Brent crude was down by 21 cents, or 0.3%, at $66.37 a barrel by 0129 GMT pushing up to 66.61 by 0630GMT, after gaining 4.6% on Wednesday and closing at the highest since March 17. U.S. West Texas Intermediate futures dropped 25 cents, or 0.4%, to $62.9 a barrel, having risen 4.9% in the previous session.
EIA Report
Crude: -5,889
Cushing: 0,346
Distillate: -2,083
Gasoline: 0,309
Production: 100
EIA report from yesterday reported numbers a lot more positive than predicted, with crude stocks falling by just under six million barrels last week with gasoline stocks rising albeit by only 300,000 barrels in a sign that the economy may be able to start absorbing the extra supply, as the US begins to prepare for life after lockdown. Refinery utilization rates rose by 1 percentage point to 85% of overall capacity. That is the highest since March of last year, just before the coronavirus pandemic caused refiners to severely restrict processing activities as demand dove. (Reuters)
The EIA increased its US oil demand forecast for the second half of the year by around 365,000 b/d in the light of quick vaccine rollouts and plans for massive economic stimulus spending. “Oil markets fundamentals look decidedly stronger,” the IEA said. “The massive overhang in global oil inventories that built up during last year’s COVID-19 demand shock is being worked off, vaccine campaigns are gathering pace, and the global economy appears to be on a better footing.” (S&P Global Platts)
Summer travel season in the US is also pushing airlines such as American Airlines to see seat capacity within 10%-20% of 2019 levels or pre-pandemic capacity levels which has mirrored the bullish sentiment seen through the oil market. This news gave a push to the Jet fuel derivatives market as travel in the US is expected to return over the next six months as the population continues to be inoculated with the COVID-19 vaccines and exit lockdown restrictions. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 354.93
* Rott 3.5%: 342.53
* Sing 0.5%: 468.57
* Rott 0.5%: 449.97
*Rotterdam 3.5% INDIC*
May21 366.75 / 368.75
Jun21 364.75 / 366.75
Jul21 361.25 / 363.25
Aug21 356.75 / 358.75
Sep21 351.50 / 353.50
Oct21 345.50 / 347.50
Q3-21 356.50 / 358.50
Q4-21 341.00 / 343.00
Q1-22 333.25 / 335.25
Q2-22 327.50 / 330.50
CAL22 321.50 / 327.50
*Singapore 380 INDIC*
May21 379.25 / 381.25
Jun21 377.25 / 379.25
Jul21 374.25 / 376.25
Aug21 370.75 / 372.75
Sep21 367.00 / 369.00
Oct21 362.75 / 364.75
Q3-21 370.75 / 372.75
Q4-21 359.75 / 361.75
Q1-22 353.25 / 355.25
Q2-22 347.50 / 350.50
CAL22 341.25 / 347.25
*Rott VLSFO 0.5% INDIC*
May21 470.25 / 475.25
Jun21 469.25 / 474.25
Jul21 468.00 / 473.00
Aug21 466.75 / 471.75
Sep21 465.50 / 470.50
Oct21 464.25 / 469.25
Q3-21 466.75 / 471.75
Q4-21 463.00 / 468.00
Q1-22 458.75 / 464.75
Q2-22 454.00 / 462.00
CAL22 452.25 / 460.25
*Sing VLSFO 0.5% INDIC*
May21 492.50 / 497.50
Jun21 490.50 / 495.50
Jul21 489.00 / 494.00
Aug21 487.75 / 492.75
Sep21 486.75 / 491.75
Oct21 485.75 / 490.75
Q3-21 487.75 / 492.75
Q4-21 484.75 / 489.75
Q1-22 481.50 / 487.50
Q2-22 478.25 / 486.25
CAL22 477.25 / 485.25
*Sing 10ppm GO INDIC*
May21 70.73 / 70.87
Jun21 70.84 / 71.04
Jul21 70.96 / 71.16
Aug21 71.06 / 71.26
Sep21 71.15 / 71.35
Oct21 71.14 / 71.34
Q3-21 71.00 / 71.30
Q4-21 70.94 / 71.24
Q1-22 70.75 / 71.05
Q2-22 70.56 / 70.86
CAL22 70.39 / 70.79
*ICE Gasoil 10ppm INDIC*
May21 531.26 / 535.26
Jun21 533.38 / 537.38
Jul21 534.71 / 538.71
Aug21 536.06 / 540.06
Sep21 537.27 / 541.27
Oct21 537.23 / 541.23
Q3-21 536.00 / 540.00
Q4-21 536.29 / 540.29
Q1-22 535.02 / 539.02
Q2-22 530.84 / 534.84
CAL22 531.17 / 535.17
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Email: jarryds@freightinvestor.com
Mobile: (+65) 87984987
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