Brent crude was down 15 cents, or 0.2%, at $64.83 a barrel by 0615 GMT, after gaining 0.6% on Monday. U.S. oil was down 1 cent at $61.55 a barrel, having fallen 1% in the previous session.
Shipping in the Suez Canal resumed late on Monday night after the vessel Ever Given was removed after 6 days of being lodged between the two banks of the canal. The resumption of the shipping route was welcome news for the queue of over 400 vessels waiting to pass through the vital shipping lane. 30,000 cubic meters of sand was needed to be dredged from the area, in order to facilitate the refloating of the 224,000-ton container ship. There are estimates that the backlog could take weeks to clear according to various sources, but the Canal authorities are looking to waste no time in clearing the build-up with accelerated crossings. (Reuters)
Oil prices gained slightly on Monday after the market expects output to be held steady by OPEC+ after the fragilities seen earlier in the month with oil falling to below $61 per barrel after hitting highs of over $70 at the beginning of the month. The decision on output due on the 1st April is expected to be similar to that of the one in early March, with slight increases in line with seasonal demand. Discussions will continue with regards to the roadmap of members production quotas, with how best to navigate supply though a critical time in the recovery of global economies from the pandemic, with the real risk of virus resurgence that will undoubtedly affect demand for oil and products.
High sulphur fuel oil demand from power plants in Bangladesh is expected to rise in April, gaining momentum as temperatures in the subcontinent rise, with HSFO imports likely to reach around 400,000 mt, from 350,000 mt in March. Looking ahead, the market expects a gradual decline in HSFO cracks to continue, according to the swaps market. At the end of last week, HSFO cracks were expected to fall to $10/b below Brent in November. In March, the 0.5%-HSFO (or the ‘Hi5’) spread for Northwest Europe has averaged more than $100/mt. That compares with about $109/mt in February, Platts data showed. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 381.53
* Rott 3.5%: 366.64
* Sing 0.5%: 490.28
* Rott 0.5%: 470.60
OIL MARKET ROUND-UP:
* Suez Canal Reopens to Traffic After Ship Is Finally Pulled Free
* Ships Start to Move in Canal After Ever Given Freed: Suez Update
* Brazil Exports 1st Cargo of Medium Sweet Atapu Crude to China
* Jet Fuel’s Rebound on Spring Break Travel Gives Refiners Hope
* Oil Supertanker Earnings Reach 2 1/2-Month High; WAF Rates Jump
*Rotterdam 3.5% INDIC*
Apr21 355.25 / 357.25
May21 354.00 / 356.00
Jun21 351.00 / 353.00
Jul21 347.25 / 349.25
Aug21 342.75 / 344.75
Sep21 337.25 / 339.25
Q2-21 353.25 / 355.25
Q3-21 342.25 / 344.25
Q4-21 326.50 / 328.50
Q1-22 317.75 / 320.75
CAL22 308.00 / 314.00
*Singapore 380 INDIC*
Apr21 368.50 / 370.50
May21 366.75 / 368.75
Jun21 364.25 / 366.25
Jul21 361.50 / 363.50
Aug21 358.25 / 360.25
Sep21 354.25 / 356.25
Q2-21 366.50 / 368.50
Q3-21 358.00 / 360.00
Q4-21 346.25 / 348.25
Q1-22 339.00 / 342.00
CAL22 329.75 / 335.75
*Rott VLSFO 0.5% INDIC*
Apr21 449.25 / 454.25
May21 448.75 / 453.75
Jun21 448.25 / 453.25
Jul21 447.75 / 452.75
Aug21 447.00 / 452.00
Sep21 446.25 / 451.25
Q2-21 448.75 / 453.75
Q3-21 447.00 / 452.00
Q4-21 443.75 / 449.75
Q1-22 439.75 / 447.75
CAL22 435.25 / 443.25
*Sing VLSFO 0.5% INDIC*
Apr21 470.25 / 475.25
May21 469.75 / 474.75
Jun21 469.25 / 474.25
Jul21 468.50 / 473.50
Aug21 467.75 / 472.75
Sep21 467.00 / 472.00
Q2-21 469.75 / 474.75
Q3-21 467.75 / 472.75
Q4-21 465.00 / 471.00
Q1-22 461.00 / 469.00
CAL22 456.50 / 464.50
*Sing 10ppm GO INDIC*
Apr21 67.86 / 68.00
May21 68.02 / 68.22
Jun21 68.17 / 68.37
Jul21 68.26 / 68.46
Aug21 68.30 / 68.50
Sep21 68.32 / 68.52
Q2-21 67.95 / 68.25
Q3-21 68.25 / 68.55
Q4-21 68.10 / 68.40
Q1-22 67.92 / 68.22
CAL22 67.70 / 68.10
*ICE Gasoil 10ppm INDIC*
Apr21 509.26 / 513.26
May21 511.34 / 515.34
Jun21 512.79 / 516.79
Jul21 514.02 / 518.02
Aug21 514.97 / 518.97
Sep21 515.73 / 519.73
Q2-21 511.15 / 515.15
Q3-21 514.91 / 518.91
Q4-21 514.88 / 518.88
Q1-22 512.33 / 516.33
CAL22 509.60 / 513.60
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