U.S. West Texas Intermediate (WTI) crude futures fell 33 cents, or 0.62%, to $52.52 a barrel at 0452 GMT, erasing Wednesday’s gain. Brent crude futures fell 36 cents, or 0.65%, to $55.45 a barrel before softening to lows of $55.31 by 0710GMT, after losing 10 cents on Wednesday.
EIA week ending 1/22
Crude oil: -9.9M
Gasoline: +2.5M
Distillates: -0.8M
Refiner utilz: 81.7%
Impld mogas demand: 7.83Mbpd
Oil markets were supported this week as there was a much greater than expected fall in oil stocks in the US at around 10 million barrels. Distillate stocks also recorded a draw but gasoline stocks were up 2.5 million barrels in the week ending 22nd January.
In the European fuel oil market, 0.5%S marine fuel has garnered support in recent weeks from strong demand from the East, while domestic demand has remained weak, market sources said Jan. 27. The demand pull from the East came as the European market continues to see limited domestic availability due to reduced runs at refineries in light of the ongoing coronavirus pandemic. Singapore was expected to receive about 2 million-2.5 million mt of VLSFO from the West in February, up from the 2 million mt estimated to arrive in January, fuel oil traders said. Traders attributed the increase in inflow to an Asian market supported by a rise in demand from North Asian power utilities. (S&P Global Platts)
In early January when a cold snap hit North Asia, power utilities in Japan ramped up their buying to secure the fuel. South Korea’s East West Power also increased its fuel oil intake as the government had decided to shut some coal power plants to prevent air pollution. Fuel oil exports from Fujairah soared to 4.046 million barrels in the week of Jan. 18, the most since September 2019, according to Kpler. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 324.92
* Rott 3.5%: 311.21
* Sing 0.5%: 426.83
* Rott 0.5%: 400.01
MARKETS NEWS:
* OPEC Sees Demand Growth Ahead, But Stands Ready to Act: Barkindo
* Oil allocations: Adnoc to Cut March Murban, Upper Zakum by 15%
* Russia to Export 27 Cargoes of ESPO Crude in March: Program
* Biden Drilling Ban Leaves Majority of U.S. Production Untouched
* U.S. Crude Oil Inventories Fall By Most Since July
* Banning Drilling in The U.S. Will Boost Oil Imports: Shell CEO
OTHER NEWS:
* Chevron, Reliance Meet With U.S. Officials to Discuss Venezuela
* VAALCO Energy Hedges Portion of Oil Production Against Brent
* Exxon Maintains Dividend as Oil Rally Expected to Boost Cash
* Shale Driller Chesapeake Targeting Net-Zero Emissions by 2035
* Biden’s Early Climate Blitz Goes Faster, Further Than Expected
* Biden Ban on Oil, Gas Leasing on U.S. Lands Challenged in Court
OIL PRODUCT NEWS:
* U.S.: L.A. Traffic Eases, Exxon Joliet Turnaround
* EUROPE: Shipments to Americas Slump; BP Buys Diesel
* ASIA: LG Chem Buys Naphtha; OPEC Positive on 2021
ECONOMIC DATA/EVENTS: (Times are London.)
* North Sea crude-loading programs for March start to emerge this day, including Norwegian and BFOET grades
* Insights Global weekly oil product inventory data for Europe’s ARA region
* Singapore onshore oil-product stockpile weekly data
* Russian weekly refinery outage data from ministry
* EARNINGS: Valero Energy Corp., Murphy Oil, PTT Exploration and Production
ANALYST VIEWS/COLUMNS:
* Citi Sees Iran Starting Year as Biggest Wildcard for Oil Prices
* Brent Oil May Exceed $70/B by Year-End on Tight Supply: JPMorgan
* Oil Liquids Demand to Climb in 2021 on Vaccine Rollout: WoodMac
* Oil Sands Output Set to Grow Despite Keystone XL Demise: TD
*Rotterdam 3.5% INDIC*
Feb21 309.25 / 311.25
Mar21 309.25 / 311.25
Apr21 307.25 / 309.25
May21 304.25 / 306.25
Jun21 300.75 / 302.75
Jul21 297.00 / 299.00
Q2-21 304.00 / 306.00
Q3-21 293.25 / 295.25
Q4-21 282.00 / 284.00
Q1-22 275.00 / 278.00
CAL22 270.00 / 276.00
*Singapore 380 INDIC*
Feb21 323.75 / 325.75
Mar21 323.25 / 325.25
Apr21 321.00 / 323.00
May21 318.50 / 320.50
Jun21 315.75 / 317.75
Jul21 313.00 / 315.00
Q2-21 318.25 / 320.25
Q3-21 310.00 / 312.00
Q4-21 301.50 / 303.50
Q1-22 295.00 / 298.00
CAL22 291.00 / 297.00
*Rott VLSFO 0.5% INDIC*
Feb21 401.25 / 406.25
Mar21 399.00 / 404.00
Apr21 396.75 / 401.75
May21 394.75 / 399.75
Jun21 392.75 / 397.75
Jul21 390.75 / 395.75
Q2-21 394.75 / 399.75
Q3-21 389.00 / 394.00
Q4-21 383.25 / 389.25
Q1-22 380.25 / 388.25
CAL22 379.00 / 387.00
*Singapore VLSFO 0.5% INDIC*
Feb21 425.00 / 430.00
Mar21 421.75 / 426.75
Apr21 419.25 / 424.25
May21 416.75 / 421.75
Jun21 414.75 / 419.75
Jul21 412.75 / 417.75
Q2-21 416.75 / 421.75
Q3-21 411.00 / 416.00
Q4-21 406.25 / 412.25
Q1-22 401.50 / 409.50
CAL22 401.00 / 409.00
*Sing 10ppm GO INDIC*
Feb21 60.43 / 60.57
Mar21 60.53 / 60.73
Apr21 60.58 / 60.78
May21 60.58 / 60.78
Jun21 60.57 / 60.77
Jul21 60.61 / 60.81
Q2-21 60.50 / 60.80
Q3-21 60.57 / 60.87
Q4-21 60.48 / 60.78
Q1-22 60.72 / 61.02
CAL22 61.24 / 61.64
*ICE Gasoil 10ppm INDIC*
Feb21 451.20 / 453.20
Mar21 452.75 / 454.75
Apr21 453.43 / 455.43
May21 453.87 / 455.87
Jun21 454.45 / 456.45
Jul21 455.21 / 457.21
Q2-21 453.90 / 455.90
Q3-21 455.85 / 457.85
Q4-21 456.09 / 458.09
Q1-22 461.42 / 463.42
CAL22 460.81 / 462.81
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