Brent futures for November delivery fell $1.40, or 3.3%, to settle at $41.03 a barrel, while the more active Brent contract for December fell 3.1% to settle at $41.56. WTI crude fell $1.31, or 3.2%, to settle at $39.29 per barrel.
A quiet Tuesday mimics the sentiment of Monday as we lead up to the start of Golden Week in China starting on the first of October, although oil fell over $1 at 15.30GMT, combined with the death of Kuwait’s Humanitarian Emir and the scathing debates that happened at 0100GMT on Wednesday lead to investor uncertainty surrounding oil prices.
Bearish factors on both the demand and supply side continued to weigh in Asia trade and were not expected to improve in the near term according to experts, as a retreat in the days prices came after the dollar weakened and a surge in US equity prices. The balance is between rising Virus cases suggest that demand will fall versus increasing supply from countries such as Libya. (S&P Global Platts)
Heads of the top global trading houses have spoken at the global FT commodities annual summit and suggested that Crude prices remain flat well into 2021, as there are modest expectations for the near future. The majority have crude rangebound at $40-$45 with the CEO of Mercuria being the most pessimistic on the situation by not expecting demand to rebound until at least 3 years’ time. (Reuters)
Gazprom has pledges to honour its dividend payments and policies, notwithstanding any market conditions. It has said that it will pay no less than half of its adjusted net profit in dividend. Whilst in other oil major news, Shell plans to cut 9,000 jobs, or 10% of its workforce as it shifts its attentions away from oil and gas to low carbon alternatives as it looks to save up to $2.5 billion by the end of 2022. (Reuters)
MARKETS NEWS:
* Crude Trading Hits Lowest This Year as Volatility Slumps:
Chart
* Pierre Andurand Expects Oil Demand May Peak in Six Years
* Gasoline Prices Overtake Diesel With Cars Favored Amid Virus
* Threat of Venezuela Sanctions Has Reliance Buying Canadian
Crude
* Some Norway Oil Workers Strike, Johan Sverdrup Field May Shut
* Total Sees Oil Demand Peaking Around 2030 as World Goes Green
* Russia Raises Oil Output Amid OPEC+ Calls for Full Compliance
* Battered Oil Refiners Find Some Relief in Gasoline, Plastics
Use
* Benchmark VLCCs Extend Drop; Dirty Tankers to NW Europe Rise
* API Reports U.S. Crude Stockpiles fell 831K Bbl Last Week
* India Exploring Storing Crude in U.S. and Other Countries
OTHER NEWS:
* Shell to Announce Restructuring of Senior Roles on Wednesday
* U.S. Oil Fund Aug. Total Income $204.11B; Shares Fall 3.7%
* Marathon Petroleum Starts Cutting Jobs, Reuters Says
PHYSICAL CRUDE NEWS:
* ASIA: Saudis Seen Raising Arab Light OSP; Indian Storage
* LATAM: Reliance Gets Term of Canadian Crude; Peru Protests
* US/CANADA: Reliance Term Canada Oil; Barge Bankruptcy
* NSEA: BFOET Loadings to Dip; Litasco Offers Forties
* MED: Socar, Equinor Offer Azeri Light; Hellenic Tender
* WAF: Sonangol Sells Clov; Pertamina Closes Dec. Tender
OIL PRODUCT NEWS:
* U.S.: Demand Rally 18 Months Off, Top Traders Say
* EUROPE: BP Gelsenkirchen to Halt Units; Primorsk
* ASIA: India’s Gasoline Crunch; Pertamina Naphtha
ECONOMIC DATA/EVENTS: (Times are London.)
* 3:30pm: EIA weekly oil inventory report
* FT Summit, final day, with speakers including Petrobras CEO
Roberto Castello Branco
* EIA Monthly Crude and Natural Gas Production and Petroleum
Supply Monthly reports
* Genscape weekly ARA crude inventory report
* Total SA investor day
** See OIL WEEKLY AGENDA for this week’s events
ANALYST VIEWS/COLUMNS:
* Crude Output Creeping Up at Wrong Time for Virus-Stricken
Market
* BNP Paribas Lowers 2021 Price Forecasts for Brent, WTI
OTHER FINANCIAL MARKETS:
* U.S., European Futures Dip After Election Debate: Markets Wrap
Singapore 380 INDIC
Oct20 233.75 / 235.75
Nov20 234.25 / 236.25
Dec20 235.50 / 237.50
Jan21 237.25 / 239.25
Feb21 239.00 / 241.00
Mar21 240.75 / 242.75
Q4-20 234.50 / 236.50
Q1-21 239.00 / 241.00
Q2-21 244.25 / 246.25
Q3-21 248.00 / 251.00
CAL21 247.00 / 250.00
Rotterdam 3.5% INDIC
Oct20 220.75 / 222.75
Nov20 221.00 / 223.00
Dec20 221.25 / 223.25
Jan21 223.00 / 225.00
Feb21 224.75 / 226.75
Mar21 226.50 / 228.50
Q4-20 221.00 / 223.00
Q1-21 224.75 / 226.75
Q2-21 229.75 / 231.75
Q3-21 232.25 / 235.25
CAL21 231.25 / 234.25
Singapore VLSFO 0.5% INDIC
Oct20 305.50 / 310.50
Nov20 304.50 / 309.50
Dec20 304.25 / 309.25
Jan21 304.25 / 309.25
Feb21 305.00 / 310.00
Mar21 306.00 / 311.00
Q4-20 304.75 / 309.75
Q1-21 305.00 / 310.00
Q2-21 308.00 / 314.00
Q3-21 312.00 / 318.00
CAL21 310.00 / 316.00
Rott VLSFO 0.5% INDIC
Oct20 286.75 / 291.75
Nov20 286.00 / 291.00
Dec20 285.75 / 290.75
Jan21 286.25 / 291.25
Feb21 287.00 / 292.00
Mar21 288.25 / 293.25
Q4-20 286.00 / 291.00
Q1-21 287.00 / 292.00
Q2-21 290.25 / 296.25
Q3-21 294.00 / 300.00
CAL21 292.00 / 298.00
Sing 10ppm GO INDIC
Oct20 43.27 / 43.41
Nov20 43.72 / 43.92
Dec20 44.16 / 44.36
Jan21 44.57 / 44.77
Feb21 45.00 / 45.20
Mar21 45.44 / 45.64
Q4-20 43.70 / 43.90
Q1-21 45.01 / 45.21
Q2-21 46.31 / 46.51
Q3-21 47.64 / 47.84
CAL21 46.75 / 47.15
ICE Gasoil 10ppm INDIC
Oct20 324.15 / 326.15
Nov20 328.69 / 330.69
Dec20 332.76 / 334.76
Jan21 337.23 / 339.23
Feb21 341.46 / 343.46
Mar21 344.65 / 346.65
Q4-20 328.55 / 330.55
Q1-21 341.11 / 343.11
Q2-21 350.56 / 352.56
Q3-21 362.55 / 364.55
CAL21 356.00 / 358.00
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