Brent crude futures for January dropped $1.34, or 3.5%, to $36.60 a barrel by 0410 GMT, while U.S. WTI futures fell $1.41, or 3.9%, to $34.38. Brent ICE futures lost just under 10% for the week as the market looks to try to absorb increasing supply gluts.
Without the risk of sounding repetitive, the Coronavirus has taken a hold of most European countries and economies in the fact that most nations are experiencing a second wave of the virus that runs the risk of overwhelming hospitals and closing most non-essential businesses in a bid to try to reduce the rate of infection.
The increasing lockdowns have taken its toll on the oil market with many oil majors and producers already producing plans of job cuts in order to cut costs as the price of benchmarks are still depressed as supply is ramping up in nations such as Libya, and much of the USG production is back online after the closures caused by Hurricane Zeta.
The US Election is just a few hours away and it does in no way look like an easy one to call, with swing states mixed, but Biden sure to win the popular vote on current polling averages. It seems to be the turnout will be the highest in over a century with over 91 million postal votes already cast, meaning it is sure to go down to the wire on the result.
Libyan production has now reached 800,000 barrels per day according to reports from Reuters, over 100,000 barrels per day higher than just a few days ago. The blockage that was imposed for an eight-month period saw production in January slashed from 1.2 million bpd to just 100,000 bpd. Production is due to increase to 1 million bpd by mid-November. (Reuters)
INDEX: (Oct Month Averages)
* Sing 380: 250.62
* Rott 3.5%: 235.83
* Sing 0.5%: 318.48
* Rott 0.5%: 299.33
MARKETS NEWS:
* India’s Diesel Sales Expand for First Time in Eight Months
* Top Oil Trader Vitol Says Europe Lockdowns Mere ‘Speed Bump’
* Less than 48 Hours until the US Election day
* China Raises Non-State Crude Imports Quota to 243m Tons for 2021
* Oil Contango Deepens to Widest in a Month as Libya Output Surges
* U.S. August Gasoline Demand Down 13% From 2019 at 8.51M B/D: EIA
* Hedge Fund Managers Cut Net Bullish Brent, WTI Oil Bets
* U.S. Oil Rig Count Up 10 to 221, Baker Hughes Says
OTHER NEWS:
* Iraq Says Oil Revenue Covering Less Than Half of Govt Spending
* Exxon Warns of $30 Billion Shale Write down Decade After XTO
* Chevron Surprises With Profit Despite Dimming Outlook
* Reliance Beats Estimates Even as Poor Fuel Demand Hurts Profit
* European Leaders Driven to New Lockdowns by Surge in Virus
OIL PRODUCT NEWS:
* EUROPE: Mideast Flows at New High; Jet Hedging Loss
* U.S.: Paulsboro is Latest Casualty of Demand Slump
* ASIA: BP to Shut Australian Refinery; Tight Naphtha
ECONOMIC EVENTS: (Times are London)
* Bloomberg survey on OPEC’s October crude production
* Tanker tracking stories, covering October exports from major OPEC and some non-OPEC countries, will be published from Monday
* FT Commodities Asia Summit in Singapore, day 1, including Vitol CEO Russell Hardy and Trafigura CEO Jeremy Weir, among others
* EARNINGS: Marathon Petroleum Corp.
(Data/News FIS Bloomberg)
Rotterdam 3.5% INDIC
Dec20 209.25 / 211.25
Jan21 207.75 / 209.75
Feb21 208.00 / 210.00
Mar21 208.25 / 210.25
Apr21 208.75 / 210.75
May21 209.25 / 211.25
Q1-21 208.00 / 210.00
Q2-21 209.25 / 211.25
Q3-21 210.50 / 212.50
Q4-21 210.25 / 213.25
CAL21 209.75 / 212.75
Singapore 380 INDIC
Dec20 224.25 / 226.25
Jan21 222.75 / 224.75
Feb21 223.00 / 225.00
Mar21 223.25 / 225.25
Apr21 223.75 / 225.75
May21 224.25 / 226.25
Q1-21 223.00 / 225.00
Q2-21 224.25 / 226.25
Q3-21 226.25 / 228.25
Q4-21 227.75 / 230.75
CAL21 226.00 / 229.00
Rott VLSFO 0.5% INDIC
Dec20 260.25 / 265.25
Jan21 260.00 / 265.00
Feb21 261.25 / 266.25
Mar21 262.50 / 267.50
Apr21 264.00 / 269.00
May21 265.50 / 270.50
Q1-21 261.25 / 266.25
Q2-21 265.50 / 270.50
Q3-21 269.50 / 275.50
Q4-21 273.75 / 279.75
CAL21 267.25 / 273.25
Singapore VLSFO 0.5% INDIC
Dec20 277.25 / 282.25
Jan21 277.00 / 282.00
Feb21 277.50 / 282.50
Mar21 278.50 / 283.50
Apr21 280.00 / 285.00
May21 281.50 / 286.50
Q1-21 277.75 / 282.75
Q2-21 281.50 / 286.50
Q3-21 286.00 / 292.00
Q4-21 290.25 / 296.25
CAL21 283.50 / 289.50
Sing 10ppm GO INDIC
Dec20 39.35 / 39.49
Jan21 39.76 / 39.96
Feb21 40.20 / 40.40
Mar21 40.69 / 40.89
Apr21 41.20 / 41.40
May21 41.70 / 41.90
Q1-21 40.20 / 40.40
Q2-21 41.68 / 41.88
Q3-21 43.10 / 43.30
Q4-21 44.07 / 44.27
CAL21 42.17 / 42.57
ICE Gasoil 10ppm INDIC
Dec20 292.72 / 294.72
Jan21 296.86 / 298.86
Feb21 301.32 / 303.32
Mar21 305.82 / 307.82
Apr21 309.88 / 311.88
May21 313.40 / 315.40
Q1-21 301.35 / 303.35
Q2-21 313.57 / 315.57
Q3-21 324.34 / 326.34
Q4-21 338.49 / 340.49
CAL21 319.43 / 321.43
Rott Hi5/Sing Hi5
Dec20 52 54
Jan21 54 56
Feb21 55 56
Mar21 56 57
Apr21 57 58
May21 58 59
Q1-21 55 56
Q2-21 58 58
Q3-21 61 61
Q4-21 65 64
CAL21 59 59