Brent crude for December slipped 15 cents, or 0.4%, to $42.78 a barrel by 0405 GMT. WTI for November was at $40.70 a barrel, down 18 cents. The fall in oil was sparked by the smaller than expected rise in economic growth in China, with the underlying cause for concern being the increasing global coronavirus cases, which are impacting the largest oil importer.
Russia and Saudi Arabia came together this weekend to discuss the future plans for the oil market as officials from the cartel announced that 2021 could bring with it a weaker overall outlook than originally planned, sparking concerns throughout the industry. The outcome of the meeting will potentially see the greater compliance between the 2 nations with regards to oil output and strategy. One major problem that has seen oil being capped at the $45 per barrel mark is the Coronavirus pandemic, and the talks over the weekend hinted at Saudi Arabia potentially using the Russian developed vaccine. (Reuters)
S&P Global Platts report of the increasing number of mergers and acquisitions as independent refiners were struggling going into 2020, with the pandemic exacerbating problems as we saw a complete crash in the price back in April of this year. Following the Chevron and Noble merger, refiners will be able to take advantage of lower average costs of production, leading to sustained profit margins. (S&P Global Platts)
OPEC+ predict that there could even be oil surpluses as output from Libya continues to climb week on week, and increasing lockdowns threaten oil demand, with a worst-case scenario going into 2021 documenting surpluses of 200,000 barrels per day. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 246.93
* Rott 3.5%: 231.00
* Sing 0.5%: 322.42
* Rott 0.5%: 300.88
MARKETS NEWS:
* Russia, Saudi Step Up Oil Diplomacy Before OPEC+ Committee Meets
* Libya’s Zawiya Port to Load 3 Oil Cargoes of 600k Bbl in Oct.
* OPEC+ Sees Risk of 2021 Oil Surplus If Libya Jumps, Demand Fades
* ASIA-AMERICAS FUEL: Oct. Shipments Gain; Jet Exceeds Sept. Level
* Fuel Oil for Europe and Sing continue in Backwardation
* China’s Sept. Apparent Oil Demand Rises 4.4% Y/y
* Indian Guzzlers Are Back as Diesel Thirst Exceeds Year-Ago Level
* The front crack value continues to strengthen, valued at -4.60 this morning
* U.S. Oil Rig Count Up 12 to 205, Baker Hughes Says
OTHER NEWS:
* Aramco, Sabic to Reassess $20 Billion Crude-to-Chemicals Project
* Conoco Said to Near Concho Purchase in Year’s Biggest Oil Deal
* Keystone Opponents Fail to Block Permit Now, Fight Goes On
OIL PRODUCT NEWS:
* U.S.: Enbridge Line 3 Wins Ruling on Key Permit
* EUROPE: Mideast Flow Jumps; ARA Gasoline Stocks Dip
* ASIA: Indian Diesel Sales; BPCL Seeks LPG Suppliers
ECONOMIC EVENTS:
* The Joint Ministerial Monitoring Committee (JMMC), a small group of OPEC+ ministers, is due to meet virtually, to review compliance with pledged cuts
* BNEF Summit in London, on energy, finance and technology, includes executives from Shell, BP, Repsol, 1st day of 2
* Joint Organisations Data Initiative (JODI) publishes oil export data for August covering OPEC and non-OPEC nations
* EARNINGS: Halliburton, Woodside Petroleum Ltd.
Singapore VLSFO 0.5% INDIC
Nov-20 324.50 / 328.00
Dec-20 323.00 / 326.50
Jan-20 321.75 / 325.75
Feb-20 321.00 / 326.00
Mar-20 320.75 / 325.75
Apr-20 321.00 / 326.00
Q1-21 321.00 / 326.00
Q2-21 322.00 / 327.00
Q3-21 324.75 / 330.75
Q4-21 328.50 / 334.50
CAL21 323.75 / 329.75
Rott VLSFO 0.5% INDIC
Nov-20 304.75 / 308.25
Dec-20 303.50 / 307.00
Jan-20 302.50 / 306.50
Feb-20 302.00 / 307.00
Mar-20 302.75 / 307.75
Apr-20 303.75 / 308.75
Q1-21 302.25 / 307.25
Q2-21 304.75 / 309.75
Q3-21 307.75 / 313.75
Q4-21 311.25 / 317.25
CAL21 306.25 / 312.25
Sing 10ppm GO INDIC
Nov-20 45.71 / 45.87
Dec-20 46.11 / 46.27
Jan-20 46.49 / 46.69
Feb-20 46.91 / 47.11
Mar-20 47.34 / 47.54
Apr-20 47.78 / 47.98
Q1-21 46.92 / 47.12
Q2-21 48.13 / 48.53
Q3-21 49.36 / 49.76
Q4-21 50.15 / 50.55
CAL21 48.62 / 49.02
ICE Gasoil 10ppm INDIC
Nov-20 343.75 / 344.75
Dec-20 347.00 / 348.00
Jan-20 351.25 / 352.25
Feb-20 354.50 / 356.00
Mar-20 358.25 / 359.75
Apr-20 361.50 / 363.00
Q1-21 354.50 / 365.75
Q2-21 363.75 / 376.25
Q3-21 373.50 / 382.75
Q4-21 379.75 / 389.75
CAL21 367.75 / 370.75
Sing 380 cst INDIC
Nov-20 260.25 / 262.25
Dec-20 258.25 / 260.25
Jan-20 257.00 / 259.00
Feb-20 256.75 / 258.75
Mar-20 257.00 / 259.00
Apr-20 257.25 / 259.25
Q1-21 256.50 / 259.50
Q2-21 257.00 / 260.50
Q3-21 258.25 / 262.25
Q4-21 259.50 / 264.00
CAL21 257.25 / 262.25
Rotterdam 3.5% INDIC
Nov-20 244.50 / 246.50
Dec-20 242.00 / 244.00
Jan-20 241.00 / 243.00
Feb-20 241.00 / 243.00
Mar-20 241.25 / 243.25
Apr-20 241.50 / 243.50
Q1-21 240.50 / 243.50
Q2-21 241.00 / 244.50
Q3-21 241.50 / 245.50
Q4-21 241.25 / 245.75
CAL21 240.50 / 245.50
Sing hi5 Rdam hi5
Nov-20 65.00 61.00
Dec-20 66.00 62.00
Jan-20 66.00 63.00
Feb-20 66.00 63.00
Mar-20 65.00 63.00
Apr-20 65.00 64.00
Q1-21 66.00 63.00
Q2-21 66.00 65.00
Q3-21 68.00 67.00
Q4-21 70.00 71.00
Cal 21 67.00 66.00