Brent crude futures for September fell 44 cents, or 0.6%, to $73.66 a barrel by 0432 GMT while U.S. Texas Intermediate crude was at $71.62 a barrel, down 45 cents.
Oil spent much of last week clawing back losses, with ICE Brent managing to finish the week almost 8% up from last Monday’s close. The recovery over the week has come despite a growing number of Covid-19 infections, along with a number of countries in Asia extending or tightening restrictions. Clearly where vaccination rates are low there is a concern, however, when looking at regions where a large portion of the population is vaccinated (the UK for example), hospitalization levels are a fraction of what they were back at the start of the year, providing some confidence to the market.
The uptrend in oil demand has raised concerns of a supply deficit in the market, as the supply-side response from US shale producers remains conservative. These concerns come despite the OPEC+ coalition deciding on July 18 to increase its production quotas by 400,000 b/d each month from August. (S&P Global Platts)
The other uncertainty, which is on the supply side is Iran. Noise around the nuclear deal has quietened down more recently, and we will have to wait until the new Iranian president takes office in August before indirect talks resume. The unknown is whether the incoming president takes the same approach towards trying to reach a deal with the US, or if he takes a more hardline stance.
OIL MARKET ROUND-UP:
* Nine Russian Sokol Cargoes to Be Shipped in Sept
* South Korean Gasoline Exports Tumble 20% in June, KNOC Data Show
* ASIA-AMERICAS FUEL: July Shipments Dwindle Due to Cancellations
Sing VLSFO 0.5% INDIC
Aug-21 523.75 / 525.75
Sep-21 521.50 / 523.50
Oct-21 519.25 / 521.25
Nov-21 517.00 / 519.00
Dec-21 514.75 / 516.75
Jan-21 512.50 / 514.50
Q4-21 516.50 / 519.50
Q1-22 510.25 / 512.25
Q2-22 503.00 / 506.00
Q3-22 495.75 / 499.75
CAL22 498.75 / 503.75
Rott VLSFO 0.5% INDIC
Aug-21 504.00 / 506.00
Sep-21 502.25 / 504.25
Oct-21 500.25 / 502.25
Nov-21 498.00 / 500.00
Dec-21 495.75 / 497.75
Jan-21 493.25 / 495.25
Q4-21 497.50 / 500.50
Q1-22 490.75 / 492.75
Q2-22 482.75 / 485.75
Q3-22 475.25 / 479.25
CAL22 478.50 / 483.50
Sing 10ppm GO INDIC
Aug-21 78.93 / 79.05
Sep-21 78.80 / 78.94
Oct-21 78.53 / 78.69
Nov-21 78.13 / 78.31
Dec-21 77.74 / 77.92
Jan-21 77.39 / 77.59
Q4-21 78.15 / 78.33
Q1-22 77.08 / 77.28
Q2-22 76.24 / 76.48
Q3-22 75.72 / 76.02
CAL22 75.99 / 76.29
ICE Gasoil 10ppm INDIC
Aug-21 595.50 / 596.50
Sep-21 596.00 / 597.00
Oct-21 594.50 / 595.50
Nov-21 590.75 / 592.25
Dec-21 587.75 / 589.25
Jan-21 585.75 / 587.25
Q4-21 591.25 / 592.25
Q1-22 583.75 / 585.25
Q2-22 577.00 / 578.50
Q3-22 574.25 / 576.75
CAL22 575.75 / 578.75
Sing 380 cst INDIC
Aug-21 404.00 / 406.00
Sep-21 400.50 / 402.50
Oct-21 396.00 / 398.00
Nov-21 392.75 / 394.75
Dec-21 390.00 / 392.00
Jan-21 387.25 / 389.25
Q4-21 392.50 / 395.00
Q1-22 385.25 / 387.25
Q2-22 379.25 / 381.25
Q3-22 373.00 / 376.00
CAL22 375.25 / 379.25
Rotterdam 3.5% INDIC
Aug-21 391.50 / 393.50
Sep-21 386.75 / 388.75
Oct-21 382.25 / 384.25
Nov-21 378.25 / 380.25
Dec-21 374.50 / 376.50
Jan-21 371.75 / 373.75
Q4-21 378.00 / 380.50
Q1-22 369.75 / 371.75
Q2-22 363.00 / 365.00
Q3-22 355.00 / 358.00
CAL22 358.00 / 362.00
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