Brent crude futures rose 4 cents to $41.76 a barrel while U.S. WTI futures inched up 4 cents to $39.47 a barrel at 0448 GMT. Early trading saw buying interest in HSFO. With a slight increase in Brent, fuel prices have also responded up around $1 on HSFO and $3 on 0.5% above Europe COB.
Oil prices are under pressure from a variety of factors this week, namely the rising coronavirus cases in the northern hemisphere and the increasing supply levels from Libya and other OPEC countries, causing concerns for OPEC and the strategy it looks to employ towards the end of the year regarding cuts. Increases to Libya’s total output has seen global levels increase by as much as 0.3% in a very short time frame, said an analyst at Commonwealth Bank commodities reported.
The IEA have come out and said that the pandemic threatens a delay in the rebound of total oil demand, which may not bounce back until 2025. The ideal scenario outlined would see the economy and demand bounce back by 2023 if a vaccine is approved by 2021, but under a delay recovery scenario, this could be pushed back for another 2 years. (Reuters)
Further, The IEA have also stated that oil demand is set to plateau, not decline after 2040, after fears that the pandemic has caused a mass selloff of oil in a shift towards greener and renewable energies. The world’s oil demand is set to reach 104.1 million barrels per day in 2040, up from 97.9 in 2019. (S&P Global Platts)
In bunker news, OPEC have released news that zero-carbon fuels are not expected to have any impact on the bunker demand until at least 2045, in its edition of the world oil outlook 2025. Other alternatives include the use of hydrogen, ammonia and electricity for sources of maritime transport. Given that vessel turnover is relatively small, these new fuels are unlikely to have any material impact on the use of current bunkers in the shipping sector. (Ship and Bunker)
INDEX: (MTD Estimates)
* Sing 380: 241.48
* Rott 3.5%: 225.56
* Sing 0.5%: 319.66
* Rott 0.5%: 296.84
MARKETS NEWS:
* Crude Inches up in Price
* Fuel Oil Also Increases Slightly
* China Sept. Crude Oil Imports 48.482m Tons: Customs
* Libya Reopens Biggest Oil Field, Giving OPEC+ a New Headache
* U.S. Weekly Imports of European Gasoline Slump to Multi-Year Low
* Shell Ramping Up Output for 2 GOM Crude Platforms After Delta
* Oil Mixed on Supply-side worries but up this morning
* October ICE Gasoil Deliveries Slide to 155.5K Tons
* U.S. Gasoline Demand Fell 0.5% Last Week: GasBuddy
* Benchmark VLCC Rates Rise; Mideast-Japan Clean Tankers Decline
* BHP Could Restart 2 U.S. Gulf Oil Platforms Wednesday After Storm
OTHER NEWS:
* Trafigura Sends Geneva Oil Traders Home After Covid Positives
* Arrival of Seized Iranian Fuel in New Jersey Spurs Legal Battle
* France to End Oil Project Export Guarantees From 2025, Gas Later
OIL PRODUCT NEWS:
* U.S.: Phillips 66, Citgo Set to Restart Refineries
* EUROPE: Fuel Flow to U.S. Slumps; Saras Run Cuts
* ASIA: Diesel Losing Edge in India; Clean-Fuel Flows
ECONOMIC DATA/EVENTS:
* Energy Intelligence Forum (virtual), 1st day of 3; speakers include oil ministers from Nigeria and UAE, and CEOs of Saudi Aramco and Chevron
* OPEC Monthly Oil Market Report
* EIA releases monthly Drilling Productivity Report
Rotterdam 3.5% INDIC
Nov20 231.25 / 233.25
Dec20 231.25 / 233.25
Jan21 232.00 / 234.00
Feb21 233.00 / 235.00
Mar21 234.00 / 236.00
Apr21 235.00 / 237.00
Q1-21 233.00 / 235.00
Q2-21 236.00 / 238.00
Q3-21 238.25 / 240.25
Q4-21 239.00 / 242.00
CAL21 235.25 / 241.25
Singapore 380 INDIC
Nov20 245.75 / 247.75
Dec20 246.00 / 248.00
Jan21 246.75 / 248.75
Feb21 248.00 / 250.00
Mar21 249.00 / 251.00
Apr21 250.00 / 252.00
Q1-21 247.75 / 249.75
Q2-21 251.00 / 253.00
Q3-21 254.25 / 256.25
Q4-21 256.50 / 259.50
CAL21 250.50 / 256.50
Rott VLSFO 0.5% INDIC
Nov20 297.00 / 302.00
Dec20 296.25 / 301.25
Jan21 296.00 / 301.00
Feb21 297.00 / 302.00
Mar21 298.00 / 303.00
Apr21 299.25 / 304.25
Q1-21 297.00 / 302.00
Q2-21 300.75 / 305.75
Q3-21 304.75 / 310.75
Q4-21 307.75 / 315.75
CAL21 303.75 / 311.75
Singapore VLSFO 0.5% INDIC
Nov20 318.00 / 323.00
Dec20 316.25 / 321.25
Jan21 315.00 / 320.00
Feb21 314.75 / 319.75
Mar21 315.00 / 320.00
Apr21 315.75 / 320.75
Q1-21 315.00 / 320.00
Q2-21 316.75 / 321.75
Q3-21 320.50 / 326.50
Q4-21 323.25 / 331.25
CAL21 320.50 / 328.50
Sing 10ppm GO INDIC
Nov20 45.54 / 45.68
Dec20 45.95 / 46.15
Jan21 46.38 / 46.58
Feb21 46.80 / 47.00
Mar21 47.23 / 47.43
Apr21 47.69 / 47.89
Q1-21 46.75 / 47.05
Q2-21 48.05 / 48.35
Q3-21 49.31 / 49.61
Q4-21 50.16 / 50.46
CAL21 48.88 / 49.28
ICE Gasoil 10ppm INDIC
Nov20 340.01 / 342.01
Dec20 344.36 / 346.36
Jan21 348.66 / 350.66
Feb21 352.82 / 354.82
Mar21 356.40 / 358.40
Apr21 359.33 / 361.33
Q1-21 352.65 / 354.65
Q2-21 361.72 / 363.72
Q3-21 372.42 / 374.42
Q4-21 378.81 / 380.81
CAL21 369.23 / 371.23