Brent crude for April touched an intraday high of $60.06 a barrel, the highest since January last year. The front-month contract was at $59.98 by 0537 GMT, up 64 cents, or 1.1%. U.S. West Texas Intermediate crude futures for March advanced 65 cents, or 1.1%, to $57.50 a barrel, the highest since January last year.
Hedge funds are once again betting on oils return after the crash of oil prices during the pandemic. This caused fundamental issues in supply throughout 2020 with supply heavily affected and Hedge funds have taken the view that this restriction in supply will push oil prices up. May mergers were seen in 2020, especially in the US as Shale producers looked to consolidate supply chains. Energy focused funds shorted the oil sector in the lead up to the global shutdowns and saw gains of 25%, this has now taken an opposite view as oil producers look to take advantage of the increasing oil prices. (Reuters)
Crude is rebounding to levels not seen in over a year, as Chinese oil demand surpasses that of pre-pandemic levels which saw Brent oil future hit near $60. Vaccine rollouts of different varieties globally and OPEC tightening supply in the oil market is having a positive influence on the oil market to see oil prices recover after huge losses in 2020. Transport fuels are still showing lacklustre demand figures, but petroleum products are showing huge signs of recovery as the pandemic looks to be petering out within the next few months ahead. Yet, there are a few that are questioning this huge rise in oil prices from last November and whether it can be sustained. (Bloomberg)
A gauge of global equity markets scaled a new record on Friday on expectations of further stimulus from Washington and hopes of an economic revival. Saudi Arabia’s benchmark index advanced 0.8%, buoyed by a 1.4% gain in Al Rajhi Bank and a 5.6% surge in Bank Albilad after it reported an increase in full year profit. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 341.02
* Rott 3.5%: 328.40
* Sing 0.5%: 455.69
* Rott 0.5%: 427.35
MARKETS NEWS:
* Oil’s Remarkable Rebound From a Year of Catastrophe
* Oil Markets Have Got Ahead of Themselves, Trader Vitol Says
* Iran Claims No Knowledge of Oil Cargo U.S. Wants to Seize
* An Oil Country No More? Algeria’s Energy Exports Sink Rapidly
* Bolsonaro Says on Verge of Fuel Tax Cut in Brazil
* Petrobras to Keep Adjusting Brazil Fuel Prices to Global Levels
* Colombia Fuels Demand Weakens With New Covid Restriction
OTHER NEWS:
* U.K. on Cusp of Battery Boom to Boost Renewable Power Supply
* Ex-Shell Gas Trader Pleads Guilty Over Role in Scheme
OIL PRODUCT NEWS:
* U.S.: Asia Looks to U.S. Naphtha as Petchems Feed
* EUROPE: Pernis Maintenance; Rhine River Closures
* ASIA: Middle-Distillate Demand to Gain; CPC Fire
ECONOMIC DATA/EVENTS: (Times are London. )
* BTC Azeri crude loading program for March
* EARNINGS: Bharat Petroleum Corp.
ANALYST VIEWS/COLUMNS:
* Oil’s Recovery Is Too Fast for Its Own Good: Julian Lee
* IMO 2020 Fuel Oil Floating Near Singapore Falls 3.1% W/w: Kpler
* Chinese Oil Imports Rebound in January After Weak Dec.: Kpler
*Rotterdam 3.5% INDIC*
Mar21 337.00 / 339.00
Apr21 335.25 / 337.25
May21 332.25 / 334.25
Jun21 328.25 / 330.25
Jul21 324.00 / 326.00
Aug21 319.25 / 321.25
Q2-21 332.00 / 334.00
Q3-21 319.25 / 321.25
Q4-21 304.25 / 306.25
Q1-22 295.50 / 298.50
CAL22 284.50 / 290.50
*Singapore 380 INDIC*
Mar21 352.25 / 354.25
Apr21 350.25 / 352.25
May21 347.75 / 349.75
Jun21 344.50 / 346.50
Jul21 340.75 / 342.75
Aug21 337.25 / 339.25
Q2-21 347.50 / 349.50
Q3-21 337.25 / 339.25
Q4-21 325.75 / 327.75
Q1-22 318.00 / 321.00
CAL22 306.50 / 312.50
*Rott VLSFO 0.5% INDIC*
Mar21 439.00 / 444.00
Apr21 435.75 / 440.75
May21 432.50 / 437.50
Jun21 429.75 / 434.75
Jul21 427.00 / 432.00
Aug21 424.50 / 429.50
Q2-21 432.75 / 437.75
Q3-21 424.75 / 429.75
Q4-21 418.00 / 424.00
Q1-22 412.75 / 420.75
CAL22 399.50 / 407.50
*Singapore VLSFO 0.5% INDIC*
Mar21 465.25 / 470.25
Apr21 459.75 / 464.75
May21 455.25 / 460.25
Jun21 451.75 / 456.75
Jul21 448.25 / 453.25
Aug21 445.25 / 450.25
Q2-21 455.75 / 460.75
Q3-21 445.50 / 450.50
Q4-21 437.25 / 443.25
Q1-22 431.25 / 439.25
CAL22 423.50 / 431.50
*Sing 10ppm GO INDIC*
Mar21 65.96 / 66.10
Apr21 65.92 / 66.12
May21 65.79 / 65.99
Jun21 65.66 / 65.86
Jul21 65.55 / 65.75
Aug21 65.43 / 65.63
Q2-21 65.75 / 66.05
Q3-21 65.38 / 65.68
Q4-21 64.94 / 65.24
Q1-22 64.61 / 64.91
CAL22 64.31 / 64.71
*ICE Gasoil 10ppm INDIC*
Mar21 491.28 / 493.28
Apr21 491.68 / 493.68
May21 491.50 / 493.50
Jun21 491.12 / 493.12
Jul21 490.83 / 492.83
Aug21 490.59 / 492.59
Q2-21 491.45 / 493.45
Q3-21 490.70 / 492.70
Q4-21 488.37 / 490.37
Q1-22 485.02 / 487.02
CAL22 484.13 / 486.13
Rott Hi5 Sing Hi5
Mar21 103.60 114.60
Apr21 102.10 111.10
May21 101.85 109.10
Jun21 103.10 108.85
Jul21 104.60 109.10
Aug21 106.85 109.60
Q2-21 102.35 109.70
Q3-21 107.02 109.85
Q4-21 115.85 113.68
Q1-22 119.68 115.85
CAL22 111.00 117.00
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