Good morning all. Crude oil futures rallied during mid-morning Asian trade Oct. 8, extending overnight gains, following reports that the US has no current plans to tap into the country’s oil reserves to help quell rising gasoline prices. Crude oil had come under pressure after US Energy Secretary Jennifer Granholm told the Financial times on Oct. 6 that her department was considering an emergency release from the SPR and reimposing the crude export ban, which would help ease tight supplies.
However, crude oil futures climbed back up after the DOE released a statement on Oct. 7 saying that Granholm had not endorsed either option and was only including them among “all the tools” open to the administration. This had shifted market’s focus back on the strength of demand amid the energy crisis heading into winter. NYMEX November RBOB was up 1.68 cents at $2.3512/gal, while November ULSD rose 1.54 cents to $2.4750/gal. “An acceleration in gas-to-oil switching could boost crude oil demand used to generate power this coming northern hemisphere winter, however, the US may be heading into winter with its lowest stockpiles of heating oil for decades,” ANZ research analysts said in a daily note Oct. 8.
“EIA data shows that inventories of distillate, used for both diesel and heating oil, are enough to meet 31.2 days of demand. This is the tightest it has been since 2000,” ANZ analysts added. This also comes after the OPEC+ coalition of OPEC and other oil producers decided on Oct. 4 to stick to its existing plan of raising output only in November by 400,000 b/d, which is likely to leave the market tight in the near term. The oil market remains heavily in deficit, which will likely be the case over winter and should it be a cold winter in the north, the prospects of front month Brent crude futures hitting $90/b seem very likely. As for WTI crude, analysts said it may need a fresh catalyst to break above $80/b, which could happen if the recovery in the US labour market shows that the economy is heating up again. (S&P Global Platts)
OIL MARKET ROUND-UP:
* U.S. Agency Has No Plans at This Time to Tap Into Oil Supply
* U.S. Heating Oil Supply at 20-Year Low
* U.S. Is Facing the Lowest Supplies of Heating Oil in Two Decades
* Chinese Fuel Oil and Crude Prices Jump as Local Markets Reopen
* China’s Back From Holiday to Face a Protracted Power Squeeze
Singapore 380 INDIC
Nov21 485.50 / 487.50
Dec21 478.75 / 480.75
Jan22 472.50 / 474.50
Feb22 468.00 / 470.00
Mar22 463.75 / 465.75
Apr22 460.00 / 462.00
Q1-22 468.00 / 470.00
Q2-22 456.25 / 458.25
Q3-22 445.25 / 447.25
Q4-22 434.25 / 437.25
CAL22 450.50 / 453.50
Rotterdam 3.5% INDIC
Nov21 461.50 / 463.50
Dec21 455.50 / 457.50
Jan22 450.75 / 452.75
Feb22 447.00 / 449.00
Mar22 443.25 / 445.25
Apr22 439.50 / 441.50
Q1-22 447.00 / 449.00
Q2-22 435.75 / 437.75
Q3-22 423.50 / 425.50
Q4-22 410.25 / 413.25
CAL22 428.75 / 431.75
Singapore VLSFO 0.5% INDIC
Nov21 579.50 / 584.50
Dec21 576.50 / 581.50
Jan22 573.50 / 578.50
Feb22 570.50 / 575.50
Mar22 567.50 / 572.50
Apr22 564.50 / 569.50
Q1-22 570.50 / 575.50
Q2-22 561.50 / 566.50
Q3-22 552.00 / 558.00
Q4-22 543.25 / 549.25
CAL22 556.50 / 562.50
Rott VLSFO 0.5% INDIC
Nov21 560.00 / 565.00
Dec21 557.00 / 562.00
Jan22 554.25 / 559.25
Feb22 551.25 / 556.25
Mar22 548.25 / 553.25
Apr22 545.25 / 550.25
Q1-22 551.25 / 556.25
Q2-22 542.25 / 547.25
Q3-22 532.75 / 538.75
Q4-22 523.75 / 529.75
CAL22 537.25 / 543.25
Sing 10ppm GO INDIC
Nov21 94.03 / 94.17
Dec21 93.33 / 93.53
Jan22 92.68 / 92.88
Feb22 92.07 / 92.27
Mar22 91.50 / 91.70
Apr22 90.91 / 91.11
Q1-22 92.10 / 92.30
Q2-22 90.32 / 90.52
Q3-22 88.52 / 88.72
Q4-22 87.09 / 87.29
CAL22 89.40 / 89.80
Ice Gasoil Swap
Nov21 711.53 / 713.53
Dec21 706.56 / 708.56
Jan22 701.89 / 703.89
Feb22 696.83 / 698.83
Mar22 691.34 / 693.34
Apr22 686.04 / 688.04
Q1-22 696.70 / 698.70
Q2-22 682.79 / 684.79
Q3-22 668.06 / 670.06
Q4-22 654.29 / 656.29
CAL22 674.96 / 677.96
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