At 10:53 am Singapore time (0253 GMT), the ICE September Brent futures contract was down $1.20/b (1.63%) from the previous close at $72.39/b, while the NYMEX August light sweet crude contract was down $1.14/b (1.59%) at $70.67/b.
A melange of factors including a deal made by OPEC+ to increase supply as well as increasing cases of the Delta variant across the globe has meant that oil prices fell over 1% this morning. OPEC+ ministers agreed on Sunday to increase oil supply from August to cool prices that earlier this month climbed to the highest in around 2-1/2 years as the global economy recovers from the COVID-19 pandemic. The group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, agreed new production shares from May 2022. (Reuters)
The deal also extends the OPEC+ supply management pact to the end of 2022, from its previous expiry of April 2022. In an appeasement to the UAE, the country will receive a 332,000 b/d boost to its reference production level, from which quotas are determined, starting in May 2022. But Saudi Arabia and Russia will also be granted 500,000 b/d baseline increases, while Iraq and Kuwait will get 150,000 b/d rises, in a surprise compromise. Under the deal, the 23-member OPEC+ coalition will ease its production cuts by 400,000 b/d each month starting in August, amounting to a 2 million b/d total increase by the end of the year. (S&P Global Platts)
OIL MARKET ROUND-UP:
* Singapore Prepares to Swap Its Oil Hub Status for Greener Future
* Iran Plans First Oil Export From Gulf of Oman Port Next Week
* Russia to Reach Pre-Covid Oil Output Level in May 2022: Novak
* China’s Gasoline Exports Fall to Six-Month Low on Tight Quota
* Europe’s Refined Fuel Imports From Mideast to Reach 9-Month High
Rotterdam 3.5% INDIC
Aug21 386.25 / 388.25
Sep21 381.75 / 383.75
Oct21 377.50 / 379.50
Nov21 373.75 / 375.75
Dec21 370.75 / 372.75
Jan22 368.50 / 370.50
Q4-21 374.00 / 376.00
Q1-22 366.75 / 368.75
Q2-22 361.00 / 363.00
Q3-22 354.00 / 357.00
CAL22 359.75 / 362.75
Singapore 380 INDIC
Aug21 397.25 / 399.25
Sep21 394.25 / 396.25
Oct21 390.50 / 392.50
Nov21 387.75 / 389.75
Dec21 385.50 / 387.50
Jan22 383.25 / 385.25
Q4-21 387.75 / 389.75
Q1-22 381.75 / 383.75
Q2-22 377.00 / 379.00
Q3-22 371.00 / 374.00
CAL22 378.25 / 381.25
Rott VLSFO 0.5% INDIC
Aug21 504.00 / 509.00
Sep21 501.25 / 506.25
Oct21 498.75 / 503.75
Nov21 496.25 / 501.25
Dec21 493.75 / 498.75
Jan22 491.25 / 496.25
Q4-21 496.25 / 501.25
Q1-22 488.75 / 493.75
Q2-22 480.75 / 486.75
Q3-22 473.25 / 479.25
CAL22 477.00 / 483.00
Singapore VLSFO 0.5% INDIC
Aug21 521.75 / 526.75
Sep21 519.00 / 524.00
Oct21 516.25 / 521.25
Nov21 513.75 / 518.75
Dec21 511.25 / 516.25
Jan22 508.75 / 513.75
Q4-21 513.75 / 518.75
Q1-22 506.25 / 511.25
Q2-22 498.50 / 504.50
Q3-22 491.50 / 497.50
CAL22 495.25 / 501.25
Sing 10ppm GO INDIC
Aug21 78.43 / 78.57
Sep21 78.33 / 78.53
Oct21 78.14 / 78.34
Nov21 77.81 / 78.01
Dec21 77.48 / 77.68
Jan22 77.20 / 77.40
Q4-21 77.80 / 78.00
Q1-22 76.94 / 77.14
Q2-22 76.28 / 76.48
Q3-22 75.87 / 76.07
CAL22 75.99 / 76.39
Ice Gasoil Swap
Aug21 590.81 / 592.81
Sep21 591.64 / 593.64
Oct21 590.60 / 592.60
Nov21 587.91 / 589.91
Dec21 585.83 / 587.83
Jan22 584.45 / 586.45
Q4-21 588.10 / 590.10
Q1-22 583.24 / 585.24
Q2-22 577.73 / 579.73
Q3-22 581.09 / 583.09
CAL22 579.19 / 582.19
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