Brent crude was up 76 cents, or 1.2%, at $63.67 a barrel by 0104 GMT before tapering off slightly into the European morning session to print $63.53 by 0730GMT, after gaining nearly 1% last week. U.S. oil rose 74 cents, or 1.3%, to $59.98 a barrel, having fallen 0.4% last week.
Investment bank Goldman Sachs raised its forecast for Brent by $10, helping to boost the market, with expectations for Brent to reach $70 by the second quarter and $75 in the third quarter. This comes as demand pick up from the Covid-19 fallout as well as supply disruptions in the US as a result of the freezing weather that is slowly clearing. It is estimated that 4 million barrels of oil were shut in each day because of operation failures due to the freezing weather. (Reuters)
OPEC have cut their forecast of US shale production by 140,000 barrels per day in 2021 as the freezing weather in Key oil states such as Texas which is home to 40% of US shale struggles with the inclement weather. Sources at OPEC are positive that this will allow for the group to better manage prices as the recovery from the pandemic starts. The Group are due to meet on 4th March with the goal of establishing the roadmap out of the pandemic in terms of price stability and supply, a key issue with Saudi Arabia looking to increase production after its 1 million barrel a day voluntary cuts in both February and March.
Concerning the fuel market, it is possible that we may see a pick-up in VLSFO sales as ship owners and charterers return after a period of celebration of the Lunar New Year, with disruptions in supply in Japan could last into march as the Earthquake in the region has knocked out some supply in the region. (S&P Global Platts)
MARKETS NEWS:
* Saudis, Russia Differ Again on Oil Strategy Before OPEC+ Meeting
* Iraq Freezes Oil for Pre-Payment Deal for Now, Oil Minister Says
* Iran to Attend OPEC+ Committee Meeting Next Month, Delegate Says
* PTT Buys Banoco Arab Medium Crude for April at 20C-30C Discount
* ASIA-AMERICAS FUEL: Feb. Flows Set to Be Highest in Four Months
* The Two Hours That Nearly Destroyed Texas’s Electric Grid
* Gas Stations Still Dark as Texas Emerges From Freeze
OTHER NEWS:
* U.S. Says ‘Ball in Iran’s Court’ on Reviving Nuclear Deal
* Days Before Blackouts, One Texas Power Giant Sounded The Alarm
* Kerry Vows Aggressive Climate Steps as U.S. Rejoins Paris
OIL PRODUCT NEWS:
* U.S.: Texas Fuel Stations Go Dark in Power Crisis
* EUROPE: Diesel VLCC Leaves Rotterdam; Crack Jumps
* ASIA: Lotte Chem Buys Naphtha; Troubled Trader
ECONOMIC DATA/EVENTS: (Times are London.)
* 8:30am: S&P Global Platts Virtual London Energy Forum 2021
* More Nigerian crude loading programs for April likely to emerge this week
* EARNINGS: Occidental Petroleum, Galp Energia, Marathon Oil Corp., Transocean, Diamondback Energy, CVR Energy, Sasol
* HOLIDAY: Russia
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