U.S. West Texas Intermediate (WTI) crude futures dipped 3 cents to $60.02 a barrel at 0510 GMT, retreating from a 13-month high of $60.95 hit on Tuesday. Brent crude futures gained 11 cents, or 0.2%, to $63.46 a barrel before pushing from 0700 up to $63.73 levels, adding to three days of gains.
The US shale production is set to enter a period of depressed supply levels as companies are dealing with frozen equipment and power shortages as the US continues to battle the elements of the cold spell that has swept the nation over the last few days. Texas has been hit with the coldest temperatures in over 30 years and the oil rich state is not usually accustomed to the freezing temperatures, like in Alaska. It Is estimated that 500,000 to 1.2 million barrels per day of oil are currently shut in by the inclement weather as roads are too icy to transport the crude amongst other contributing factors. With Citi estimating that the cumulative production losses in early March could reach 16 million barrels. (Reuters)
OPEC are set to meet on 4th March in order to discuss policy and strategy as the 1 million barrels a day of voluntary cuts from Saudi are due to come to an end at the end of next month. The group are indicating that any easing of cuts will be a slow and measured process as to not undo any of the work that has led to the increase in prices as well as combatting any fresh lockdowns as the pandemic if virus cases were to increase. (Reuters)
The Iraq state oil company is seeing unprecedented demand for its new Basrah medium grade crude, with demand said to be at least double current supply levels according to SOMO. Iraq is OPEC’s second largest oil producer and in January made 576,000 worth of compensation cuts for overproduction in 2020. (S&P Global Platts)
MARKETS NEWS:
* Russia Oil Output Below OPEC+ Quota Amid Cold Siberian Weather
* U.S. January Drilled, Uncompleted Wells Fall to 7,177: EIA
* EIA Sees U.S. Shale-Oil Falling 77K B/D to 7.5M B/D in March
* $3 Gasoline Could Be ‘Right on the Doorstep’ After Texas Chill
OTHER NEWS:
* Cold Disrupts U.S. LNG Exports With Shut Channels, Gas Shortage
* More Shale Producers Postpone Earnings Amid Energy Crisis
* Houston Ship Channel Shuts to All Traffic on Inclement Weather
OIL PRODUCT NEWS:
* U.S.: Citgo Force Majeure, Prospect of $3 Gasoline
* ASIA: Refining Freeze; Bapco Offers March Gasoil
ECONOMIC DATA/EVENTS: (Times are London)
* 9:30pm: API weekly oil inventory report
* EARNINGS: Pioneer Natural Resources, Energy Transfer LP, Marathon Oil Corp., Nabors Industries
ANALYST VIEWS/COLUMNS:
* Australian Fuel Imports Set to Rise on Refinery Closures: FGE
* UBS Raises Oil Price Forecasts, Sees Brent at $65 by Mid-Year
Sing VLSFO 0.5% INDIC
Mar-21 485.75 / 488.25
Apr-21 481.25 / 484.25
May-21 478.50 / 481.50
Jun-21 475.50 / 479.00
Jul-21 472.75 / 476.25
Aug-21 469.75 / 473.75
Q2-21 478.00 / 482.00
Q3-21 469.50 / 474.00
Q4-21 461.75 / 466.75
Q1-22 454.25 / 460.25
CAL22 444.00 / 450.00
Rott VLSFO 0.5% INDIC
Mar-21 461.75 / 464.25
Apr-21 459.00 / 462.00
May-21 456.50 / 459.50
Jun-21 453.75 / 457.25
Jul-21 451.00 / 454.50
Aug-21 448.00 / 452.00
Q2-21 456.00 / 460.00
Q3-21 447.75 / 452.25
Q4-21 439.25 / 444.25
Q1-22 431.75 / 437.75
CAL22 424.00 / 430.00
Sing 10ppm GO INDIC
Mar-21 69.34 / 69.46
Apr-21 69.23 / 69.37
May-21 69.08 / 69.24
Jun-21 68.91 / 69.09
Jul-21 68.74 / 68.92
Aug-21 68.57 / 68.77
Q2-21 69.07 / 69.25
Q3-21 68.55 / 68.75
Q4-21 67.96 / 68.20
Q1-22 67.27 / 67.57
CAL22 66.61 / 66.91
ICE Gasoil 10ppm INDIC
Mar-21 519.00 / 520.00
Apr-21 519.25 / 520.25
May-21 518.50 / 519.50
Jun-21 517.50 / 519.00
Jul-21 516.75 / 518.25
Aug-21 516.25 / 517.75
Q2-21 518.50 / 519.50
Q3-21 516.25 / 517.75
Q4-21 513.00 / 514.50
Q1-22 508.75 / 511.25
CAL22 504.00 / 507.00
Sing 380 cst INDIC
Mar-21 366.75 / 368.25
Apr-21 365.50 / 367.00
May-21 363.00 / 365.00
Jun-21 360.00 / 362.00
Jul-21 356.50 / 359.00
Aug-21 353.00 / 355.50
Q2-21 362.50 / 365.00
Q3-21 352.50 / 355.50
Q4-21 340.75 / 343.75
Q1-22 331.75 / 335.25
CAL22 321.75 / 326.75
Rotterdam 3.5% INDIC
Mar-21 351.75 / 353.25
Apr-21 350.75 / 352.25
May-21 348.00 / 350.00
Jun-21 344.25 / 346.25
Jul-21 340.00 / 342.50
Aug-21 335.25 / 337.75
Q2-21 347.25 / 349.75
Q3-21 334.75 / 337.75
Q4-21 319.50 / 322.50
Q1-22 310.25 / 313.75
CAL22 301.00 / 306.00
Sing hi5 Rdam hi5
Mar-21 120.00 111.00
Apr-21 117.00 109.00
May-21 116.00 109.00
Jun-21 116.00 110.00
Jul-21 117.00 112.00
Aug-21 118.00 114.00
Q2-21 116.00 110.00
Q3-21 118.00 114.00
Q4-21 122.00 121.00
Q1-22 124.00 123.00
CAL22 123.00 124.00
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