FIS Fuel Oil Morning Report 21/10/2021

Brent crude futures settled at $85.82 a barrel, a gain of 0.9% or 74 cents and the highest since October 2018. November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, settled at $83.87, up 91 cents, or 1.1%. The more active WTI contract for December settled up 98 cents to $83.42 a barrel.

 

EIA week ending 10/15

Crude oil: -0.4M

Gasoline: -5.4M

Distillates: -3.9M

Refiner utilz: 84.7%

Impld mogas demand: 9.63Mbpd

 

Even after hitting the highest levels in several years in recent days, oil prices have further room to rise this winter. At least short-term market fundamentals suggest so, analysts say.  Inventories around the world have fallen to below the pre-pandemic five-year average as stocks are depleting, with demand bouncing back amid a weaker supply response from producers. The energy crunch in Europe and Asia and record-high natural gas and coal prices add more arguments to the bullish case for oil in coming months as a switch from gas to oil products such as fuel oil and diesel, especially in Asia, is already underway. (Oilprice.com)

 

OPEC and its allies do not see any crude oil shortages in the market, Saudi energy minister Prince Abdulaziz bin Salman said Oct. 20, dismissing calls from consuming countries to increase supplies to tame rising prices. “For the first time, we see our role limited,” Prince Abdulaziz said at the India Energy Forum. “The issue is not the lack of crude oil. Even if we supply it, … where are the refineries that will convert it?” Dated Brent prices have more than doubled in the last year, with S&P Global Platts assessing the benchmark at $85.03/b on Oct. 19. (S&P Global Platts)

 

OPEC+ members are in the midst of an agreement to increase crude production by 400,000 b/d every month, but key customers, including India, the US and Japan, have complained that the alliance is still holding back too much supply. The OPEC+ alliance is next scheduled to meet Nov. 4 to review production plans for December. Earlier at the conference, Indian petroleum minister Shri Hardeep Singh Puri said he hoped OPEC+ would “factor in the sentiments” of consuming countries. (S&P Global Platts)

 

 

OIL MARKET ROUND-UP: (Bloomberg)
* No Relief at the Pump in Sight With U.S. Gasoline Demand Surging
* Global Energy Crisis Draws Oil From Key U.S. Storage Hub: Chart
* Ethanol Output Back to Pre-Covid Level in U.S. on Demand Jump
* Large Gasoline Draw Leaves Inventories At Lowest Since Nov. 2019
* CHINA OIL DATA WRAP: Apparent Demand Falls; Crude Imports Drop
* Oil Barometers: WTI Dec.-Dec. Touches $10; Premium to Dubai

 

 

Rotterdam 3.5% INDIC                                 

Nov21   461.00   /             463.00

Dec21    458.25   /             460.25

Jan22     455.50   /             457.50

Feb22    452.50   /             454.50

Mar22   449.25   /             451.25

Apr22    446.00   /             448.00

Q1-22    452.50   /             454.50

Q2-22    442.50   /             444.50

Q3-22    431.25   /             433.25

Q4-22    418.75   /             421.75

CAL22    434.50   /             440.50

CAL23    394.00   /              402.00

 

Singapore 380 INDIC                                     

Nov21   477.25   /             479.25

Dec21    475.25   /              477.25

Jan22     472.75   /             474.75

Feb22    469.75   /             471.75

Mar22   466.75   /             468.75

Apr22    463.75   /             465.75

Q1-22    469.75   /             471.75

Q2-22    460.50   /             462.50

Q3-22    451.00   /             453.00

Q4-22    441.50   /             444.50

CAL22    453.75   /             459.75

CAL23    417.25   /             425.25

 

Rott VLSFO 0.5% INDIC                                 

Nov21   583.25   /              588.25

Dec21    578.00   /              583.00

Jan22     573.75   /              578.75

Feb22    569.75   /              574.75

Mar22   565.75   /              570.75

Apr22    561.75   /              566.75

Q1-22    569.75   /              574.75

Q2-22    557.75   /              562.75

Q3-22    545.75   /              551.75

Q4-22    533.50   /              541.50

CAL22    550.75   /              558.75

CAL23    503.00   /              519.00

 

Sing VLSFO 0.5% INDIC                                 

Nov21   603.25   /              608.25

Dec21    598.75   /              603.75

Jan22     594.25   /              599.25

Feb22    590.00   /              595.00

Mar22   585.75   /              590.75

Apr22    581.50   /              586.50

Q1-22    590.00   /              595.00

Q2-22    577.50   /              582.50

Q3-22    565.00   /              571.00

Q4-22    552.75   /              560.75

CAL22    570.25   /              578.25

CAL23    525.25   /              541.25

 

Sing 10ppm GO INDIC                                   

Nov21   96.92     /              97.06

Dec21    95.87     /              96.07

Jan22     94.99     /              95.19

Feb22    94.19     /              94.39

Mar22   93.40     /              93.60

Apr22    92.66     /              92.86

Q1-22    94.15     /              94.45

Q2-22    91.92     /              92.22

Q3-22    89.94     /              90.24

Q4-22    88.41     /              88.71

CAL22    89.85     /              90.25

CAL23    90.85     /              91.25

 

ICE Gasoil 10ppm INDIC                               

Nov21   732.04   /              736.04

Dec21    725.74   /              729.74

Jan22     719.28   /              723.28

Feb22    712.74   /              716.74

Mar22   705.85   /              709.85

Apr22    699.23   /              703.23

Q1-22    712.60   /              716.60

Q2-22    694.69   /              698.69

Q3-22    682.35   /              686.35

Q4-22    671.63   /              675.63

CAL22    688.38   /              692.38

CAL23    647.63   /              651.63

 

 

 

 

 

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