At 10:12 am Singapore time (0212 GMT), the ICE January Brent futures contract was down 49 cents/b (0.60%) from the previous close at $81.68/b, while the NYMEX December light sweet crude contract fell 39 cents/b (0.48%) to $80.40/b.
The latest inflation prints could also bring forward the US Federal Reserve’s plans to tighten its easy monetary policy further with earlier rate hikes. A majority of traders were now pricing in a rate hike as early as June 2022, compared to earlier expectations of a hike in November 2022, according to the CME FedWatch Tool. (S&P Global Platts)
The US dollar has strengthened as a result, with the US dollar index notched near highs not seen since July 2020. As of 0212 GMT, the index was down 0.15% at 94.99. Meanwhile, the recovery in global mobility has stalled amid an uptick in COVID-19 cases worldwide. China continues to battle its latest outbreak of cases, while several European countries including Germany, Austria and the Netherlands have registered record caseloads in recent days. (S&P Global Platts)
U.S. energy firms this week added oil and natural gas rigs for a third week in a row with crude prices hovering near a seven-year high, prompting some drillers to return to the wellpad. The oil and gas rig count, an early indicator of future output, rose by six to 556 in the week to Nov. 12, its highest level since April 2020, energy services firm Baker Hughes Co (BKR.N) said on Friday. (Reuters)
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) last week cut its world oil demand forecast for the fourth quarter by 330,000 barrels per day (bpd) from last month’s forecast, as high energy prices hampered economic recovery from the COVID-19 pandemic. Russia’s Rosneft, the world’s second-biggest oil company by output after Saudi Aramco, warned on Friday of a potential “super cycle” in global energy markets, raising the prospect of even higher prices as demand outstrips supply. (Reuters)
OIL MARKET ROUND-UP:
* China’s Oil Processing Jumps to Three-Month High on Diesel Boost
* Italy’s Eni Says Oil Prices Could Reach $100, But Not for Long
* Consensus Eludes Biden Team Weighing Fuel Price Action for Weeks
* China’s Oct. Apparent Oil Demand Rises 1.9% Y/y
* Asia-Americas Fuel: November Shipments Jump On Jet Fuel Pick- Up
Rotterdam 3.5% INDIC
Dec21 416.25 / 418.25
Jan22 416.00 / 418.00
Feb22 415.50 / 417.50
Mar22 413.75 / 415.75
Apr22 411.75 / 413.75
May22 409.50 / 411.50
Q1-22 415.25 / 417.25
Q2-22 409.50 / 411.50
Q3-22 401.25 / 403.25
Q4-22 389.75 / 392.75
CAL22 403.50 / 406.50
CAL23 370.75 / 378.75
Singapore 380 INDIC
Dec21 436.75 / 438.75
Jan22 435.00 / 437.00
Feb22 433.75 / 435.75
Mar22 432.00 / 434.00
Apr22 430.00 / 432.00
May22 427.75 / 429.75
Q1-22 433.75 / 435.75
Q2-22 427.75 / 429.75
Q3-22 421.00 / 423.00
Q4-22 412.50 / 415.50
CAL22 423.25 / 426.25
CAL23 393.00 / 401.00
Rott VLSFO 0.5% INDIC
Dec21 548.25 / 553.25
Jan22 544.50 / 549.50
Feb22 540.75 / 545.75
Mar22 537.00 / 542.00
Apr22 533.25 / 538.25
May22 529.50 / 534.50
Q1-22 540.75 / 545.75
Q2-22 529.50 / 534.50
Q3-22 517.75 / 523.75
Q4-22 507.25 / 513.25
CAL22 523.50 / 529.50
CAL23 482.25 / 491.25
Singapore VLSFO 0.5% INDIC
Dec21 581.50 / 586.50
Jan22 573.00 / 578.00
Feb22 566.50 / 571.50
Mar22 561.50 / 566.50
Apr22 557.50 / 562.50
May22 553.75 / 558.75
Q1-22 567.00 / 572.00
Q2-22 553.75 / 558.75
Q3-22 542.25 / 548.25
Q4-22 531.75 / 537.75
CAL22 548.25 / 554.25
CAL23 506.75 / 515.75
Sing 10ppm GO INDIC
Dec21 90.49 / 90.63
Jan22 89.62 / 89.82
Feb22 88.94 / 89.14
Mar22 88.34 / 88.54
Apr22 87.87 / 88.07
May22 87.39 / 87.59
Q1-22 88.95 / 89.15
Q2-22 87.40 / 87.60
Q3-22 86.16 / 86.36
Q4-22 85.09 / 85.29
CAL22 86.80 / 87.20
CAL23 81.55 / 81.95
Ice Gasoil Swap
Dec21 686.03 / 688.03
Jan22 681.31 / 683.31
Feb22 677.00 / 679.00
Mar22 671.20 / 674.20
Apr22 665.84 / 668.84
May22 661.88 / 664.88
Q1-22 676.15 / 679.15
Q2-22 662.22 / 665.22
Q3-22 656.10 / 659.10
Q4-22 648.61 / 651.61
CAL22 660.78 / 663.78
CAL23 626.43 / 630.43
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