Brent crude futures for May hit $71.38 a barrel in early Asian trade, the highest since Jan. 8, 2020, and were at $70.96 a barrel by 0611 GMT, up $1.60, or 2.3%. U.S. West Texas Intermediate (WTI) crude for April rose $1.47, or 2.2%, to $67.56. The front-month WTI price touched $67.98 a barrel earlier, the highest since October 2018.
Oil prices pushed even further on Monday as there were report s of an attempted attack on certain Saudi Arabia Crude terminals over the weekend which included drones and missiles. The attack shows the fragility of the situation in the Energy sector, and this comes 18 months after the Iranian strikes that took out nearly half of the Kingdoms output (Reuters)
Crude soared to the highest level since 2019 last week at the OPEC meeting that took place on Thursday 4th March confirmed that output would remain unchanged for the month of April as the global economies still are under threat from any recurring breakouts of the Virus, as well as any uncontrollable strains that may be found to overwhelm any previous vaccine rollout campaigns globally. Saudi Arabi are also not increasing production levels from February or March, keeping the one million barrels per day of compensatory cuts in place until at least April.
The non-farm payroll report also showed to be positive, with the general feeling being that the economy is pushing back towards pre-pandemic levels of demand which in turn should support crude prices as demand picks-up. Prices were capped however on Friday as market participants saw the dollar strengthening to highest levels since November 2020. Analysts are also looking closer at the physical market and not seeing the same momentum seen in the futures marketplace which could be an indicator of a slight overreaction to the OPEC news announced last week. (Reuters)
The Abu Dhabi Commercial Bank has increased its forecasts for the price of Brent over the last few days in response to the OPEC decision as well as the potential for the group to taper cuts past April rather than opening the floodgates. The bank in a Jan. 27 report had forecast Brent at $54.70/b for 2021 and $60/b for 2022. The bank believe that OPEC can now act more quickly with the current output plans to any changes in the global economy. The OPEC+ alliance, which controls about half of the world’s production capacity, will mostly maintain its quotas, with Russia allowed a 130,000 b/d increase and Kazakhstan a 20,000 b/d rise. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 373.57
* Rott 3.5%: 366.25
* Sing 0.5%: 492.55
* Rott 0.5%: 477.00
OIL MARKET ROUND-UP:
* Saudis Raise Crude Prices to Asia, U.S. as OPEC+ Extends Cuts
* Asia Fuel Surge Lifts Tanker Rates on One Route From 2012 Low
* China’s Jan.-Feb. Crude Oil Imports Rise to 11.13M B/d: GAC
* U.S. Makes First Strategic Reserve Crude Sale to Foreign Nation
* SK Innovation to Sell U.S. Oil Operations Amid Green Push
* European Gasoline Diverted to Texas to Ease Supply Crunch
OTHER NEWS:
* Libya’s Unity Government to Restore Oil and Gas Ministry
* Iran Sends U.K. Charity Worker Back to Court After Release
* China’s Soaring Exports Show Strong Demand a Year After Lockdown
* OPEC+ Surprise Sees Oil Soar Past Gulf’s Budget-Balancing Levels
* China’s Race to Net Zero Emissions Gets Off to a Slow Start
OIL PRODUCT NEWS:
* U.S.: Gasoline Diverted to Texas, Refinery Restarts
* EUROPE: Small Air Traffic Bounce; Exxon Rotterdam
* ASIA: China Demand Growth Accelerates; BHP Diesel
Rotterdam 3.5% INDIC
Apr21 391.75 / 393.75
May21 388.00 / 390.00
Jun21 382.75 / 384.75
Jul21 377.25 / 379.25
Aug21 371.50 / 373.50
Sep21 365.50 / 367.50
Q2-21 387.50 / 389.50
Q3-21 371.50 / 373.50
Q4-21 354.25 / 356.25
Q1-22 343.75 / 346.75
CAL22 332.00 / 335.00
Singapore 380 INDIC
Apr21 402.75 / 404.75
May21 400.25 / 402.25
Jun21 396.50 / 398.50
Jul21 392.50 / 394.50
Aug21 388.25 / 390.25
Sep21 383.50 / 385.50
Q2-21 399.75 / 401.75
Q3-21 388.00 / 390.00
Q4-21 374.00 / 376.00
Q1-22 364.50 / 367.50
CAL22 352.00 / 355.00
Rott VLSFO 0.5% INDIC
Apr21 500.75 / 505.75
May21 498.25 / 503.25
Jun21 495.75 / 500.75
Jul21 493.25 / 498.25
Aug21 490.75 / 495.75
Sep21 488.25 / 493.25
Q2-21 498.25 / 503.25
Q3-21 490.75 / 495.75
Q4-21 482.75 / 488.75
Q1-22 475.25 / 481.25
CAL22 465.00 / 471.00
Singapore VLSFO 0.5% INDIC
Apr21 522.50 / 527.50
May21 520.25 / 525.25
Jun21 518.00 / 523.00
Jul21 515.75 / 520.75
Aug21 513.50 / 518.50
Sep21 511.25 / 516.25
Q2-21 520.25 / 525.25
Q3-21 513.50 / 518.50
Q4-21 506.25 / 512.25
Q1-22 499.50 / 505.50
CAL22 489.75 / 495.75
Sing 10ppm GO INDIC
Apr21 74.81 / 74.95
May21 74.76 / 74.96
Jun21 74.66 / 74.86
Jul21 74.51 / 74.71
Aug21 74.36 / 74.56
Sep21 74.17 / 74.37
Q2-21 74.75 / 74.95
Q3-21 74.35 / 74.55
Q4-21 73.61 / 73.81
Q1-22 72.78 / 72.98
CAL22 71.88 / 72.28
Ice Gasoil Swap
Apr21 561.11 / 563.11
May21 561.50 / 563.50
Jun21 561.17 / 563.17
Jul21 560.66 / 562.66
Aug21 559.99 / 561.99
Sep21 559.59 / 561.59
Q2-21 561.25 / 563.25
Q3-21 560.08 / 562.08
Q4-21 555.83 / 557.83
Q1-22 543.53 / 545.53
CAL22 535.55 / 538.55
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