Brent crude fell 23 cents, or 0.6%, to $41.69 a barrel by 0243 GMT after dropping 2.9% last week. WTI on the other hand was at $40.04 a barrel, down 21 cents or 0.5%, following a 2.1% decline last week.
The previous week did not set the world alight as gains in crude prices as a result of the EIA news of draws in gasoline and crude were swiftly counteracted by the global increases in cases of COVID-19 and tightening domestic and international restrictions on movements. Also, Libya has made it common knowledge of their intention to remove an 8-month blockade on oil exports with levels expected to reach 260,000 bpd into this coming week which has market participants uncertain on whether total demand will be able to absorb such increases in supply.
Iran has expected to have produced 1.5 million bpd on average in September, bringing it to its highest level of exports in a year and double the level seen in August. Since the US imposed sanctions on the Iranian exportation of crude, they have been finding ways to circumnavigate these US regulations using ships who turn off transponders and documents that state the oil does not derive from Iran. (Oilprice.com)
Russia and its figures from internal forecasts expect to produce 507.4 million tonnes of oil this year and will look to increase its production over the next three years to 560 million tonnes, or 11.2 million barrels per day, in 2023 The ministry forecast oil exports of 225 million tonnes this year, down from 269.2 million tonnes in 2019. (Reuters)
In the US, producers are planning for a worst-case scenario in the event of a Biden win and the potential ban on fracking as a result of him taking the White House as part of his manifesto. The New Mexico shale patch is the go-to place for cost effective operations without foregoing much outlay as an inevitable ban on fracking in the area would come into play should Biden take office. (World Oil)
MARKETS NEWS:
* Biggest Independent Oil Trader Sees Price Gains Unlikely in
2020
* Russia Sees Long Way to Recovery for Global Crude Oil Market
* War-Torn Libya’s Oil Output Triples a Week After Restarting
* Oil Tanker Outlook Downgraded With Covid-19 Case Resurgence
* Aramco Ships First Cargo from Jazan Oil Refinery, Kpler Says
OTHER NEWS:
* Commodity Titans to Spell Out Risks as Warning Signs Flash
Amber
* Exxon Is Said to Narrow Bidders for $3 Billion Malaysian
Assets
* The Crown Jewel of the Shale Patch Braces for a Biden Ban
* Trafigura JV to Invest About $2B in Renewables by 2025, FT
Says
* Saudi Arabia Sends Blue Ammonia to Japan in World-First
Shipment
* Devon-WPX Deal Would Answer Investor Calls for Permian M&A
Wave
PHYSICAL CRUDE NEWS:
* ASIA: China Stockpiles Near Record; Iraq Exports Watched
* LATAM: VLCC Rates Drop; Teapots Buy More Lula; Albacora
* US/CANADA: Oil Rig Count Up 4 to 183, Baker Hughes Says
* NSEA: Litasco Offers Forties Lower; Norway Strike Looms
* MED: Urals Oct. Loadings to Rise Slightly; Surgut Tender
* WAF: Nigeria’s Unsold Oil Persists; Ghana to Boost Exports
OIL PRODUCT NEWS:
* U.S. OIL PRODUCTS: Valero Idles Hydrocracker, PADD 3 Gasoline
Up
* EUROPE OIL PRODUCTS: Flow From Mideast Gains; Total Donges
Halts
* ASIA OIL PRODUCTS: China Refiners to Trim October Fuel Exports
ECONOMIC DATA/EVENTS: (Times are London.)
* FT Commodities Global Summit, first day, with speakers
including IEA Executive Director Fatih Birol and Socar Trading
CEO Mariam Almaszade
** OIL WEEKLY AGENDA: Tanker Trackers; OPEC Survey; FT Summit
ANALYST VIEWS/COLUMNS:
* Oil Heavyweights Look Ready for a Showdown: Julian Lee
* IMO 2020 Fuel Floating Off Singapore Falls W/w: Kpler
OTHER FINANCIAL MARKETS:
* Asia Stocks Rise With U.S. Futures; Dollar Steady: Markets
Wrap
Singapore 380 INDIC
Oct20 239.00 / 241.00
Nov20 239.50 / 241.50
Dec20 240.75 / 242.75
Jan21 242.75 / 244.75
Feb21 244.50 / 246.50
Mar21 246.50 / 248.50
Q4-20 239.75 / 241.75
Q1-21 244.50 / 246.50
Q2-21 250.25 / 252.25
Q3-21 254.50 / 257.50
CAL21 251.00 / 254.00
Rotterdam 3.5% INDIC
Oct20 225.75 / 227.75
Nov20 226.25 / 228.25
Dec20 226.75 / 228.75
Jan21 228.50 / 230.50
Feb21 230.25 / 232.25
Mar21 232.25 / 234.25
Q4-20 226.25 / 228.25
Q1-21 230.25 / 232.25
Q2-21 235.75 / 237.75
Q3-21 238.50 / 241.50
CAL21 235.25 / 238.25
Singapore VLSFO 0.5% INDIC
Oct20 310.50 / 315.50
Nov20 310.00 / 315.00
Dec20 310.25 / 315.25
Jan21 311.00 / 316.00
Feb21 312.00 / 317.00
Mar21 313.25 / 318.25
Q4-20 310.25 / 315.25
Q1-21 312.25 / 317.25
Q2-21 315.75 / 321.75
Q3-21 320.25 / 326.25
CAL21 318.00 / 324.00
Rott VLSFO 0.5% INDIC
Oct20 290.00 / 295.00
Nov20 289.75 / 294.75
Dec20 290.00 / 295.00
Jan21 291.50 / 296.50
Feb21 293.25 / 298.25
Mar21 295.00 / 300.00
Q4-20 290.00 / 295.00
Q1-21 293.25 / 298.25
Q2-21 298.00 / 304.00
Q3-21 303.00 / 309.00
CAL21 300.50 / 306.50
Sing 10ppm GO INDIC
Oct20 43.97 / 44.11
Nov20 44.46 / 44.66
Dec20 44.96 / 45.16
Jan21 45.44 / 45.64
Feb21 45.92 / 46.12
Mar21 46.41 / 46.61
Q4-20 44.45 / 44.65
Q1-21 45.92 / 46.12
Q2-21 47.33 / 47.53
Q3-21 48.70 / 48.90
CAL21 47.77 / 48.17
ICE Gasoil 10ppm INDIC
Oct20 328.08 / 330.08
Nov20 333.28 / 335.28
Dec20 338.13 / 340.13
Jan21 343.14 / 345.14
Feb21 347.64 / 349.64
Mar21 350.98 / 352.98
Q4-20 333.15 / 335.15
Q1-21 347.25 / 349.25
Q2-21 357.08 / 359.08
Q3-21 369.30 / 371.30
CAL21 362.63 / 364.63
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