The Brent crude futures for September fell 24 cents, or 0.6%, to $41.61 a barrel by 0610 GMT, paring Monday’s 92 cent gain. The August contract, which expires on Tuesday, fell 24 cents to $41.47. U.S. crude was down 33 cents, or 0.8% at $39.37 a barrel. A Reuters poll showed analysts expect U.S. crude oil stockpiles fell from record highs last week and gasoline inventories decreased for a third straight week. The API will release their data predicting the situation later tonight before the EIA confirms this at 3.30pm UK time tomorrow. Strong growth in the US pending home sales for May rose 44.3% month on month after two previous months of declines, bolstering hopes for global fuel demand. A Reuters analysis expects US crude oil stockpiles to fall from record highs last week. All eyes for signs of potential demand recovery are on data announcements due on Tuesday from the American Petroleum Institute, from the US government’s Energy Information Administration on Wednesday, and from the key 4 July holiday, where increased travel is expected. On the supply side Libya’s National Oil Company signalled progress on talks to resume exports, potentially boosting supply, bringing to the market a fraction of Libya’s 1% of global oil supply. OPEC+ unwavering compliance and stronger than expected Chinese factory data prevented oil to slide further.
MARKETS NEWS:
* Russian Crude Output Close to OPEC+ Target for Second Month
* Saudis to Raise Aug. Arab Light OSP to Asia by $1.25: Survey
* Saudi Prince, Nigerian President Discuss OPEC+ Deal: SPA
* A Second Virus Wave Is Threatening U.S. Oil Demand Again
* Tanker Market May Take Future Sanctions In Its Stride
* Alberta Premier Sees Oil Market Supply Shortage in 12-18 Months
* California Gasoline Dips on Houston Cargo Coming, Bars Closing
* Chicago Fuels HitMulti-Month Highs With Line 5 Crude Loss
* U.S. Gasoline Imports From Europe Rise After Recent Low: Data
* Weekly Gasoline Demand Falls For First Time Since Memorial Day
OTHER NEWS:
* Permian Driller Lilis Files for Bankruptcy, Citing Coronavirus
* Chesapeake Pushed Into Bankruptcy by Plunging Energy Prices
* Canada’s Oil Province Uses Covid Crisis to Speed Economic Revamp
* China Factory Outlook Brighter in June as Recovery Continues
* China Has $139 Billion Mountain to Climb to Meet U.S. Trade Deal
* Venezuela’s Maduro Expels EU Ambassador Over New Sanctions
* ConocoPhillips Curbs Return to Houston Office Amid Virus Spike
PHYSICAL CRUDE NEWS:
* ASIA: China Oil Titans Plan Joint Crude Buying; Adnoc Cuts
* LATAM: China Teapots Process Less Lula; Oriente to P66
* US/CANADA: LLOG Production Gets Date, Exxon Raises Rates
* NSEA: BFOET Loadings to Fall; Johan Sverdrup Record
* MED: Surgut Sells Urals to Shell; Russian June Output
* WAF: Zafiro Loadings to Gain, Ceiba Steady; Angola Sales
OIL PRODUCT NEWS:
* U.S.: Enbridge Shutdown Lifts Chicago Fuels
* EUROPE: Total Antwerp Halts FCC; Primorsk Exports
* ASIA: Clean Fuel Hoard at Sea Near Singapore Drops
ECONOMIC EVENTS: (Times are London)
* 5pm: EIA releases 914 production report
* 7pm: EIA releases Petroleum Supply Monthly
* 9:30pm: API weekly report on U.S. oil inventories
ANALYST COLUMNS:
* Oil and Gas Investments to Drop by 23% in 2020: Fitch Solutions
* OIL MKT RESEARCH: Virus Resurgence Threatens U.S. Recovery
OTHER FINANCIAL MARKETS:
* Asia Stocks Rise, Extending Second-Quarter Rebound: Markets Wrap
Rotterdam 3.5% INDIC
Jul20 223.75 / 225.75
Aug20 223.00 / 225.00
Sep20 220.50 / 222.50
Oct20 218.50 / 220.50
Nov20 218.50 / 220.50
Dec20 219.50 / 221.50
Q3-20 222.50 / 224.50
Q4-20 218.75 / 220.75
Q1-21 223.25 / 225.25
Q2-21 226.25 / 229.25
CAL21 225.75 / 231.75
Singapore 380 INDIC
Jul20 234.75 / 236.75
Aug20 236.75 / 238.75
Sep20 237.50 / 239.50
Oct20 238.00 / 240.00
Nov20 238.75 / 240.75
Dec20 240.25 / 242.25
Q3-20 236.50 / 238.50
Q4-20 239.00 / 241.00
Q1-21 243.25 / 245.25
Q2-21 245.25 / 248.25
CAL21 245.25 / 251.25
Rott VLSFO 0.5% INDIC
Jul20 279.00 / 285.00
Aug20 284.25 / 290.25
Sep20 288.50 / 294.50
Oct20 292.25 / 298.25
Nov20 295.50 / 301.50
Dec20 298.50 / 304.50
Q3-20 283.75 / 289.75
Q4-20 295.25 / 301.25
Q1-21 304.75 / 310.75
Q2-21 311.75 / 319.75
CAL21 313.75 / 321.75
Singapore VLSFO 0.5% INDIC
Jul20 287.50 / 293.50
Aug20 295.50 / 301.50
Sep20 302.25 / 308.25
Oct20 308.00 / 314.00
Nov20 313.00 / 319.00
Dec20 317.00 / 323.00
Q3-20 295.00 / 301.00
Q4-20 312.50 / 318.50
Q1-21 323.50 / 329.50
Q2-21 330.00 / 338.00
CAL21 335.25 / 343.25
Sing 10ppm GO INDIC
Jul20 47.08 / 47.22
Aug20 46.62 / 46.82
Sep20 46.85 / 47.05
Oct20 47.27 / 47.47
Nov20 47.63 / 47.83
Dec20 47.98 / 48.18
Q3-20 46.80 / 47.10
Q4-20 47.58 / 47.88
Q1-21 48.73 / 49.03
Q2-21 49.92 / 50.22
CAL21 50.23 / 50.63
ICE Gasoil 10ppm INDIC
Jul20 350.01 / 352.01
Aug20 354.42 / 356.42
Sep20 358.92 / 360.92
Oct20 362.38 / 364.38
Nov20 364.65 / 366.65
Dec20 367.42 / 369.42
Q3-20 354.45 / 356.45
Q4-20 364.82 / 366.82
Q1-21 373.19 / 375.19
Q2-21 381.49 / 383.49
CAL21 385.38 / 387.38
Rott Hi5 Sing Hi5
Jul20 57 55
Aug20 63 61
Sep20 70 67
Oct20 76 72
Nov20 79 76
Dec20 81 79
Q3-20 63 61
Q4-20 78 75
Q1-21 84 82
Q2-21 88 87
CAL21 89 91