Brent crude futures for December fell by 12 cents, or 0.3%, to $42.33 a barrel by 0455BST while U.S. WTI futures were down 11 cents, or 0.3%, to $40.09. Early morning interest this morning sees selling on high sulfur and buying on low sulfur, with the European and Singapore FoGos strengthening yesterday but some cooling off on the fuels and gasoil early today.
The increases in coronavirus cases are looking bleak for total fuel demand and as such, oil dropped yesterday morning as it is thought that economic growth could be affected into the winter as cases are yet to be under control. OPEC released its monthly oil outlook and the key points from this month’s edition was that the forecast for next year’s oil demand was revised down by 80,000 barrels per day as a result of the effect of COVID-19. (Reuters)
Crude oil production in the Gulf of Mexico was slowly increasing over the course of the week, with 69% shut on Monday, but this figure fell to only 44% on Tuesday as platforms begin to be restaffed as Hurricane Delta moved away from the region. (Reuters)
US shale production is expected to fall by 123,000 bpd in November in the biggest drop in production since May to roughly 7.69 million barley per day according to the EIA’s monthly forecast. Output is expected to drop for the third straight month. (Reuters)
The UAE energy minister quashed speculations over changes to the OPEC+ Cuts and reaffirmed that the agreement was signed to stick to production cuts, as rumours were circulation about the potential push back of output cuts. OPEC stated that China is the only country on course to a stable recovery from the virus, with oil demand slowly rising, but oil demand elsewhere remains bleak as lockdowns are still in force. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 242.48
* Rott 3.5%: 226.61
* Sing 0.5%: 320.29
* Rott 0.5%: 297.94
MARKETS NEWS:
* Mega-Refiner’s Oil Buying a Bright Spot for Constrained Market
* OPEC Sees Market for Its Crude Shrink Again as Rivals Recover
* Early morning buying activities on the VLSFO with selling on the HSFO
* EIA Sees U.S. Shale-Oil Falling 121K B/D to 7.69M B/D in Nov.
* Lower Midwest Gasoline Dips to 7-Week Low on Excess Blendstock
* U.S. Gulf Shuts 43.6% Oil Output After Hurricane Delta: BSEE
* Chevron CEO Sees ‘Shallow’ Shale Growth Curve After Price Crash
* Benchmark VLCC Rates Gain Again; U.S.-Europe Clean Tankers Dip
OTHER NEWS:
* ConocoPhillips Said to Be in Talks to Buy Concho Resources
* MeiDu Energy’s Texas Oil Gamble Goes Bankrupt After Seven Years
* Shale Patch Is Slightly Less Gloomy on Bank Lending in Survey
OIL PRODUCT NEWS:
* U.S.: NYC Gasoline Gains on Houston, Midwest Dips
* EUROPE: Total Buys Jet Cargo; Galp Refinery Halt
* ASIA: Floating Storage Drops; China Imports Climb
ECONOMIC EVENTS: (Times are London.)
* 9am: IEA releases monthly Oil Market Report
* 9:30pm: API weekly oil inventory report
* Day 2 of Energy Intelligence Forum; speakers include CEOs of Adnoc, Total and Shell
Singapore 380 INDIC
Nov20 249.25 / 251.25
Dec20 249.00 / 251.00
Jan21 249.25 / 251.25
Feb21 249.75 / 251.75
Mar21 250.25 / 252.25
Apr21 251.00 / 253.00
Q1-21 249.75 / 251.75
Q2-21 251.75 / 253.75
Q3-21 254.25 / 256.25
Q4-21 256.25 / 259.25
CAL21 253.25 / 256.25
Rotterdam 3.5% INDIC
Nov20 234.50 / 236.50
Dec20 234.00 / 236.00
Jan21 234.00 / 236.00
Feb21 234.50 / 236.50
Mar21 235.00 / 237.00
Apr21 235.75 / 237.75
Q1-21 234.50 / 236.50
Q2-21 236.50 / 238.50
Q3-21 238.25 / 240.25
Q4-21 238.25 / 241.25
CAL21 237.50 / 240.50
Singapore VLSFO 0.5% INDIC
Nov20 319.75 / 324.75
Dec20 318.00 / 323.00
Jan21 316.75 / 321.75
Feb21 316.50 / 321.50
Mar21 316.50 / 321.50
Apr21 317.00 / 322.00
Q1-21 316.75 / 321.75
Q2-21 318.00 / 323.00
Q3-21 321.00 / 327.00
Q4-21 324.50 / 330.50
CAL21 319.75 / 325.75
Rott VLSFO 0.5% INDIC
Nov20 299.50 / 304.50
Dec20 298.50 / 303.50
Jan21 298.00 / 303.00
Feb21 298.50 / 303.50
Mar21 299.25 / 304.25
Apr21 300.50 / 305.50
Q1-21 298.75 / 303.75
Q2-21 301.75 / 306.75
Q3-21 305.50 / 311.50
Q4-21 309.50 / 315.50
CAL21 303.75 / 309.75
Sing 10ppm GO INDIC
Nov20 45.34 / 45.48
Dec20 45.76 / 45.96
Jan21 46.20 / 46.40
Feb21 46.63 / 46.83
Mar21 47.06 / 47.26
Apr21 47.54 / 47.74
Q1-21 46.65 / 46.85
Q2-21 47.97 / 48.17
Q3-21 49.24 / 49.44
Q4-21 50.04 / 50.24
CAL21 48.37 / 48.77
ICE Gasoil 10ppm INDIC
Nov20 339.56 / 341.56
Dec20 344.11 / 346.11
Jan21 348.49 / 350.49
Feb21 353.02 / 355.02
Mar21 356.78 / 358.78
Apr21 359.78 / 361.78
Q1-21 352.75 / 354.75
Q2-21 362.24 / 364.24
Q3-21 372.99 / 374.99
Q4-21 380.66 / 382.66
CAL21 367.16 / 369.16
(Rott Hi5) Sing Hi5
Nov20 (65.47) 72.22
Dec20 (65.22) 70.72
Jan21 (64.97) 69.22
Feb21 (64.97) 68.47
Mar21 (65.47) 67.97
Apr21 (65.97) 67.72
Q1-21 (65.15) 68.55
Q2-21 (66.72) 67.97
Q3-21 (69.55) 69.13
Q4-21 (72.72) 70.22
CAL21 (68.00) 68.50