Good morning all. Brent futures fell -1.2% to $42.13 a barrel to lowest levels since July 30 whereas WTI futures were down -1.51% to $39.17 per barrel, lowest since July 10.
As the US enjoys Labor Day, parts of the states are preparing to welcome record heatwaves with California grid operators issuing a “stage 2” power emergency late on Saturday with outages a possibility according to report from Reuters. The heatwave has also bought with it the 2nd and 3rd largest forest fires in the state’s history.
The IEA has issued a round-up that states the global economy is not likely to enter into any major slowdowns, but uncertainty over China’s oil demand and built up supplies could affect the recovery into the next year. Demand is not expected to experience any robust growth, yet it does seem to be stabilising with this sentiment set to last, given that oil plummeted to historic lows, prices are hovering around the $40 per barrel with analysts expecting prices to be range bound at around $40-$45 per barrel.
Staying with Crude, Chinese imports climbed 13% year on year thanks to plentiful orders at the collapse of the oil price, and delayed orders dating back to Q2. Import levels are equivalent to 11.18 million barrels per day according to the General Administration of Customs which were snapped up at the trough of the oil price throughout the pandemic. Refinitiv data shows 20 vessels are off the port of Qingdao, waiting to offload their cargoes.
Finally, some sites that that were considerably damaged by Hurricane Laura are yet to be put back into operation due to the damage that was sustained, but thankfully these damages have not threated the sealed underground caverns according to US energy department.
MARKETS NEWS:
* China Oil Imports Fall Again Amid High Stockpiles and Congestion
* Russia Says Oil Demand May Need 3 Years to Reach Pre-Virus Level
* Cheapest Labor Day Gas Prices in 16 Years Casts Pall Over Oil
* Kazakhstan Fully Met OPEC+ Commitment in August: Energy Ministry
* Citgo, PSX Lake Charles Outage Puts Strain on NorthAm, LatAm Oil
* Russia’s Novak Sees Oil Prices at $50-55 a Barrel Next Year
* U.S. Gulf Shuts in 195,163 B/D or 10.5% Oil Production: BSEE
* Hedge Fund Managers Flip to Net Bearish on Nymex Diesel
* Baker Hughes Global Rig Count Up for First Time Since Oil Rout
OTHER NEWS:
* Venezuela Says PDVSA Oil Traders To Go on Trial Sept. 14
* Merkel’s Backing for Nord Stream Is Being Put to Test in Berlin
PHYSICAL CRUDE NEWS:
* ASIA: China’s Aug. Oil Imports Fall; Diesel in Depression
* LATAM: Lake Charles Outage Impact; PDVSA Traders on Trial
* US/CANADA: Mars Oil at 2-Week High Amid Platform Issues
* NSEA: Vitol Sells Brent to Mercuria; Kinneil Plant Restart
* MED: Trafigura Offers Urals Higher; Milazzo Shuts CDU
* WAF: Sonangol Sells 3 Cargoes; Perenco Sells Rabi Light
OIL PRODUCT NEWS:
* ASIA: Diesel Hit by Faltering Recovery; Ampol Buys
* EUROPE: Total Antwerp Shutdown; Exxon Rotterdam
* U.S.: Louisiana Refineries Facing Weeks of Downtime
ECONOMIC EVENTS: (Times are London.)
* U.S., Canada Labor Day public holidays
* WTI and other CME energy contracts halt at 6pm, reopen 11pm
* Brent and other ICE Futures Europe contracts close early at 6:30pm
ANALYST COLUMNS:
* Oil Prices Face a Chill Autumn Wind: Julian Lee
* U.S. Fracking Supported Well Into 2021 Without More Rigs: Rystad
OTHER FINANCIAL MARKETS:
* Stocks Stabilize Post Selloff; Dollar Edges Higher: Markets Wrap
(Bloomberg News/Data)
Singapore 380 INDIC
Oct20 244.25 / 246.25
Nov20 245.25 / 247.25
Dec20 246.75 / 248.75
Jan21 248.75 / 250.75
Feb21 251.00 / 253.00
Mar21 253.25 / 255.25
Q4-20 245.50 / 247.50
Q1-21 251.00 / 253.00
Q2-21 257.00 / 259.00
Q3-21 261.25 / 264.25
CAL21 260.50 / 263.50
Rotterdam 3.5% INDIC
Oct20 231.25 / 233.25
Nov20 230.25 / 232.25
Dec20 230.50 / 232.50
Jan21 232.25 / 234.25
Feb21 234.00 / 236.00
Mar21 235.75 / 237.75
Q4-20 230.75 / 232.75
Q1-21 234.00 / 236.00
Q2-21 239.25 / 241.25
Q3-21 242.75 / 245.75
CAL21 243.00 / 246.00
Singapore VLSFO 0.5% INDIC
Oct20 300.75 / 305.75
Nov20 303.50 / 308.50
Dec20 306.00 / 311.00
Jan21 309.00 / 314.00
Feb21 311.50 / 316.50
Mar21 314.00 / 319.00
Q4-20 303.50 / 308.50
Q1-21 311.50 / 316.50
Q2-21 318.50 / 324.50
Q3-21 324.50 / 330.50
CAL21 320.75 / 326.75
Rott VLSFO 0.5% INDIC
Oct20 282.25 / 287.25
Nov20 285.00 / 290.00
Dec20 287.75 / 292.75
Jan21 291.25 / 296.25
Feb21 294.75 / 299.75
Mar21 298.00 / 303.00
Q4-20 285.00 / 290.00
Q1-21 294.50 / 299.50
Q2-21 303.25 / 309.25
Q3-21 310.75 / 316.75
CAL21 306.25 / 312.25
Sing 10ppm GO INDIC
Oct20 45.49 / 45.63
Nov20 46.04 / 46.24
Dec20 46.55 / 46.75
Jan21 47.09 / 47.29
Feb21 47.63 / 47.83
Mar21 48.17 / 48.37
Q4-20 46.00 / 46.20
Q1-21 47.63 / 47.83
Q2-21 49.22 / 49.42
Q3-21 50.68 / 50.88
CAL21 49.65 / 50.05
ICE Gasoil 10ppm INDIC
Oct20 341.54 / 343.54
Nov20 346.35 / 348.35
Dec20 350.88 / 352.88
Jan21 356.14 / 358.14
Feb21 361.29 / 363.29
Mar21 365.15 / 367.15
Q4-20 346.25 / 348.25
Q1-21 360.86 / 362.86
Q2-21 372.06 / 374.06
Q3-21 388.37 / 390.37
CAL21 379.45 / 381.45
Rott Hi5 Sing Hi5
Oct20 52 58
Nov20 56 60
Dec20 59 61
Jan21 60 62
Feb21 62 62
Mar21 64 62
Q4-20 56 60
Q1-21 62 62
Q2-21 66 64
Q3-21 69 65
CAL21 65 62