Brent crude futures fell 7 cents, or 0.1%, to $78.24 a barrel at 0415 GMT, but were still heading for a small rise on the week, marking a fourth straight week of gains. U.S. West Texas Intermediate (WTI) crude futures slipped 6 cents to $74.97 a barrel, though the contract remained on track to post a sixth consecutive week of rises.
All eyes are now on a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together known as OPEC+, on Monday, where producers will discuss whether to go beyond their existing deal to boost production by 400,000 barrels per day (bpd) in November and December. Four OPEC+ sources said adding more oil was being looked at as a scenario, without giving details on volumes or dates, against a backdrop of oil hovering near a three-year high and pressure from consumers for more supply. (Reuters)
Strength in the gas market continues to be supportive for oil prices. Spot Asian LNG is trading at an oil equivalent of around US$177/bbl and so there is a clear incentive for gas-to-oil switching. As we have mentioned in previous notes, this switching is something that we are already seeing in the power generation sector, particularly in markets such as Pakistan and Bangladesh. This suggests that we should see stronger oil demand in the coming months, which means a tighter than expected oil market through until the end of the year. (ING)
Strong South Asian support for HSFO likely to ease. European fuel oil markets continued to find support Sept. 30, as market players turned to low sulphur fuel oil to meet utility demand amid rising gas prices. While LSFO can be used for power generation in Europe, both it and 3.5%S fuel oil can find their way into power generation in Asia. But of all the types of fuel oil, including 0.5%S. LSFO has seen the most marked price increases in the high gas price environment. (S&P Global Platts)
OIL MARKET ROUND-UP:
* Someone Is Betting That Oil Will Soar to a Record $200 a Barrel
* Singapore’s Fuel Oil Inventories At 2-Year Low Amid Power Crunch
* Global Energy Crunch Cascades into U.S. Diesel Market
* Shippers Want a Carbon Tax So Everyone Pays to Go Green
* Saudi Aramco Boosts Propane, Butane Prices to Highest Since 2014
Rotterdam 3.5% INDIC
Nov21 426.25 / 428.25
Dec21 421.00 / 423.00
Jan22 417.25 / 419.25
Feb22 414.25 / 416.25
Mar22 411.00 / 413.00
Apr22 407.75 / 409.75
Q1-22 414.00 / 416.00
Q2-22 404.50 / 406.50
Q3-22 394.00 / 396.00
Q4-22 382.25 / 385.25
CAL22 398.25 / 401.25
Singapore 380 INDIC
Nov21 448.50 / 450.50
Dec21 442.00 / 444.00
Jan22 437.25 / 439.25
Feb22 433.75 / 435.75
Mar22 430.50 / 432.50
Apr22 427.25 / 429.25
Q1-22 434.00 / 436.00
Q2-22 424.00 / 426.00
Q3-22 414.50 / 416.50
Q4-22 405.00 / 408.00
CAL22 419.00 / 422.00
Rott VLSFO 0.5% INDIC
Nov21 525.25 / 530.25
Dec21 522.50 / 527.50
Jan22 519.75 / 524.75
Feb22 517.00 / 522.00
Mar22 514.25 / 519.25
Apr22 511.50 / 516.50
Q1-22 517.00 / 522.00
Q2-22 508.50 / 513.50
Q3-22 499.00 / 505.00
Q4-22 490.00 / 496.00
CAL22 503.50 / 509.50
Singapore VLSFO 0.5% INDIC
Nov21 546.75 / 551.75
Dec21 544.25 / 549.25
Jan22 541.50 / 546.50
Feb22 538.75 / 543.75
Mar22 536.00 / 541.00
Apr22 533.00 / 538.00
Q1-22 538.75 / 543.75
Q2-22 530.00 / 535.00
Q3-22 520.50 / 526.50
Q4-22 512.00 / 518.00
CAL22 525.25 / 531.25
Sing 10ppm GO INDIC
Nov21 87.92 / 88.06
Dec21 87.34 / 87.54
Jan22 86.71 / 86.91
Feb22 86.19 / 86.39
Mar22 85.75 / 85.95
Apr22 85.39 / 85.59
Q1-22 86.20 / 86.40
Q2-22 85.03 / 85.23
Q3-22 83.95 / 84.15
Q4-22 82.79 / 82.99
CAL22 84.40 / 84.80
Ice Gasoil Swap
Nov21 666.40 / 668.40
Dec21 662.58 / 664.58
Jan22 658.57 / 660.57
Feb22 653.88 / 656.88
Mar22 649.43 / 652.43
Apr22 644.68 / 647.68
Q1-22 653.80 / 656.80
Q2-22 642.44 / 645.44
Q3-22 634.26 / 637.26
Q4-22 629.28 / 632.28
CAL22 639.94 / 642.94
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