Brent crude futures climbed 2 cents to $42.32 a barrel, after falling 0.2% overnight. U.S. WTI crude futures eased 1 cent to $40.21 a barrel at 0532 GMT , after jumping 2.4% on Wednesday.
The EIA figures on Wednesday afternoon produced a mixed response from market participants, with a 2 million barrel draw in crude which was only 12.4% more than the 5 year stock average and a 3.2 million barrel draw in distillates. However a 0.7 million barrel build in gasoline stocks held Brent pretty stable on an upwards trajectory from release of data. The draw was a glimpse of positive news in the midst of a barrage of bearish factors that are holding oil prices under is glass ceiling. (S&P Global Platts)
In the lead up to the presidential election, stimulus packages worth $1.5 trillion has been proposed by the Trump administration that has kept crude buoyant at the start of Thursday, even though the bill still has to be approved and originated by the House progress is being made on both sides with demand-side still the contributing factor that is being hampered within the economy as a result of 7.2 million infections in the US alone (Reuters)
News from Japan was notably bullish on Wednesday with data showing an increase of 27% increase of gasoline imports into the nation from the year previous as cheap overseas prices outpriced local refineries for the product who cut back on production as demand for jet fuel continued to be low. Imports totalled the equivalent of 85,755 barrels per day in August. (Reuters)
Four crude oil employees at BP have had their contracts terminated after a probe into the dealings with Singapore’s Hontop Energy, that was involved in financing the purchase of oil from Hontop that BP said became a separate dealing and it was therefore not obliged to pay Hontop or CIMB for said cargo. (Reuters)
MARKETS NEWS:
* Fresh Drop in Commercial Flights Adds to Jet-Fuel Glut Concerns
* Libya’s Oil Crescent Gets Back to Work as Sarir Field Opens
* Exxon Finally Gets Go-Ahead for $9 Billion Guyana Oil Project
* Venezuela to Import More Fuel As New Distribution Plan Begins
* Naphtha Jumps to Pre-Pandemic High With Demand From Brazil
* U.S. July Crude Oil Output Up 5.1% M/M to 10.984M B/D: EIA
* U.S. Oil Imports From Canada Highest Since August: EIA
* U.S. Distillate Demand at Lowest Seasonally in a Decade: EIA
* EIA: Crude -1,980k Bbl, Median Est. +1,000k Bbl
* California-Blend Gasoline Stockpiles Rise 6.3% to 6.24M Bbl
OTHER NEWS:
* Oil Strike in Western Europe’s Biggest Producer Set to Escalate
* Shell to Cut Up to 9,000 Jobs as Virus Accelerates Overhaul
* Nigeria May Sell Stake in State Oil Company in Industry Overhaul
* Seafarers Stranded by Virus Spark a Sudden Jump in Labor Costs
PHYSICAL CRUDE NEWS:
* ASIA: Adnoc Seen Keeping Murban OSP Unchanged; Demand View
* LATAM: Venezuela Exports at 5-Month High; Exxon in Guyana
* US/CANADA: Canadian Oil Supply to Grow Even in Worst Case
* NSEA: Johan Sverdrup Strike; Litasco Bids Troll
* MED: Shell Buys Urals, Azeri Light; Sarir Field Restarts
* WAF: Sonangol Cuts Offers; Doba Loadings Stable in Nov.
OIL PRODUCT NEWS:
* U.S.: Marathon SetsLayoffs, Brazil Taps Naphtha
* EUROPE: Air Traffic Drop; Mercuria Buys ULSD Cargo
* ASIA: Gasoline, Naphtha Provide Relief for Refiners
ECONOMIC EVENTS: (Times are London.)
* Bloomberg survey on OPEC’s September crude production
* Tanker tracking stories, covering September exports from major OPEC and some non-OPEC countries, will be published today and over the following days
* Singapore onshore oil-product stockpile weekly data
* Insights Global weekly report on European refined product inventories in ARA region
* China public holiday
ANALYST COLUMNS:
* Refiners May be Pushed to Lower Runs to Manage Diesel Glut: FGE
* Narrow WTI-Brent Weighs on U.S. Crude Export Outlook: Mizuho
* Shale Drillers See Risk of Permit Ban as Overblown, Citi Says
OTHER FINANCIAL MARKETS:
* Dollar Drops, Yuan Climbs Amid U.S. Stimulus Hopes: Markets Wrap
(News/data Bloomberg)
Singapore 380 INDIC
Nov20 244.75 / 246.75
Dec20 246.00 / 248.00
Jan21 247.50 / 249.50
Feb21 249.25 / 251.25
Mar21 251.00 / 253.00
Apr21 252.75 / 254.75
Q1-21 249.25 / 251.25
Q2-21 254.25 / 256.25
Q3-21 258.75 / 260.75
Q4-21 261.25 / 264.25
CAL21 254.75 / 260.75
Rotterdam 3.5% INDIC
Nov20 230.75 / 232.75
Dec20 231.25 / 233.25
Jan21 233.00 / 235.00
Feb21 234.50 / 236.50
Mar21 236.25 / 238.25
Apr21 238.00 / 240.00
Q1-21 234.50 / 236.50
Q2-21 239.50 / 241.50
Q3-21 242.50 / 244.50
Q4-21 243.25 / 246.25
CAL21 239.00 / 245.00
Singapore VLSFO 0.5% INDIC
Nov20 320.50 / 325.50
Dec20 319.50 / 324.50
Jan21 319.00 / 324.00
Feb21 319.50 / 324.50
Mar21 320.50 / 325.50
Apr21 321.50 / 326.50
Q1-21 319.75 / 324.75
Q2-21 322.50 / 327.50
Q3-21 325.75 / 331.75
Q4-21 329.50 / 335.50
CAL21 324.00 / 330.00
Rott VLSFO 0.5% INDIC
Nov20 301.50 / 306.50
Dec20 301.25 / 306.25
Jan21 301.75 / 306.75
Feb21 302.75 / 307.75
Mar21 304.00 / 309.00
Apr21 305.25 / 310.25
Q1-21 302.75 / 307.75
Q2-21 306.50 / 311.50
Q3-21 309.75 / 315.75
Q4-21 313.00 / 319.00
CAL21 307.75 / 313.75
Sing 10ppm GO INDIC
Nov20 45.66 / 45.80
Dec20 46.06 / 46.26
Jan21 46.48 / 46.68
Feb21 46.88 / 47.08
Mar21 47.29 / 47.49
Apr21 47.74 / 47.94
Q1-21 46.85 / 47.15
Q2-21 48.08 / 48.38
Q3-21 49.35 / 49.65
Q4-21 50.16 / 50.46
CAL21 48.55 / 48.95
ICE Gasoil 10ppm INDIC
Nov20 342.01 / 344.01
Dec20 345.60 / 347.60
Jan21 349.90 / 351.90
Feb21 354.09 / 356.09
Mar21 357.20 / 359.20
Apr21 360.62 / 362.62
Q1-21 353.75 / 355.75
Q2-21 362.73 / 364.73
Q3-21 373.70 / 375.70
Q4-21 379.21 / 381.21
CAL21 367.34 / 369.34