Brent crude fell 30 cents, or 0.5%, to $54.79 a barrel by 0622 GMT, after dropping 2.3% on Friday. U.S. oil was down by 21 cents, or 0.4%, at $52.15 a barrel, having declined 2.3% in the previous trading session. “The Relative Strength Indexes (RSI’s) on both contracts were in overbought territory, indicating a correction was on its way,” said Jeffrey Halley, senior market analyst at OANDA. (Reuters)
Oil prices are softening as the increased prevalence of the virus takes hold in many European economies as well as increasing counts of cases in Asia which has oil market participants cautious. This is partnered with the looming inauguration of the new President of the United States, in which Joe Biden is set to be sworn into office, which many are hoping are for a peaceful transfer of power after the events of rioting for which Trump was impeached for earlier in January.
Further to North Asian markets like Japan and South Korea stepping up imports of low sulphur fuel oil to meet incremental domestic utility demand amid a cold snap, demand for high sulphur fuel oil as a burning fuel has remained firm from the Middle East and South Asia.
A resurgence in demand for LSFO as a burning fuel has also come at a time when both buyers and sellers are in the midst of looking to pile on product after de-stocking for the financial year end in December. Current steady demand from the end-user low sulphur marine fuels market, especially from buyers that have inked contracts for January supply, if not so much from the spot market, has also bolstered market sentiment. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 323.89
* Rott 3.5%: 309.70
* Sing 0.5%: 422.05
* Rott 0.5%: 394.10
MARKETS NEWS:
* India’s Fuel Demand Makes Shaky Start to 2021 With Fading Sales
* Libya’s Oil Output Drops as Pipelines Creak From War and Neglect
* Grounded Flights Are Sending U.S. Jet Fuel Prices Sliding Again
* Oil Tankers Bound for Chinese Ports Jump to New Five-Month High
* Usually Placid LPG Market Roiled by Frigid Winter and Saudi Cuts
* Singapore Dec. Non-Oil Exports to China -24.6% Y/y; By Country
* China’s Dec. Apparent Oil Demand Rises 2.3% Y/y
OTHER NEWS:
* Oil-Rich Abu Dhabi Targets Hydrogen as Future Export Fuel
* Idemitsu’s CEO Pledges to Halt New Investment in Coal Mines
* Keystone XL Commits to Be Fully Powered by Renewable Energy
* Californians Face Unprecedented Fire Blackouts in January
OIL PRODUCT NEWS:
* ASIA: MRPL Offers Naphtha, Diesel; Lotte Buys Cargo
* U.S.: Citgo Texas Refinery FCC Work to Last Weeks
* EUROPE: BP Buys More Diesel; ICE Gasoil Crack Rises
ECONOMIC DATA/EVENTS: (Times are London.)
* China second batch of December trade data, including breakdown for oil products
* Angola preliminary crude-loading program for March may emerge
* HOLIDAY: U.S. (Martin Luther King, Jr. Day); most CME energy trading halts at 6pm, resumes at 11pm
ANALYST VIEWS/COLUMNS:
* Bernstein Sees Global Mobility Starting to Improve From 2Q 2021
* IMO 2020 Fuel Oil Floating Near Singapore Rises 0.5% W/w: Kpler
Sing VLSFO 0.5% INDIC
Feb-21 425.25 / 428.25
Mar-21 422.50 / 425.50
Apr-21 420.25 / 424.25
May-21 418.75 / 422.75
Jun-21 417.50 / 421.50
Jul-21 415.75 / 420.75
Q2-21 418.25 / 423.25
Q3-21 414.50 / 419.50
Q4-21 411.00 / 417.00
Q1-22 408.75 / 414.75
CAL22 405.75 / 411.75
Rott VLSFO 0.5% INDIC
Feb-21 403.25 / 406.25
Mar-21 401.50 / 404.50
Apr-21 399.50 / 403.50
May-21 398.00 / 402.00
Jun-21 396.50 / 400.50
Jul-21 394.75 / 399.75
Q2-21 397.50 / 402.50
Q3-21 393.50 / 398.50
Q4-21 389.75 / 395.75
Q1-22 388.25 / 394.25
CAL22 387.00 / 393.00
Sing 10ppm GO INDIC
Feb-21 60.76 / 60.92
Mar-21 60.88 / 61.04
Apr-21 60.94 / 61.14
May-21 60.93 / 61.13
Jun-21 60.91 / 61.11
Jul-21 60.98 / 61.18
Q2-21 60.90 / 61.10
Q3-21 60.87 / 61.27
Q4-21 60.80 / 61.20
Q1-22 60.71 / 61.11
CAL22 60.82 / 61.22
ICE Gasoil 10ppm INDIC
Feb-21 455.00 / 456.00
Mar-21 456.75 / 457.75
Apr-21 457.50 / 458.50
May-21 457.50 / 459.00
Jun-21 458.25 / 459.75
Jul-21 459.25 / 460.75
Q2-21 457.75 / 461.50
Q3-21 459.50 / 462.00
Q4-21 459.25 / 461.75
Q1-22 458.75 / 461.50
CAL22 459.00 / 462.00
Sing 380 cst INDIC
Feb-21 319.50 / 321.50
Mar-21 320.50 / 322.50
Apr-21 320.25 / 322.25
May-21 318.75 / 320.75
Jun-21 316.75 / 318.75
Jul-21 314.50 / 316.50
Q2-21 318.25 / 321.25
Q3-21 311.25 / 314.75
Q4-21 303.50 / 307.50
Q1-22 297.00 / 301.50
CAL22 291.50 / 296.50
Rotterdam 3.5% INDIC
Feb-21 307.25 / 309.25
Mar-21 307.25 / 309.25
Apr-21 306.00 / 308.00
May-21 303.25 / 305.25
Jun-21 300.25 / 302.25
Jul-21 296.75 / 298.75
Q2-21 302.75 / 305.75
Q3-21 292.50 / 296.00
Q4-21 282.00 / 286.00
Q1-22 275.75 / 280.25
CAL22 270.00 / 275.00
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