Brent crude futures for January rose 19 cents, or 0.43%, to $43.94 a barrel by 0744 GMT, while U.S. West Texas Intermediate crude for December eased 3 cents, or 0.1%, to $41.40 a barrel by 0430 GMT. This rise has continued into the morning trading, with Brent pushing above $44.
API Predictions:
Crude +4.174
Cushing +0.176
Gasoline +0.256
Distillate -5.024
OPEC and its allies see oil inventories declining into 2021 should the supply cuts be extended into the new year, as opposed to relaxing them on January 1st, as current plans would allow. OPEC are meeting over the next few weeks to discuss the way in which producers continue output rates, with a document leaked stating its claim for the continued output cuts. (Reuters)
Crude stocks increased according to the latest API report by 4.2 million barrels, this was well above the analysts’ predictions of a build of only 1.7 million barrels.
Disappointing US retail sales also sparked concern as to the speed of the recovery from the pandemic devastation. With consumption lower than would have hoped, the case numbers continue to climb although the news of a vaccine had positive effects on the wider markets. (Reuters)
The UAE has achieved 126% compliance with output cuts set by OPEC in October, as it looked to compensate for earlier over production in August for August this year. The UAE produced 2.4 million barrels per day in October, with its quotas set at 2.59 million barrels per day. (S&P Global Platts)
Fujairah Fuel oil stocks have dropped to their lowest level in over two years according to data released from S&P Global Platts. The heavy distillate stocks fell to their lowest level, as a result of the strong bunkering industry that remained through the year as consumer spending on goods online kept the industry afloat. Stocks sank by 8.7% in the week to Monday, the lowest level since February 2019.
INDEX: (MTD Estimates)
* Sing 380: 264.92
* Rott 3.5%: 246.58
* Sing 0.5%: 327.61
* Rott 0.5%: 306.77
MARKETS NEWS:
* Oil From Russia to U.S. Gets Snapped Up in Asia Buying Binge
* WTI Export Cargoes Trading Higher on Asian Demand and Shale Cuts
* Last U.S. Oil Major in Venezuela Looks to Biden to Keep Foothold
* North Dakota Produced 1.222M B/D of Crude in Sept.: State
* API Reports U.S. Crude Stockpiles Rose 4.17M Bbl Last Week
* Rosneft Agrees to Sell 10% in Arctic Vostok Oil to Trafigura
* Caribbean-U.S. Dirty, Mideast-Japan Clean Tankers Extend Gains
* Libya to Ship at Least 808K B/D of Crude, Condensate Next Month
OTHER NEWS:
* World’s Biggest Oil Firm Saudi Aramco Sells $8 Billion in Bonds
* Keystone XL Gets Indigenous Investment With Hopes to Woo Biden
* Interior Approval of Conoco Drilling in Alaska Draws Lawsuit
OIL PRODUCT NEWS:
* U.S.: Rules on Carbon at Sea, Demand Down 5th Week
* EUROPE: Fawley Shuts CDU; Shell Buys ULSD Cargo
* ASIA: BPCL Purchases Term LPG; Lotte Buys Naphtha
ECONOMIC DATA: (Times are London.)
