At 10:57 am Singapore time (0257 GMT), the ICE November Brent futures contract was up 62 cents/b (0.84%) from the previous close at $74.54/b, while the NYMEX October light sweet crude contract rose 64 cents/b (0.91%) to $70.93/b.
Analysts have said that higher gas prices spurred by the tightness in the European gas market has offered support to the oil market. “European natural gas prices continued to trade higher. Gazprom yesterday booked no additional pipeline capacity via Ukraine for October, while only around a third of the capacity offered via the Yamal-Europe pipeline was booked, which has intensified concerns over tightness,” ING analysts said Sept. 21. The tight supply in the European gas market suggests that prices are likely to remain elevated. These higher gas prices should offer some support to the oil market, with a growing potential for gas to oil switching, they added. (S&P Global Platts)
Over at the US Gulf of Mexico, less than a quarter of crude production remain offline, nearly three weeks after Hurricane Ida ravaged the Louisiana Gulf Coast. About 331,078 b/d of crude, or 18%, were still offline Sept. 20, according to the US Bureau of Safety and Environmental Enforcement, after Hurricane Ida shut in 95% of production at the end of August. Despite the proportion of offline production on the decline, Shell has, however, pointed out that it will take some time to restore output to pre-Hurricane Ida levels. At the moment about 60% of the company’s US offshore Gulf of Mexico output is back online. However, with serious damage sustained to a transfer facility, the remaining output is only expected to be fully restored Q1 2022. (S&P Global Platts)
Saudi Arabia saw its crude oil exports to China surge by 53 percent annually in August, keeping its status of top supplier to the world’s largest oil importer for a ninth consecutive month, official Chinese data cited by Reuters showed. (Oilprice.com)
OIL MARKET ROUND-UP:
* U.S. Sour Mars Crude Rises After Shell Warns of Long Outage
* Diesel May Be Big Winner as Asia’s Winter Gas Crunch Fans Demand
* ConocoPhillips to Buy Shell Permian Assets for $9.5 Billion
* Private Oil Explorers Drill On, Running the Most Rigs Since 2019
* U.S. Energy Secretary Wants to Keep Lid on Oil Prices
* Shell to Give 75% of $9.5 Billion Permian Sale to Investors
* The Oil Market Awaits a Demand Surge From Gas Crisis Spillover
* U.S. Gasoline Imports From Europe Gain W/w; Diesel Flows Return
*Rotterdam 3.5% INDIC*
Oct21 399.50 / 401.50
Nov21 394.25 / 396.25
Dec21 389.50 / 391.50
Jan22 386.25 / 388.25
Feb22 383.75 / 385.75
Mar22 381.25 / 383.25
Q4-21 394.50 / 396.50
Q1-22 383.75 / 385.75
Q2-22 375.75 / 377.75
Q3-22 366.50 / 369.50
CAL22 368.75 / 374.75
*Singapore 380 INDIC*
Oct21 425.00 / 427.00
Nov21 414.25 / 416.25
Dec21 408.25 / 410.25
Jan22 404.00 / 406.00
Feb22 401.00 / 403.00
Mar22 398.00 / 400.00
Q4-21 416.00 / 418.00
Q1-22 401.00 / 403.00
Q2-22 392.75 / 394.75
Q3-22 384.25 / 387.25
CAL22 386.75 / 392.75
*Rott VLSFO 0.5% INDIC*
Oct21 513.50 / 518.50
Nov21 510.75 / 515.75
Dec21 507.75 / 512.75
Jan22 504.75 / 509.75
Feb22 501.75 / 506.75
Mar22 498.75 / 503.75
Q4-21 510.75 / 515.75
Q1-22 501.75 / 506.75
Q2-22 492.75 / 498.75
Q3-22 484.25 / 492.25
CAL22 488.25 / 496.25
*Sing VLSFO 0.5% INDIC*
Oct21 537.50 / 542.50
Nov21 532.75 / 537.75
Dec21 528.50 / 533.50
Jan22 525.00 / 530.00
Feb22 522.00 / 527.00
Mar22 519.00 / 524.00
Q4-21 533.00 / 538.00
Q1-22 522.00 / 527.00
Q2-22 513.00 / 519.00
Q3-22 504.50 / 512.50
CAL22 508.50 / 516.50
*Sing 10ppm GO INDIC*
Oct21 82.08 / 82.22
Nov21 81.52 / 81.72
Dec21 80.98 / 81.18
Jan22 80.56 / 80.76
Feb22 80.23 / 80.43
Mar22 79.92 / 80.12
Q4-21 81.45 / 81.75
Q1-22 80.19 / 80.49
Q2-22 79.35 / 79.65
Q3-22 78.57 / 78.87
CAL22 78.62 / 79.02
*ICE Gasoil 10ppm INDIC*
Oct21 623.26 / 627.26
Nov21 619.13 / 623.13
Dec21 615.07 / 619.07
Jan22 611.96 / 615.96
Feb22 608.94 / 612.94
Mar22 605.64 / 609.64
Q4-21 619.15 / 623.15
Q1-22 608.85 / 612.85
Q2-22 601.01 / 605.01
Q3-22 596.51 / 600.51
CAL22 599.60 / 603.60
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