At 11:28 am Singapore time (0328 GMT), the ICE August Brent futures contract was up 47 cents/b (0.64%) from the previous settle at $73.98/b, while the NYMEX WTI July light sweet crude contract was up 55 cents/b (0.77%) at $72.19/b.
News over the weekend saw Iraq state news agency report that oil would reach $80 per barrel but did not however present a timeframe for the increase from current levels, this would corroborate the forecasts from the bank Goldman Sachs who foresee oil hitting up to $80 and beyond in the second half of the year. (Reuters)
World powers resumed another round of nuclear deal negotiations with Iran on June 20, a day after hardliner judiciary chief Ebrahim Raisi won presidential elections that could see the sanctioned OPEC producer seek to increase oil output this year. S&P Global Platts Analytics expects that a JCPOA agreement could lead to sanctions relief by September, which would boost crude and condensate exports to 1.5 million b/d by December, from 600,000 b/d in May. (S&P Global Platts)
Rising oil demand in the United States and flat domestic production in recent months have boosted the price of the U.S. oil benchmark WTI Crude, which has significantly narrowed the discount to Brent Crude in recent weeks. According to GasBuddy data, weekly U.S. gasoline demand for the week to June 13 rose for the fourth consecutive week to a new pandemic high, and was up by 0.8 percent from the prior week. U.S. gasoline and distillates production is also rising, with gasoline production averaging 9.9 million barrels per day (bpd) in the week to June 11, compared with 9.4 million bpd a week earlier, the EIA said in this week’s inventory report. Production of middle distillates averaged 5.1 million bpd last week, compared with 4.9 million bpd a week earlier. (OilPrice.com)
Demand for 0.5%S fuel in Asia remains lukewarm and the lifting of the 14 day mandatory quarantine is only expected to increase demand marginally in the port city area according to traders. In the high sulphur fuel oil market, the increase in demand for straight-run fuel oil as a refinery feedstock in East Asia has also seen competing demand for the grade as a blending component for cargoes destined for the power generation market in Kuwait and Pakistan, according to market traders based in Fujairah. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 398.52
* Rott 3.5%: 385.98
* Sing 0.5%: 517.77
* Rott 0.5%: 498.64
Rotterdam 3.5% INDIC
Jul21 392.00 / 394.00
Aug21 390.50 / 392.50
Sep21 387.75 / 389.75
Oct21 384.75 / 386.75
Nov21 381.75 / 383.75
Dec21 378.75 / 380.75
Q3-21 390.25 / 392.25
Q4-21 381.75 / 383.75
Q1-22 374.25 / 376.25
Q2-22 367.00 / 370.00
CAL22 362.75 / 365.75
Singapore 380 INDIC
Jul21 405.00 / 407.00
Aug21 404.50 / 406.50
Sep21 403.00 / 405.00
Oct21 400.50 / 402.50
Nov21 398.25 / 400.25
Dec21 396.25 / 398.25
Q3-21 404.00 / 406.00
Q4-21 398.25 / 400.25
Q1-22 392.00 / 394.00
Q2-22 384.75 / 387.75
CAL22 381.25 / 384.25
Rott VLSFO 0.5% INDIC
Jul21 500.25 / 505.25
Aug21 499.50 / 504.50
Sep21 498.75 / 503.75
Oct21 497.75 / 502.75
Nov21 496.50 / 501.50
Dec21 495.00 / 500.00
Q3-21 499.50 / 504.50
Q4-21 496.50 / 501.50
Q1-22 490.75 / 496.75
Q2-22 484.75 / 490.75
CAL22 481.00 / 487.00
Singapore VLSFO 0.5% INDIC
Jul21 518.75 / 523.75
Aug21 518.75 / 523.75
Sep21 518.25 / 523.25
Oct21 517.25 / 522.25
Nov21 516.00 / 521.00
Dec21 514.75 / 519.75
Q3-21 518.50 / 523.50
Q4-21 516.00 / 521.00
Q1-22 511.25 / 517.25
Q2-22 505.75 / 511.75
CAL22 502.25 / 508.25
Sing 10ppm GO INDIC
Jul21 79.12 / 79.26
Aug21 79.04 / 79.24
Sep21 78.90 / 79.10
Oct21 78.72 / 78.92
Nov21 78.44 / 78.64
Dec21 78.14 / 78.34
Q3-21 79.00 / 79.20
Q4-21 78.44 / 78.64
Q1-22 77.71 / 77.91
Q2-22 77.01 / 77.21
CAL22 76.61 / 77.01
Ice Gasoil Swap
Jul21 593.98 / 595.98
Aug21 595.27 / 597.27
Sep21 596.02 / 598.02
Oct21 594.89 / 596.89
Nov21 592.25 / 594.25
Dec21 590.38 / 592.38
Q3-21 595.10 / 597.10
Q4-21 592.50 / 594.50
Q1-22 587.89 / 589.89
Q2-22 581.28 / 583.28
CAL22 580.44 / 583.44
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