Good morning all. Brent futures were up 40 cents, or 0.9%, at $44.80 a barrel at 3:01 am GMT, while WTI futures rose 50 cents, or 1.2%, to $41.72 a barrel.
After a two-day losing streak, oil gained momentum as Saudi Aramco predicted demand will continue to improve through the rest of the year, despite many regions across the world struggling to bring the coronavirus under control.
Saudi Arabian Aramco’s Chief Executive Amin Nasser said on Sunday he sees oil demand rebounding in Asia as economies gradually open up after the easing of coronavirus lockdowns. He also added that demand is around 90 million barrels a day, compared with pre-pandemic levels of roughly 100 million barrels a day. The rosy outlook for oil was supported by Michael McCarthy, chief market strategist at CMC Markets Asia Pacific, who confirmed that the demand recovery is better than expected and that’s supporting prices.
Meanwhile, hopes grew on stalled talks between U.S. Democrats and the White House on a new support package for cash-strapped U.S. states hit by the coronavirus pandemic, delays in reaching a deal weighed on the market. On the supply side, Iraq said on Friday it would cut its oil output by a further 400,000 barrels per day in August and September to compensate for its overproduction in the past three months. Iraq’s total reduction will amount to 1.25 million b/d in August and September.
The Saudi and Iraqi energy ministers said in a joint statement that OPEC+ efforts would improve the stability of global oil markets, accelerate its balancing and send positive signals to the markets. In the U.S., the number of active drill rigs fell by four to 176, the lowest since July 2005, according to Baker Hughes data released on Friday. Companies have been parking rigs on an almost uninterrupted streak for more than four and a half months.
MARKETS NEWS:
* Oil India Production Hit by Protests After Baghjan Well Blowout
* Oil Drilling Drops to 15-Year Low With Shale in Full Retreat
* Hedge Fund Managers Boost Net Bullish Nymex WTI Crude Oil Bets
* Middle East OPEC+ Countries See ‘Encouraging’ Recovery Signs
* Fuel Rationing Plunges Oil-Rich Venezuela Deeper Into Crisis
* Argentina Exports Most Oil and Gas in at Least a Decade: Chart
* Azerbaijan Almost Met OPEC+ Commitment to Cut Oil Output in July
OTHER NEWS:
* Aramco Still Aims for $15 Billion Investment in India’s Reliance
* Ex-Lukoil Trader Prevails in Bonus Dispute Over Venezuela Deal
* Bad Weather Hurts Efforts to Stop Oil Spill Off Mauritius
PHYSICAL CRUDE NEWS:
* ASIA: Iraq Forced Into Compliance; U.S.-China Ships Booked
* LATAM: Iranian Gasoline Stranded; Medanito, Escalante Sale
* US/CANADA: Oil Drilling Drops to a 15-Year Low
* NSEA: BP Offers Brent Lower; Mercuria Seeks Oseberg
* MED: Trafigura Sells Urals at 4-Month Low; BTC Loadings
* WAF: Angola Sales Gain Pace; Nigeria Sales Are Still Slow
OIL PRODUCT NEWS:
* ASIA: Floating Storage Falls; Saudi Cuts Underwhelm
* EUROPE: Litasco Sells Diesel Cargo; Ineos Lavera
* U.S.: Gulf Coast Jet Fuel Touches 5-Month High
ANALYST COLUMNS:
* Saudi Arabia Turns Off the U.S. Oil Taps Again: Julian Lee
OTHER FINANCIAL MARKETS:
* Dollar Steady, With Stocks Trading Mixed; Oil Up: Markets Wrap
Rotterdam 3.5% INDIC
Sep20 240.50 / 242.50
Oct20 239.25 / 241.25
Nov20 239.25 / 241.25
Dec20 239.75 / 241.75
Jan21 241.75 / 243.75
Feb21 243.50 / 245.50
Q4-20 239.25 / 241.25
Q1-21 243.50 / 245.50
Q2-21 248.00 / 250.00
Q3-21 251.00 / 254.00
CAL21 247.50 / 253.50
Singapore 380 INDIC
Sep20 250.50 / 252.50
Oct20 251.50 / 253.50
Nov20 252.75 / 254.75
Dec20 254.25 / 256.25
Jan21 256.25 / 258.25
Feb21 258.50 / 260.50
Q4-20 252.75 / 254.75
Q1-21 258.25 / 260.25
Q2-21 264.75 / 266.75
Q3-21 268.75 / 271.75
CAL21 264.50 / 270.50
Rott VLSFO 0.5% INDIC
Sep20 301.50 / 306.50
Oct20 305.25 / 310.25
Nov20 308.00 / 313.00
Dec20 310.00 / 315.00
Jan21 313.50 / 318.50
Feb21 316.50 / 321.50
Q4-20 307.75 / 312.75
Q1-21 316.25 / 321.25
Q2-21 325.50 / 331.50
Q3-21 329.75 / 337.75
CAL21 326.50 / 334.50
Singapore VLSFO 0.5% INDIC
Sep20 319.50 / 324.50
Oct20 322.75 / 327.75
Nov20 325.50 / 330.50
Dec20 328.25 / 333.25
Jan21 331.75 / 336.75
Feb21 334.75 / 339.75
Q4-20 325.50 / 330.50
Q1-21 334.75 / 339.75
Q2-21 344.50 / 350.50
Q3-21 349.00 / 357.00
CAL21 346.50 / 354.50
Sing 10ppm GO INDIC
Sep20 49.29 / 49.43
Oct20 49.64 / 49.84
Nov20 50.00 / 50.20
Dec20 50.38 / 50.58
Jan21 49.92 / 50.12
Feb21 50.38 / 50.58
Q4-20 49.95 / 50.25
Q1-21 50.35 / 50.65
Q2-21 51.64 / 51.94
Q3-21 52.87 / 53.17
CAL21 52.04 / 52.44
ICE Gasoil 10ppm INDIC
Sep20 373.71 / 375.71
Oct20 378.27 / 380.27
Nov20 381.36 / 383.36
Dec20 385.03 / 387.03
Jan21 388.91 / 390.91
Feb21 392.25 / 394.25
Q4-20 381.55 / 383.55
Q1-21 391.56 / 393.56
Q2-21 404.72 / 406.72
Q3-21 414.39 / 416.39
CAL21 405.50 / 407.50