Good morning all. Brent crude futures gained 9 cents or 0.2% to $39.92 per barrel, whereas the US WTI was up 18 cents or 0.5% to $37.51 per barrel as Storm sally prepares to for landfall in the US.
Last week was a rollercoaster of a ride for crude that was unable to firm up its position around the $40 mark, amidst OPEC member oversupply and non-compliance with quotas, and uncertainty surrounding demand factors in major economies such as China and the US as a result of the turbulent situation that is developing surrounding the coronavirus. This leads many people to question how the role of OPEC+ will change after the pandemic as it’s celebrates 60 since its formation.
The US daily coronavirus infection toll is down slightly, but worryingly global deaths due to the virus are approaching 1 million+ as India reports its Fourth consecutive day of 90k+ cases, and many other European countries finding the second spike, a reality which will further halt the expected recoveries of certain European economies which will see their borders locked off the rest of the world.
Hurricane season in the US is most certainly upon us as the Floridian coast is set to welcome its second weather system in a month that goes by the name of Sally. The hurricane is set to become a category 1 just as the Governor has announced a state of emergency as the region battles the coronavirus and recovering from the previous destruction caused by Hurricane Laura. Although the storm is not set to become as troublesome as Storm Laura, it will bring flash floods and high winds that is headed straight for the oil rich fields of the Gulf Coast according to Reuters.
This news accompanies that of the fall in oil and gas rigs in current operation high acts as a good indication of future output. Baker Hughes Co. announced the drop of 2 rigs on Friday up to the week of September 11th, this figure is 632 rigs or 71% below figures reported last year. Even though oil prices are down 38% since the start of the year, US crude futures have gained 100% over the past 5 months to $37 on Friday, on the back of relaxing lockdowns across the globe.
MARKETS NEWS:
* Flagging Asian Demand Sees Oil Sellers Brace for Price Battle
* Shanghai Exchange May Add More Grades for Futures: APPEC UPDATE
* Oil Demand Has Decade of Growth Before Steady Decline: Vitol
* OPEC+ Bid to Rescue Oil Market Falters as Demand Recovery Stalls
* Venezuela Defies Sanction Tripwires and Imports Iranian Oil
* Iraq Cuts October Crude Pricing to Asia, U.S. After Saudi Cuts
* Iran’s Oil Exports More Than Halved in Year Ending March 2020
* Murphy Evacuates Gulf Workers, Shuts Production Amid Storm Sally
* Fracking in the Shale Fields Slows for the First Time Since 2017
* Mideast Oil Tankers Surplus Set to Remain Above Seasonal Average
* UAE’s Breach of OPEC Output Pact Shakes Oil Traders’ Faith
OTHER NEWS:
* BP to Focus on Carbon Emissions Trading, Hydrogen Energy In Asia
* Australia Moves to Support Ailing Refiners, Boost Reserves
* Petronas Sees Need to Accelerate Investment in Renewables
PHYSICAL CRUDE NEWS:
* ASIA: Qatar, Kuwait Lower OSPs; More Long-Term Charters
* LATAM: Argentina Refinery Runs; Ancap Buys Qua Iboe
* US/CANADA: Inter Pipeline Eyes Bypass for Diluent Line
* NSEA: Equinor Sells Oseberg to Totsa; Troll Offered
* MED: CPC Oct. Loadings at 5-Mo. High; Azeri Supsa Program
* WAF: Ancap Buys Qua Iboe from Vitol; Bonga Heads to Canada
OIL PRODUCT NEWS:
* EUROPE: U.S. Tanker Diverts; Flow From Americas
* ASIA: Traffic Surge Adds to Mixed Outlook; Cnooc
* U.S.: Citgo Lake Charles Sees Restart in October
ECONOMIC EVENTS: (Times are London.)
* OPEC monthly market oil report
* 7pm: U.S. EIA releases monthly Drilling Productivity Report
** OIL WEEKLY AGENDA: OPEC+ Committee, IEA Monthly Report
ANALYST COLUMNS:
* Citi Sees Brent Oil Averaging $48/bbl in 4Q; $55/bbl in 2021
* Chinese Crude Imports to Recover From October: FGE
* There’s No Easy Fix to OPEC’s Whack-A-Mole Problem: Julian Lee
OTHER FINANCIAL MARKETS:
* Stocks, Futures Push Higher After Two-Week Slide: Markets Wrap
(Bloomberg Data/News)
Singapore 380 INDIC
Oct20 230.00 / 232.00
Nov20 231.25 / 233.25
Dec20 233.00 / 235.00
Jan21 235.25 / 237.25
Feb21 237.50 / 239.50
Mar21 239.75 / 241.75
Q4-20 231.50 / 233.50
Q1-21 237.50 / 239.50
Q2-21 244.00 / 246.00
Q3-21 248.50 / 251.50
CAL21 246.25 / 249.25
Rotterdam 3.5% INDIC
Oct20 218.50 / 220.50
Nov20 217.75 / 219.75
Dec20 218.00 / 220.00
Jan21 220.25 / 222.25
Feb21 222.25 / 224.25
Mar21 224.25 / 226.25
Q4-20 218.00 / 220.00
Q1-21 222.25 / 224.25
Q2-21 228.00 / 230.00
Q3-21 231.75 / 234.75
CAL21 229.25 / 232.25
Singapore VLSFO 0.5% INDIC
Oct20 295.50 / 300.50
Nov20 297.00 / 302.00
Dec20 299.00 / 304.00
Jan21 301.25 / 306.25
Feb21 303.50 / 308.50
Mar21 305.75 / 310.75
Q4-20 297.25 / 302.25
Q1-21 303.50 / 308.50
Q2-21 309.75 / 315.75
Q3-21 316.50 / 322.50
CAL21 312.75 / 318.75
Rott VLSFO 0.5% INDIC
Oct20 275.00 / 280.00
Nov20 277.25 / 282.25
Dec20 279.50 / 284.50
Jan21 282.50 / 287.50
Feb21 285.25 / 290.25
Mar21 288.00 / 293.00
Q4-20 277.25 / 282.25
Q1-21 285.25 / 290.25
Q2-21 292.50 / 298.50
Q3-21 299.00 / 305.00
CAL21 295.00 / 301.00
Sing 10ppm GO INDIC
Oct20 43.50 / 43.64
Nov20 44.02 / 44.22
Dec20 44.54 / 44.74
Jan21 45.07 / 45.27
Feb21 45.59 / 45.79
Mar21 46.13 / 46.33
Q4-20 44.00 / 44.20
Q1-21 45.60 / 45.80
Q2-21 47.12 / 47.32
Q3-21 48.47 / 48.67
CAL21 47.54 / 47.94
ICE Gasoil 10ppm INDIC
Oct20 326.09 / 328.09
Nov20 330.60 / 332.60
Dec20 334.97 / 336.97
Jan21 340.14 / 342.14
Feb21 345.29 / 347.29
Mar21 349.15 / 351.15
Q4-20 330.55 / 332.55
Q1-21 344.86 / 346.86
Q2-21 355.88 / 357.88
Q3-21 369.21 / 371.21
CAL21 361.81 / 363.81
Rott Hi5 Sing Hi5
Oct20 58 67
Nov20 61 67
Dec20 63 68
Jan21 64 68
Feb21 65 68
Mar21 65 68
Q4-20 61 67
Q1-21 65 68
Q2-21 67 68
Q3-21 69 70
CAL21 67 68