Crude rallied 50 cent this morning after large buying action in the early morning pushing Brent up to the $49.73 level at 0800GMT.
OPEC+ production finally seems to have been settled in a compromised deal on cuts that will see a gradual and deliberate increase in oil production quotas going into 2021. Brent settled as its highest level since march on December 3rd as the oil cartel looked to clarify its position on the oil output quotas and stabilized the oil prices.
Each monthly adjustment, according to Russian energy minister Alexander Novak, will not exceed 500,000 b/d in either direction, with Iranian oil minister telling state media that this arrangement will persist until total production rise reaches 2 million b/d. (S&P Global Platts)
Petroleum Association of Japan president has said that the planned output cuts are unlikely to rebalance the oil market. (S&P Global Platts)
With regards to fuel, the European fuel oil market saw the spread between 0.5% sulfur marine fuel and 3.5%S fuel oil in Europe hit a seven-month high, despite unsold VLSFO cargoes remaining in the market as year-end approaches. The difference between 3.5%S FOB Rotterdam barges and 0.5%S FOB Rotterdam barges was assessed at $80.25/mt on Dec. 2.
INDEX: (MTD Estimates)
* Sing 380: 289.87
* Rott 3.5%: 265.75
* Sing 0.5%: 363.41
* Rott 0.5%: 346.50
MARKETS NEWS:
* Show of OPEC+ Unity on Compromise Deal Cheers Oil Analysts
* Any OPEC+ Adjustments to Deal Can Be in Either Direction: Novak
* Another Bumper Chinese Import Haul to be Led by Iron, Oil, Soy
* Four Oil Tankers Await to Discharge Off U.S. Virgin Islands
* U.S. Diesel Glut Has Shrunk So Much That Europe Resupply Needed
* North Sea Oil in Floating Storage Declines Again on Asian Demand
* Denmark Ends North Sea Oil Exploration, Drops Production in 2050
* Benchmark Crude Tanker Rates Jump; U.S.-Europe Cleans Decline
OTHER NEWS:
* Vitol Pays $160 Million to Settle Bribery, Manipulation Charges
* Chevron Slashes Long-Term Investment 27% Following Oil Slump
* Norway Union Agrees to End Strike That Impacted the Oil Industry
* Trump to Sell Arctic Oil Rights Days Before Biden Sworn In
* IEA Chief Sees ‘Disturbing’ Signal for Climate Target
OIL PRODUCT WRAPS:
* U.S.: Calif. Gasoline Sinks, U.S. Drawing Diesel
* EUROPE: Tupras Izmir to Suspend Output; Grandpuits
* ASIA: Japan Embracing EVs; Singapore Stockpiles
ECONOMIC DATA: (Times are London.)
* 2:30pm: U.S. Census crude export data
* 6pm: Baker Hughes weekly rig count
* 6:30pm: ICE Commitments of Traders report
* 8:30pm: CFTC Commitments of Traders report
ANALYST VIEWS/COLUMNS:
* Citi Raises Oil Price Estimates for 1Q, 2Q After OPEC+ Deal
* Goldman Sees Steady Oil Price Rally on OPEC+’s Coordinated Pact
* Oil Market to Be Under-Supplied in 1Q 2021 After OPEC+ Deal: UBS
* OPEC+ Deal Still Allows for Oil Market Deficit Through 1Q: TD
* U.S. Oil Production Doesn’t Grow at $45 a Barrel, BNEF Says
Singapore 380 INDIC
Jan21 292.50 / 294.50
Feb21 291.50 / 293.50
Mar21 290.25 / 292.25
Apr21 288.25 / 290.25
May21 286.00 / 288.00
Jun21 284.00 / 286.00
Q1-21 291.50 / 293.50
Q2-21 286.00 / 288.00
Q3-21 280.00 / 282.00
Q4-21 273.50 / 276.50
CAL21 281.25 / 287.25
Rotterdam 3.5% INDIC
Jan21 276.00 / 278.00
Feb21 275.00 / 277.00
Mar21 273.50 / 275.50
Apr21 271.50 / 273.50
May21 269.25 / 271.25
Jun21 266.75 / 268.75
Q1-21 275.00 / 277.00
Q2-21 269.00 / 271.00
Q3-21 261.75 / 263.75
Q4-21 253.50 / 256.50
CAL21 264.00 / 270.00
Singapore VLSFO 0.5% INDIC
Jan21 373.75 / 378.75
Feb21 374.00 / 379.00
Mar21 374.25 / 379.25
Apr21 374.50 / 379.50
May21 374.75 / 379.75
Jun21 375.00 / 380.00
Q1-21 374.00 / 379.00
Q2-21 374.75 / 379.75
Q3-21 375.00 / 381.00
Q4-21 375.75 / 381.75
CAL21 374.50 / 380.50
Rott VLSFO 0.5% INDIC
Jan21 353.25 / 358.25
Feb21 353.50 / 358.50
Mar21 353.75 / 358.75
Apr21 354.00 / 359.00
May21 354.25 / 359.25
Jun21 354.50 / 359.50
Q1-21 353.50 / 358.50
Q2-21 354.25 / 359.25
Q3-21 354.50 / 360.50
Q4-21 355.50 / 361.50
CAL21 354.00 / 360.00
Sing 10ppm GO INDIC
Jan21 54.59 / 54.73
Feb21 54.71 / 54.91
Mar21 54.89 / 55.09
Apr21 55.06 / 55.26
May21 55.24 / 55.44
Jun21 55.41 / 55.61
Q1-21 54.65 / 54.95
Q2-21 55.19 / 55.49
Q3-21 55.67 / 55.97
Q4-21 55.98 / 56.28
CAL21 55.32 / 55.72
ICE Gasoil 10ppm INDIC
Jan21 409.21 / 411.21
Feb21 411.35 / 413.35
Mar21 413.15 / 415.15
Apr21 414.61 / 416.61
May21 415.83 / 417.83
Jun21 417.36 / 419.36
Q1-21 411.25 / 413.25
Q2-21 415.93 / 417.93
Q3-21 420.41 / 422.41
Q4-21 422.44 / 424.44
CAL21 417.50 / 419.50
Rott Hi5 Sing Hi5
Jan21 79 83
Feb21 80 84
Mar21 82 85
Apr21 84 88
May21 87 90
Jun21 89 92
Q1-21 80 84
Q2-21 87 90
Q3-21 95 97
Q4-21 104 104
CAL21 90 93
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