At 10:40 am Singapore time (0240 GMT), the ICE November Brent futures contract was down 15 cents/b (0.19%) from the previous close at $77.10/b, while the NYMEX November light sweet crude contract was 20 cents/b (0.27%) lower at $73.10/b.
ANZ research analysts noted that Brent crude oil prices were still at a three-year high above $77/b and that a prolonged recovery from Hurricane Ida disruptions and robust demand were eating into oil stockpiles. Other analysts shared similar sentiment, with IG market strategist saying that recent drawdowns in US crude inventories have added support in the oil market. (S&P Global Platts)
US oil supply remains tight in the wake of Hurricane Ida as operators in the US Gulf of Mexico struggle to return to full production. Around 294,214 b/d or 16.18% of total Gulf production remained shut-in as of Sept. 23, according to the Bureau of Safety and Environmental Enforcement. Despite the proportion of offline production easing from a week earlier, full recovery in the near term was unlikely due to damage to pipeline infrastructure. (S&P Global Platts)
Recovering global oil demand could send oil prices to $100 a barrel at some point at the end of 2022, despite COVID challenges to demand this coming winter, according to one of the world’s largest independent oil traders, Trafigura. “Not just the price, but the level of backwardation we are seeing is telling us the market is hungry for oil,” Saad Rahim, chief economist at Trafigura, said during the virtual Argus Asia-Pacific Crude Forum on Thursday, as carried by Argus. Oil demand worldwide has recovered enough from the coronavirus and the variants this year to put the oil market in a “much healthier place,” Rahim said. We could see $100 oil next year, probably at the back end, “if conditions are right,” Trafigura’s chief economist said at the Argus forum. (Oilprice.com)
OIL MARKET ROUND-UP:
* China Sells Oil From Strategic Reserves to PetroChina, Hengli
* OPEC Sees Risk of Tighter Oil Market Amid Natural Gas Crisis
* Russia Can’t Ease Europe’s Gas Crunch in Time for the Cold
* Ida’s Oil Destruction Lingers With 30 Million Barrels Gone
* Chevron Restores Full Output at 4 U.S. Gulf Platforms After Ida
* Brent Crude Flashes Overbought After Rally to 2018-High: Chart
* BP, Tesco See U.K. Fuel Deliveries Curbed by Driver Shortage
* ARA Gasoil Stockpiles Plunge to 17-Month Low on Demand: IG
* No Fuel Shortage in U.K., People Should Buy as Normal: Spokesman
Singapore 380 INDIC
Oct21 452.25 / 454.25
Nov21 442.75 / 444.75
Dec21 435.25 / 437.25
Jan22 429.75 / 431.75
Feb22 425.75 / 427.75
Mar22 421.75 / 423.75
Q4-21 443.50 / 445.50
Q1-22 425.75 / 427.75
Q2-22 414.00 / 416.00
Q3-22 402.75 / 405.75
CAL22 406.75 / 409.75
Rotterdam 3.5% INDIC
Oct21 424.75 / 426.75
Nov21 418.75 / 420.75
Dec21 413.25 / 415.25
Jan22 409.00 / 411.00
Feb22 405.50 / 407.50
Mar22 402.00 / 404.00
Q4-21 419.00 / 421.00
Q1-22 405.50 / 407.50
Q2-22 394.75 / 396.75
Q3-22 382.50 / 385.50
CAL22 388.75 / 391.75
Singapore VLSFO 0.5% INDIC
Oct21 548.25 / 553.25
Nov21 545.50 / 550.50
Dec21 542.50 / 547.50
Jan22 539.50 / 544.50
Feb22 536.25 / 541.25
Mar22 533.25 / 538.25
Q4-21 545.50 / 550.50
Q1-22 536.50 / 541.50
Q2-22 527.00 / 533.00
Q3-22 518.75 / 524.75
CAL22 523.25 / 529.25
Rott VLSFO 0.5% INDIC
Oct21 526.25 / 531.25
Nov21 523.25 / 528.25
Dec21 520.25 / 525.25
Jan22 517.00 / 522.00
Feb22 513.75 / 518.75
Mar22 510.50 / 515.50
Q4-21 523.25 / 528.25
Q1-22 513.75 / 518.75
Q2-22 504.00 / 510.00
Q3-22 495.50 / 501.50
CAL22 500.00 / 506.00
Sing 10ppm GO INDIC
Oct21 85.75 / 85.89
Nov21 85.16 / 85.36
Dec21 84.51 / 84.71
Jan22 83.93 / 84.13
Feb22 83.43 / 83.63
Mar22 83.00 / 83.20
Q4-21 85.15 / 85.35
Q1-22 83.45 / 83.65
Q2-22 82.35 / 82.55
Q3-22 81.39 / 81.59
CAL22 81.79 / 82.19
Ice Gasoil Swap
Oct21 650.85 / 652.85
Nov21 646.71 / 648.71
Dec21 642.09 / 644.09
Jan22 637.94 / 639.94
Feb22 633.95 / 635.95
Mar22 629.86 / 631.86
Q4-21 646.55 / 648.55
Q1-22 633.92 / 635.92
Q2-22 624.04 / 626.04
Q3-22 616.22 / 618.22
CAL22 620.12 / 623.12
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