Good morning all. Brent crude fell 6 cents, or 0.1%, to $45.03 at 2:46 am GMT, while WTI crude futures slipped 2 cents to $41.93 a barrel. The resurgence of coronavirus infections remains the main uncertainty in the oil market, as that will determine how fast fuel demand rebounds. Tallies show infections in the United States are rising in a number of states, including Colorado, Ohio and Virginia.
In the US the coronavirus stimulus package remains the last hope to boost fuel demand, with the U.S. driving season coming to an end soon. However, there is lack of progress in the talks between the White House and Democrats, with Democrats saying President Donald Trump may have to issue executive orders if he does not want to negotiate further.
Over the week, a weaker U.S. dollar has helped support higher oil prices, as oil is priced in U.S. dollars, making it more attractive to crude buyers in other currencies. While the index rose slightly today, the dollar is expected to weaken ahead of U.S. non-farm payrolls data that are widely expected to show jobs creation slowed in July from the previous month amid a surge in COVID-19 infections.
On the supply front, Iraqi state oil-marketing organization SOMO declared that the second-biggest OPEC producer will reduce production by an additional 400,000 barrels a day this month. The cuts come as OPEC+ pumps about 1.5 million barrels a day more in August than in July.
Meanwhile, Customs data released on Friday show Chinese imports in July dropping to 51.29 million tons, equivalent to 12.13 million barrels a day, down from 53.18 million tons in June. Furthermore, vessels bound to unload their cargo are being severely delayed as ports became congested with tankers carrying cheaper oil purchased earlier in the year.
On another note, Kuwait Petroleum Corp. said the announcement of its crude official selling prices for September sales will be postponed beyond Aug. 10 due to the Eid al-Adha holiday.
MARKETS NEWS:
* Saudis Cut Oil Pricing to Asia, Europe as OPEC+ Adds Barrels
* Kuwait to Postpone Sept. Oil Price Release Beyond Aug. 10
* Staycation Britain Sees Road Fuel Sales Pass Pre-Lockdown Level
* One Stranded Tanker Signals Peril of Trading With Venezuela
* Iraq Oil Output Cut in Aug., Sept. to Reach 1.25m B/D Each Month
* U.S. Gulf Jet Fuel Touches 5-Month High as Stockpiles Decline
* Angola’s Sonangol Sells Three September-Loading Crude Cargoes
* Mexico FPSO Yuum K’ak Naab Suspends Crude Exports Until Aug. 15
* ARA Gasoil Stockpiles Slip to 2-Month Low as Imports Decline: IG
* Gasoil Stockpiles Fall in Europe’s ARA Region: Insights Global
OTHER NEWS:
* Exxon Says 20% of Oil, Gas Reserves Threatened by Low Prices
* $500 Million Oil Profit by U.K. Firm Draws Senator’s Scrutiny
* Tanker Line Stena Bulk Turns to Used Cooking Oil in Green Push
* Oil Tanker Owner Diverting Ships to Get Seafarers Home: CEO
* Iraq to Send Surplus Fuel Oil to Help Lebanese After Blast: INA
* Power Traders Flock to Japan And Its $136 Billion Dream Market
PHYSICAL CRUDE NEWS:
* ASIA: Iraq Forced Into Compliance; U.S.-China Ships Booked
* LATAM: Ecuador’s Oil Deal With China; Mexico FPSO Exports
* US/CANADA: Saudi Keeps Oil Pricing to U.S. Unchanged
* NSEA: BP Offers Brent Lower; Litasco Bids Forties or Brent
* MED: Tepid Response to Saudi OSP Cuts; Urals Offered Lower
* WAF: IOC Buys From Shell, Chevron; Sonangol Spot Oil Sales
OIL PRODUCT NEWS:
* U.S.: Gulf Coast Jet Fuel Touches 5-Month High
* EUROPE: U.K. Road Fuel Sales Surpassed Pre-Lockdown
* ASIA: Singapore Light Distillates Stockpiles Plunge
ECONOMIC EVENTS: (Times are London. )
* 6:00pm Baker Hughes U.S. Rig Count
* 6:30pm ICE Commitments of Traders report
* 8:30pm CFTC Commitments of Traders report
* EARNINGS: Rosneft
ANALYST COLUMNS:
* World Gasoline Markets Tilt Toward Higher-Octane Fuel: Stratas
* JPMorgan Slashes 2H20 Oil Demand Forecast by 1.5M B/D
OTHER FINANCIAL MARKETS:
* Stocks Fall, Bonds Climb on U.S.-China Tensions: Markets Wrap
Singapore 380 INDIC
Sep20 253.25 / 255.25
Oct20 254.00 / 256.00
Nov20 255.25 / 257.25
Dec20 256.50 / 258.50
Jan21 258.25 / 260.25
Feb21 260.25 / 262.25
Q4-20 255.25 / 257.25
Q1-21 260.25 / 262.25
Q2-21 265.00 / 267.00
Q3-21 269.00 / 272.00
CAL21 265.00 / 271.00
Rotterdam 3.5% INDIC
Sep20 242.50 / 244.50
Oct20 241.00 / 243.00
Nov20 241.00 / 243.00
Dec20 241.50 / 243.50
Jan21 243.50 / 245.50
Feb21 245.25 / 247.25
Q4-20 241.25 / 243.25
Q1-21 245.25 / 247.25
Q2-21 249.75 / 251.75
Q3-21 252.75 / 255.75
CAL21 248.50 / 254.50
Singapore VLSFO 0.5% INDIC
Sep20 323.50 / 328.50
Oct20 326.25 / 331.25
Nov20 329.00 / 334.00
Dec20 331.75 / 336.75
Jan21 335.25 / 340.25
Feb21 338.00 / 343.00
Q4-20 329.00 / 334.00
Q1-21 338.00 / 343.00
Q2-21 345.00 / 351.00
Q3-21 351.00 / 357.00
CAL21 347.25 / 353.25
Rott VLSFO 0.5% INDIC
Sep20 304.00 / 309.00
Oct20 307.75 / 312.75
Nov20 310.50 / 315.50
Dec20 312.50 / 317.50
Jan21 316.00 / 321.00
Feb21 319.00 / 324.00
Q4-20 310.25 / 315.25
Q1-21 318.75 / 323.75
Q2-21 326.00 / 332.00
Q3-21 331.75 / 337.75
CAL21 328.00 / 334.00
Sing 10ppm GO INDIC
Sep20 49.85 / 49.99
Oct20 50.16 / 50.36
Nov20 50.50 / 50.70
Dec20 50.87 / 51.07
Jan21 51.30 / 51.50
Feb21 51.76 / 51.96
Q4-20 50.45 / 50.75
Q1-21 51.70 / 52.00
Q2-21 52.94 / 53.24
Q3-21 54.13 / 54.43
CAL21 53.34 / 53.74
ICE Gasoil 10ppm INDIC
Sep20 377.88 / 379.88
Oct20 382.07 / 384.07
Nov20 385.25 / 387.25
Dec20 388.37 / 390.37
Jan21 392.11 / 394.11
Feb21 395.83 / 397.83
Q4-20 385.25 / 387.25
Q1-21 394.89 / 396.89
Q2-21 404.15 / 406.15
Q3-21 414.86 / 416.86
CAL21 408.60 / 410.60
Rott Hi5 Sing Hi5
Sep20 63 72
Oct20 68 74
Nov20 71 75
Dec20 72 77
Jan21 74 78
Feb21 75 79
Q4-20 70 75
Q1-21 75 79
Q2-21 78 82
Q3-21 80 83
CAL21 79 82