Brent was down 46 cents, or 0.8%, at $55.96 by 0544 GMT, after gaining 0.6% on Thursday before falling to $55.56 at around 0600GMT. U.S. West Texas Intermediate crude was 29 cents, or 0.5%, lower at $53.28 a barrel, having risen more than 1% the previous session.
Global analysts see oil prices gaining over the course of the year as there is an expected 3.6% growth in oil demand on track for 2021 as the world slowly returns to some form of normality on the vaccine rollouts. It is yet to be seen whether the worst it still yet to come for the effect of the virus on population health, but there is growing optimism surrounding products such as gasoline and jet fuel, but gains are set to be capped by the rising crude inventories. (S&P Global Platts)
In the fuel oil market, The European fuel oil market saw the 0.5%S marine fuel oil crack gain further ground despite weaker demand in the region, sources said Jan. 14, amid continued low refinery runs thinning supply and demand from the East, making use of weaker freight rates. (S&P Global Platts)
On Jan. 5, Saudi energy minister Prince Abdulaziz bin Salman announced a surprise unilateral 1 million b/d production cut for the kingdom — about 10% of its current output — even as Russia, the least compliant member of the OPEC+ producing group, lobbied for and won an increase in its quota. Trading sources said many European buyers will see around 25-30% of monthly allocations cuts from Saudi Arabia, which will likely provide a large boost for other sour crude grades in the region, most notably Urals, which typically yields high amounts of 3.5%S fuel oil. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 323.57
* Rott 3.5%: 309.89
* Sing 0.5%: 420.77
* Rott 0.5%: 393.47
MARKETS NEWS:
* Iraqi Oil Minister Sees Oil Prices Staying at $55/Bbl in 1Q
* U.S. Blacklists Oil Giant Cnooc in Last-Ditch Anti-China Push
* Pacific Island Nation to Venezuela: That Oil Tanker Isn’t Ours
* U.S. May Begin 2021 SPR Crude Deliveries as Early as April
* Formosa Petrochemical Fails to Award Tender Seeking Sweet Crude
* Mideast-China Oil Supertanker Earnings Slump as Storage Unwinds
OTHER NEWS:
* Marubeni Said to Plan Sale of North Sea Oil and Gas Fields
* Trump’s EPA to Forgo Acting on Pending Refinery Biofuel Waivers
OIL PRODUCT NEWS:
* U.S.: Citgo Texas Refinery FCC Work to Last Weeks
* EUROPE: BP Buys More Diesel; ICE Gasoil Crack Rises
* ASIA: Cold Snap Spurs Fuel Oil, Naphtha Squeeze
ECONOMIC DATA: (Times are London.)
* 3pm: ConocoPhillips/Concho Resources shareholder meeting to approve merger
* Shanghai exchange weekly commodities inventory
* 6pm: Baker Hughes weekly rig count
* 6:30pm: ICE Brent positions
* 8:30pm: CFTC
Sing VLSFO 0.5% INDIC
Feb-21 426.75 / 429.75
Mar-21 424.25 / 427.25
Apr-21 422.25 / 426.25
May-21 421.00 / 425.00
Jun-21 420.00 / 424.00
Jul-21 418.50 / 423.50
Q2-21 420.75 / 425.75
Q3-21 417.50 / 422.50
Q4-21 414.25 / 420.25
Q1-22 412.25 / 418.25
CAL22 409.25 / 415.25
Rott VLSFO 0.5% INDIC
Feb-21 406.75 / 409.75
Mar-21 405.00 / 408.00
Apr-21 403.00 / 407.00
May-21 401.50 / 405.50
Jun-21 400.00 / 404.00
Jul-21 398.25 / 403.25
Q2-21 401.00 / 406.00
Q3-21 397.00 / 402.00
Q4-21 393.25 / 399.25
Q1-22 391.75 / 397.75
CAL22 390.75 / 396.75
Sing 10ppm GO INDIC
Feb-21 61.37 / 61.53
Mar-21 61.50 / 61.66
Apr-21 61.52 / 61.72
May-21 61.50 / 61.70
Jun-21 61.47 / 61.67
Jul-21 61.53 / 61.73
Q2-21 61.49 / 61.69
Q3-21 61.47 / 61.87
Q4-21 61.30 / 61.70
Q1-22 61.19 / 61.59
CAL22 61.29 / 61.69
ICE Gasoil 10ppm INDIC
Feb-21 460.00 / 461.00
Mar-21 461.50 / 462.50
Apr-21 462.25 / 463.25
May-21 462.25 / 463.75
Jun-21 462.75 / 464.25
Jul-21 463.75 / 465.25
Q2-21 462.25 / 466.00
Q3-21 464.00 / 466.00
Q4-21 463.25 / 465.25
Q1-22 462.25 / 464.50
CAL22 462.25 / 465.25
Sing 380 cst INDIC
Feb-21 323.75 / 325.75
Mar-21 324.75 / 326.75
Apr-21 324.25 / 326.25
May-21 323.00 / 325.00
Jun-21 320.75 / 322.75
Jul-21 318.25 / 320.25
Q2-21 322.00 / 325.00
Q3-21 315.00 / 318.50
Q4-21 307.00 / 311.00
Q1-22 300.50 / 305.00
CAL22 295.00 / 300.00
Rotterdam 3.5% INDIC
Feb-21 312.25 / 314.25
Mar-21 312.00 / 314.00
Apr-21 310.50 / 312.50
May-21 307.75 / 309.75
Jun-21 304.75 / 306.75
Jul-21 301.25 / 303.25
Q2-21 307.00 / 310.00
Q3-21 297.00 / 300.50
Q4-21 286.50 / 290.50
Q1-22 280.00 / 284.50
CAL22 274.25 / 279.25
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