Good morning all. Brent crude futures for December dropped 44 cents, or 1.0%, to $42.72 a barrel by 0437 GMT, while WTI for November delivery fell 40 cents, or 1.0%, to $40.56 a barrel. Both Benchmarks are set to remain relatively unchanged for the week.
London now finds itself creeping slowly up the government’s watchlist as virus cases grow, but even with news of crude draws in the US, oil slipped 2% on Thursday as lockdowns loom in a bid to get Covid-19 under control until a vaccine can be produced.
Key news from Thursday was the larger than expected draws as a result of Hurricane Delta in the US as 91% of crude output was offline as the high winds battered the region, sparking the mass evacuation of platform workers. Draws were expected at 2.8 million barrels, but figures revealed 3.8 million barrels reduction in US inventories. Distillates reported a draw of 7.2 million barrel and crude output was down on average of 500,000 barrel per day to 10.5 million bpd. (Reuters)
OPEC+ went a little way in enforcing the supposed compensatory cuts due in August of 2.38 million barrels per day. September’s level of compensatory cuts stood at 2.33 million barrels per day. (Reuters)
What it is ensuring is that oil prices globally will not plunge in the same fashion that was seen back in Q2, and this will be the main objective of the meeting of OPEC+ at the end of November, as although fuel demand is recovering, it is so in a much slower way than previously expected. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 245.38
* Rott 3.5%: 229.45
* Sing 0.5%: 312.72
* Rott 0.5%: 300.00
MARKETS NEWS:
* China Tiptoes Back Into Oil Market, Buoyed by Demand Recovery
* Russian Oil Looks to Slash Drilling Even More Next Year
* EIA: Crude oil: -3.8M, Gasoline: -1.6M, Distillates: -7.2M, Refiner utilz: 75.1%
* Oil Trader Gunvor Says Extra OPEC Supply Would End Stock Draws
* U.S. Crude Stockpiles Decline on Hurricane Delta: EIA Takeaways
* Total Oil Stocks Including SPR Fall By Most Since 2011
* Colombia’s Top Oil Castilla Strengthens on China, India Appetite
* Second Oil Tanker Leaves Vancouver for China This Month
* Los Angeles Jet Fuel Climbs to 10-Week High This Week
* North Sea Crude Floating Storage Triples With Demand Still Weak
OTHER NEWS:
* Private Equity-Backed Shale Firms Seen Most at Risk of Collapse
* Zhoushan May Utilize Private Storage for Strategic Oil Reserves
* China Ethylene, PX Capacity to Be World’s Biggest by 2025: CPCIF
* Nigeria’s Oil Giant Pares Annual Loss After Slashing Costs
* Duterte Allows Oil Exploration to Resume in South China Sea
* Philippine Oil Stocks Soar as South China Sea Drilling to Resume
* Alberta Plans to Resume Oil and Gas Land Sales by Year-End
* Traders’ Oil Bets Get New Federal Limits Under CFTC Regulation
OIL PRODUCT NEWS:
* U.S.: U.S. EPA Sets Single Summer Gasoline Standard
* EUROPE: Saras Says 3Q Was Worst; U.K. Vehicle Use
* ASIA: S. Korea Refiner Won’t Lift Runs; Stockpiles
ECONOMIC EVENTS: (Times are London. )
* 6pm Baker Hughes U.S. Rig Count, period Oct 16
ANALYST COLUMNS:
* OPEC’s Ever-Deteriorating View of the Oil Market
* OIL MKT RESEARCH: HSBC on Refining Over-Capacity; FGE on China
(News/Data Bloomberg & FIS)
Singapore 380 INDIC
Nov20 257.75 / 259.75
Dec20 255.75 / 257.75
Jan21 254.75 / 256.75
Feb21 254.75 / 256.75
Mar21 254.75 / 256.75
Apr21 255.00 / 257.00
Q1-21 254.75 / 256.75
Q2-21 255.50 / 257.50
Q3-21 257.25 / 259.25
Q4-21 258.75 / 261.75
CAL21 254.75 / 257.75
Rotterdam 3.5% INDIC
Nov20 241.50 / 243.50
Dec20 239.25 / 241.25
Jan21 238.50 / 240.50
Feb21 238.75 / 240.75
Mar21 239.00 / 241.00
Apr21 239.25 / 241.25
Q1-21 238.75 / 240.75
Q2-21 239.75 / 241.75
Q3-21 240.50 / 242.50
Q4-21 240.25 / 243.25
CAL21 238.75 / 241.75
Singapore VLSFO 0.5% INDIC
Nov20 325.50 / 330.50
Dec20 324.00 / 329.00
Jan21 323.00 / 328.00
Feb21 322.25 / 327.25
Mar21 322.00 / 327.00
Apr21 322.25 / 327.25
Q1-21 322.50 / 327.50
Q2-21 323.00 / 328.00
Q3-21 325.75 / 331.75
Q4-21 329.50 / 335.50
CAL21 325.00 / 331.00
Rott VLSFO 0.5% INDIC
Nov20 303.75 / 308.75
Dec20 302.50 / 307.50
Jan21 301.50 / 306.50
Feb21 301.75 / 306.75
Mar21 302.50 / 307.50
Apr21 303.50 / 308.50
Q1-21 302.00 / 307.00
Q2-21 304.50 / 309.50
Q3-21 307.50 / 313.50
Q4-21 311.25 / 317.25
CAL21 306.00 / 312.00
Sing 10ppm GO INDIC
Nov20 45.94 / 46.08
Dec20 46.31 / 46.51
Jan21 46.71 / 46.91
Feb21 47.12 / 47.32
Mar21 47.54 / 47.74
Apr21 47.99 / 48.19
Q1-21 47.10 / 47.30
Q2-21 48.40 / 48.60
Q3-21 49.59 / 49.79
Q4-21 50.43 / 50.63
CAL21 48.79 / 49.19
ICE Gasoil 10ppm INDIC
Nov20 344.28 / 346.28
Dec20 347.68 / 349.68
Jan21 351.43 / 353.43
Feb21 355.36 / 357.36
Mar21 358.81 / 360.81
Apr21 361.63 / 363.63
Q1-21 355.20 / 357.20
Q2-21 364.02 / 366.02
Q3-21 374.63 / 376.63
Q4-21 383.47 / 385.47
CAL21 369.33 / 371.33
Rott Hi5 Sing Hi5
Nov20 64 69
Dec20 65 69
Jan21 65 69
Feb21 65 68
Mar21 66 68
Apr21 67 68
Q1-21 65 69
Q2-21 67 68
Q3-21 70 70
Q4-21 73 72
CAL21 68 70