U.S. West Texas Intermediate (WTI) crude futures dropped 72 cents, or 1.1%, to $62.81 a barrel at 0516 GMT, giving up all of Thursday’s gains. Brent crude futures for April, which expires on Friday, fell 63 cents, or 0.9%, to $66.25 a barrel, following a 16-cent loss on Thursday. The more active May contract was down 77 cents, or 1.2%, to $65.34 a barrel.
A stronger dollar lead by the small collapse in bonds overnight weighed in on commodity prices as oil fell of from 13-month highs, retreating back to $66.12 per barrel by 0715GMT this morning. Despite the drop in prices overnight, both Brent and WTI will be on track for 20% gains for the month as Saudi Cuts and Vaccine rollouts help buoy the oil markets in the hope of a speedy recover out of the pandemic. These factors, coupled with supply disruptions in the US meant that oil broke through Goldman Sachs $65 estimate for brent a lot earlier than expected, with the bank revising up its forecast.
Focus continues on the OPEC meeting that is scheduled for next Thursday, as producers will be waiting with bated breath for the outcome of the next round of production cuts. These high levels are a pivotal point as it is at these levels where oil becomes profitable which tends to increase supply levels in the market. There is some speculation that brent could hit $100 per barrel at some point this year as we come out of the COVID-19 pandemic. (OilPrice.com)
KEY MARKETS UPDATES:
* Oil Breaks Out From Covid Woes in Best Ever Start to Year
* North Sea Oil Field Work to Cut Supply From Already Tight Market
* ICE Sent Letter to Platts Cautioning on Speedy Brent Oil Revamp
* Nigeria to Boost Bonny Light Crude Exports to 227k B/D in April
* Canada’s Synthetic Crude Prices Surge Before Upgrader Shutdowns
OTHER NEWS:
* Fired Petrobras CEO Says Price Spat Unnerved Refinery Buyers
* Greek Oil Refiner Hellenic Petroleum Sees Demand Improving in 2Q
* Big U.S. Banks’ Vows to Halt Job Cuts Are Over as Virus Endures
OIL PRODUCT NEWS:
* U.S.: Exxon and Total Refineries Prepare to Restart
* EUROPE: Russian Refining Appears to Dip; Arb Flows
* ASIA: China Diesel Exports Up; Singapore Stockpiles
* EUROPE: Feyzin FCC; Diesel From U.S.
ECONOMIC DATA: (Times are London.)
* 7:30am: Shanghai exchange weekly commodities inventory
* 5pm: EIA issues Petroleum Supply Monthly to be released
* 6pm: Baker Hughes weekly rig count
* 6:30pm: ICE Brent weekly commitment of traders
* 8:30pm: CFTC weekly commitment of traders data
* EARNINGS: Seadrill Ltd.
Singapore 380 INDIC
Mar21 375.75 / 377.75
Apr21 373.25 / 375.25
May21 370.50 / 372.50
Jun21 367.00 / 369.00
Jul21 363.25 / 365.25
Aug21 359.25 / 361.25
Q2-21 370.25 / 372.25
Q3-21 359.00 / 361.00
Q4-21 347.00 / 349.00
Q1-22 339.50 / 342.50
CAL22 331.75 / 337.75
Rotterdam 3.5% INDIC
Mar21 365.00 / 367.00
Apr21 360.50 / 362.50
May21 356.25 / 358.25
Jun21 351.50 / 353.50
Jul21 346.50 / 348.50
Aug21 341.50 / 343.50
Q2-21 356.00 / 358.00
Q3-21 335.75 / 337.75
Q4-21 322.25 / 324.25
Q1-22 317.50 / 320.50
CAL22 311.00 / 317.00
Singapore VLSFO 0.5% INDIC
Mar21 501.00 / 506.00
Apr21 497.00 / 502.00
May21 493.75 / 498.75
Jun21 491.00 / 496.00
Jul21 488.25 / 493.25
Aug21 485.50 / 490.50
Q2-21 494.00 / 499.00
Q3-21 485.50 / 490.50
Q4-21 477.00 / 483.00
Q1-22 469.25 / 475.25
CAL22 460.25 / 466.25
Rott VLSFO 0.5% INDIC
Mar21 476.25 / 481.25
Apr21 473.50 / 478.50
May21 470.75 / 475.75
Jun21 468.00 / 473.00
Jul21 465.00 / 470.00
Aug21 462.00 / 467.00
Q2-21 470.75 / 475.75
Q3-21 462.00 / 467.00
Q4-21 452.50 / 458.50
Q1-22 445.75 / 451.75
CAL22 434.75 / 440.75
Sing 10ppm GO INDIC
Mar21 71.45 / 71.59
Apr21 71.34 / 71.54
May21 71.18 / 71.38
Jun21 70.99 / 71.19
Jul21 70.79 / 70.99
Aug21 70.59 / 70.79
Q2-21 71.10 / 71.40
Q3-21 70.54 / 70.84
Q4-21 69.93 / 70.23
Q1-22 69.22 / 69.52
CAL22 68.60 / 69.00
ICE Gasoil 10ppm INDIC
Mar21 535.08 / 537.08
Apr21 535.46 / 537.46
May21 534.88 / 536.88
Jun21 533.79 / 535.79
Jul21 532.78 / 534.78
Aug21 532.16 / 534.16
Q2-21 534.70 / 536.70
Q3-21 532.31 / 534.31
Q4-21 529.03 / 531.03
Q1-22 527.89 / 529.89
CAL22 524.03 / 526.03
Rott Hi5 Sing Hi5
Mar21 112 127
Apr21 114 125
May21 116 125
Jun21 118 126
Jul21 120 127
Aug21 122 128
Q2-21 116 125
Q3-21 127 128
Q4-21 132 132
Q1-22 130 131
CAL22 124 129
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