At 10:18 am Singapore time (0218 GMT), the ICE August Brent futures contract inched slightly lower by 3 cents/b (0.04%) from the previous settle at $76.15/b, while the NYMEX August light sweet crude contract dipped 3 cents/b (0.04%) at $74.05/b.
Crude prices are hovering at their highest levels since October 2018 as the demand complex for oil continues to improve on increased vaccine rollouts leading to increased travel on land, air and sea. the OPEC+ group will also be meeting on the first of July as the market expects output cuts to be relaxed to the tune of 500,000 barrels from August.
The OPEC meeting will be eagerly awaited by all but especially India, as their oil minister has expressed concerns as the inflationary pressures that withholding supply has brought. An increase in supply will be needed with cap oil prices in order to support the global recovery from the pandemic. S&P Global Platts Analytics expects that a JCPOA agreement could lead to sanctions relief by September, boosting Iran’s crude and condensate exports to 1.5 million b/d by December from 600,000 b/d in May. (S&P Global Platts)
The International Energy Agency expects the world will need 4.6 million b/d more oil from OPEC in the July-September quarter than the group’s agreed ceiling in July, as the prospect of 500,000 barrel extra supply did not dampen the oil market push as it will only go so far in meeting the step up in demand. (S&P Global Platts)
Oil is up more than 50% this year as a rapid rebound from Covid-19 in major energy markets such as the U.S., Europe and China has led to increased mobility and greater consumption of transport fuels. The recovery has also drained bloated stockpiles, and the International Energy Agency has urged OPEC+ to return more supply to keep markets balanced. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 402.40
* Rott 3.5%: 390.24
* Sing 0.5%: 520.96
* Rott 0.5%: 502.07
OIL MARKET ROUND-UP:
* Oil Survey Reveals a Divide on When Global Demand Will Peak
* U.S. Strikes on Iran-Backed Militias Test Raisi, Nuclear Talks
* Nigeria’s Buhari Concerned About New Threats to Bomb Oil Assets
* Hedge Fund Managers Cut Net Bullish Nymex WTI Crude Oil Bets
* California Roads Add More Cars After Easing of Restrictions
*Rotterdam 3.5% INDIC*
Jul21 409.25 / 411.25
Aug21 407.25 / 409.25
Sep21 404.00 / 406.00
Oct21 400.50 / 402.50
Nov21 397.25 / 399.25
Dec21 394.00 / 396.00
Q3-21 406.75 / 408.75
Q4-21 397.25 / 399.25
Q1-22 389.25 / 391.25
Q2-22 381.25 / 384.25
CAL22 373.00 / 379.00
*Singapore 380 INDIC*
Jul21 421.75 / 423.75
Aug21 420.75 / 422.75
Sep21 418.25 / 420.25
Oct21 415.75 / 417.75
Nov21 413.25 / 415.25
Dec21 410.75 / 412.75
Q3-21 420.25 / 422.25
Q4-21 413.25 / 415.25
Q1-22 405.75 / 407.75
Q2-22 398.50 / 401.50
CAL22 391.50 / 397.50
*Rott VLSFO 0.5% INDIC*
Jul21 519.25 / 524.25
Aug21 517.50 / 522.50
Sep21 516.25 / 521.25
Oct21 515.00 / 520.00
Nov21 513.50 / 518.50
Dec21 511.75 / 516.75
Q3-21 517.75 / 522.75
Q4-21 513.50 / 518.50
Q1-22 507.00 / 513.00
Q2-22 499.00 / 507.00
CAL22 495.25 / 503.25
*Sing VLSFO 0.5% INDIC*
Jul21 537.50 / 542.50
Aug21 537.25 / 542.25
Sep21 536.00 / 541.00
Oct21 534.75 / 539.75
Nov21 533.25 / 538.25
Dec21 531.75 / 536.75
Q3-21 537.00 / 542.00
Q4-21 533.25 / 538.25
Q1-22 527.50 / 533.50
Q2-22 520.25 / 528.25
CAL22 516.50 / 524.50
*Sing 10ppm GO INDIC*
Jul21 80.95 / 81.09
Aug21 80.95 / 81.15
Sep21 80.89 / 81.09
Oct21 80.70 / 80.90
Nov21 80.37 / 80.57
Dec21 80.04 / 80.24
Q3-21 80.85 / 81.15
Q4-21 80.32 / 80.62
Q1-22 79.55 / 79.85
Q2-22 78.81 / 79.11
CAL22 78.26 / 78.66
*ICE Gasoil 10ppm INDIC*
Jul21 607.32 / 611.32
Aug21 608.56 / 612.56
Sep21 609.19 / 613.19
Oct21 608.10 / 612.10
Nov21 605.58 / 609.58
Dec21 603.75 / 607.75
Q3-21 608.35 / 612.35
Q4-21 605.81 / 609.81
Q1-22 601.22 / 605.22
Q2-22 594.29 / 598.29
CAL22 593.63 / 597.63
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Mobile: (+65) 87984987
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