22 584.68 / 586.68
Q3-22 581.01 / 583.01
CAL22 583.25 / 586.25
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