* 3:30pm: EIA weekly U.S. oil inventory report
* Genscape weekly ARA crude inventory report
* China October output data for base metals and oil products
* WoodMac virtual Energy Transition China Forum, day 2
* RBC Midstream and Energy Infrastructure Conference, day 1
ANALYST VIEWS:
* U.S. Shale Oil Output Seen Falling Up to 3% in 2021: Rystad
* Recovery for Gas Focused E&Ps Driven More by Oil Than Covid
* Vaccine News Not Enough to Allay Soft Near-Term Oil-Demand Risk
* India Oil Imports Match 2019 Level on Stronger Demand: Kpler
Rotterdam 3.5% INDIC
Dec20 249.75 / 251.75
Jan21 249.25 / 251.25
Feb21 248.75 / 250.75
Mar21 248.25 / 250.25
Apr21 247.50 / 249.50
May21 246.75 / 248.75
Q1-21 248.75 / 250.75
Q2-21 246.75 / 248.75
Q3-21 243.50 / 245.50
Q4-21 239.25 / 242.25
CAL21 244.50 / 247.50
Singapore 380 INDIC
Dec20 270.25 / 272.25
Jan21 266.25 / 268.25
Feb21 264.25 / 266.25
Mar21 263.00 / 265.00
Apr21 262.00 / 264.00
May21 261.00 / 263.00
Q1-21 264.50 / 266.50
Q2-21 261.00 / 263.00
Q3-21 258.50 / 260.50
Q4-21 256.50 / 259.50
CAL21 261.00 / 264.00
Rott VLSFO 0.5% INDIC
Dec20 317.00 / 322.00
Jan21 316.50 / 321.50
Feb21 316.75 / 321.75
Mar21 317.25 / 322.25
Apr21 318.00 / 323.00
May21 318.75 / 323.75
Q1-21 317.00 / 322.00
Q2-21 318.75 / 323.75
Q3-21 320.75 / 326.75
Q4-21 323.25 / 329.25
CAL21 319.75 / 325.75
Singapore VLSFO 0.5% INDIC
Dec20 341.00 / 346.00
Jan21 339.00 / 344.00
Feb21 338.00 / 343.00
Mar21 337.50 / 342.50
Apr21 337.50 / 342.50
May21 338.00 / 343.00
Q1-21 338.25 / 343.25
Q2-21 338.25 / 343.25
Q3-21 339.75 / 345.75
Q4-21 342.00 / 348.00
CAL21 339.25 / 345.25
Sing 10ppm GO INDIC
Dec20 48.23 / 48.37
Jan21 48.32 / 48.52
Feb21 48.58 / 48.78
Mar21 48.94 / 49.14
Apr21 49.30 / 49.50
May21 49.64 / 49.84
Q1-21 48.60 / 48.80
Q2-21 49.64 / 49.84
Q3-21 50.85 / 51.05
Q4-21 51.68 / 51.88
CAL21 50.10 / 50.50
ICE Gasoil 10ppm INDIC
Dec20 356.35 / 358.35
Jan21 360.81 / 362.81
Feb21 364.74 / 366.74
Mar21 367.63 / 369.63
Apr21 370.91 / 372.91
May21 374.14 / 376.14
Q1-21 364.40 / 366.40
Q2-21 374.10 / 376.10
Q3-21 382.83 / 384.83
Q4-21 389.50 / 391.50
CAL21 377.71 / 379.71
Rott Hi5 Sing Hi5
Dec20 69 72
Jan21 69 74
Feb21 70 75
Mar21 71 76
Apr21 72 77
May21 74 79
Q1-21 70 75
Q2-21 74 79
Q3-21 79 83
Q4-21 86 87
CAL21 77 80
The information provided in this communication is not intended for retail clients. It is general in nature only and does not constitute advice or an offer to sell, or the solicitation of an offer to purchase any swap or other financial instruments, nor constitute any recommendation on our part. The information has been prepared without considering your investment objectives, financial situation, or knowledge and experience. This material is not a research report and is not intended as such. FIS is not responsible for any trading decisions taken based on this communication. Trading swaps and over-the-counter derivatives, exchange-traded derivatives, and options involve substantial risk and are not suitable for all investors. You are advised to perform an independent investigation to determine whether a transaction is suitable for you. No part of this material may be copied or duplicated in any form by any means or redistributed without our prior written consent. Freight Investor Services Ltd (FIS) is authorised and regulated by the Financial Conduct Authority (FRN: 211452) and is a member of the National Futures Association (“NFA”). Freight Investor Services PTE Ltd (‘FIS PTE’) is a private limited company, incorporated and registered in Singapore with company number 200603922G, and has subsidiary offices in India and Shanghai. Freight Investor Solutions DMCC (‘FIS DMCC’) is a private limited company, incorporated and registered in Dubai with company number DMCC1225. Further information about FIS including the location of its offices can be found on our website at www.freightinvestorservices.com