Brent crude futures dropped 32 cents, or 0.8%, to $42.30 a barrel by 0418 GMT, after falling 31 cents on Monday. WTI futures fell 26 cents, or 0.6%, to $40.57 a barrel, after losing 5 cents on Monday. Despite rises in early morning trading, Brent entered the morning European window still in negative territory.
Oil steadied through Monday as hopes of a vaccine were nearing which would potentially ease some lockdowns, trickling down into increased demand for fuels and oil with also a US stimulus package holding oil up over the day, albeit only slightly. Also from the US, Organizers for the final Trump V Biden debate will feature a mute button to allow candidates to speak, Thursday will be the last opportunity for the candidates to win crucial votes for office, with an average of polls giving Biden a slender lead.
Four straight days of losses for crude show the gloominess of the oil market as it look like increasing supply from Libya, faltering demand from China and increasing lockdowns and virus cases are depressing the oil market. COVID-19 cases stand at 40 million amidst a growing second wave. (Reuters)
Continuing with the American theme, ConocoPhillips has agreed a deal worth $9.7 billion to buy Shale oil producer Concho Resources to consolidate its supply chain as fuel and demand continues to fall. Concho Produces 319,000 bpd, which is the fifth largest producer by volume in the Permian Basin. (Reuters)
Saudi Crude exports rose for a second consecutive month in August from a record low in June figures from JODI. August figures posted 5.97 million bpd, up from 5.73 million bpd in July. Total output rose by 500,000 bpd to 8.98 million barrels per day in August. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 248.06
* Rott 3.5%: 233.35
* Sing 0.5%: 322.71
* Rott 0.5%: 301.35
MARKETS NEWS:
* Saudi Arabia Vows OPEC+ Will ‘Nip Negative Trends in the Bud’
* Oil, Gasoil off bringing the fuels off a touch from yesterday
* OPEC+ Agrees to Continue Output-Cuts Deal in Full, Novak Says
* OPEC+ Panel Didn’t Discuss Changes to Tapering Plan: Delegates
* Early HSFO interest in the market
* Low-Sulfur Fuel Oil Has Become a Bright Spot for Asian Refiners
* U.S. Gasoline Demand Snaps Four Weeks of Gains: Descartes
* U.S. Gasoline Imports From Europe Rebound; Jet Cargo: Customs
* Benchmark VLCCs Drop; Baltic-Europe Dirty Tankers Extend Gains
OTHER NEWS:
* Pioneer Said to Be in Talks to Buy Rival Shale Driller Parsley
* Alberta Exempts Oil Cos. From Property Taxes for New Wells
* 16 Oil, LNG Ships Wait to Transit Sabine Pass Amid Restrictions
OIL PRODUCT NEWS:
* ASIA: China Gasoline Stockpiles Shrink; Clean Flows
ECONOMIC EVENTS: (Times are London.)
* 9:30pm: API weekly oil inventory report
* Russia 10-day Urals loading program for November
* Nigeria loading programs for December crude exports released over next few days
* Iraq Petroleum conference, held virtually, 1st day of 2
* BNEF Summit in London, final day
* Citi Global Resources Virtual Conference, lasts through Oct. 21
(New/data, Blooomberg and FIS)
Singapore 380 INDIC
Nov20 258.25 / 260.25
Dec20 256.25 / 258.25
Jan21 255.50 / 257.50
Feb21 255.50 / 257.50
Mar21 255.75 / 257.75
Apr21 256.25 / 258.25
Q1-21 255.50 / 257.50
Q2-21 256.75 / 258.75
Q3-21 258.25 / 260.25
Q4-21 259.25 / 262.25
CAL21 255.00 / 261.00
Rotterdam 3.5% INDIC
Nov20 243.25 / 245.25
Dec20 240.25 / 242.25
Jan21 239.25 / 241.25
Feb21 239.75 / 241.75
Mar21 240.25 / 242.25
Apr21 240.75 / 242.75
Q1-21 239.75 / 241.75
Q2-21 241.25 / 243.25
Q3-21 242.25 / 244.25
Q4-21 242.00 / 245.00
CAL21 239.00 / 245.00
Singapore VLSFO 0.5% INDIC
Nov20 319.75 / 324.75
Dec20 318.75 / 323.75
Jan21 317.75 / 322.75
Feb21 317.50 / 322.50
Mar21 317.50 / 322.50
Apr21 317.75 / 322.75
Q1-21 317.50 / 322.50
Q2-21 318.50 / 323.50
Q3-21 321.50 / 327.50
Q4-21 325.25 / 331.25
CAL21 320.50 / 326.50
Rott VLSFO 0.5% INDIC
Nov20 298.75 / 303.75
Dec20 297.75 / 302.75
Jan21 297.25 / 302.25
Feb21 297.25 / 302.25
Mar21 298.00 / 303.00
Apr21 299.00 / 304.00
Q1-21 297.50 / 302.50
Q2-21 300.00 / 305.00
Q3-21 303.00 / 309.00
Q4-21 306.50 / 312.50
CAL21 301.50 / 307.50
Sing 10ppm GO INDIC
Nov20 45.12 / 45.26
Dec20 45.52 / 45.72
Jan21 45.97 / 46.17
Feb21 46.40 / 46.60
Mar21 46.83 / 47.03
Apr21 47.32 / 47.52
Q1-21 46.35 / 46.65
Q2-21 47.73 / 48.03
Q3-21 49.01 / 49.31
Q4-21 49.85 / 50.15
CAL21 48.19 / 48.59
ICE Gasoil 10ppm INDIC
Nov20 338.17 / 340.17
Dec20 341.76 / 343.76
Jan21 346.31 / 348.31
Feb21 350.68 / 352.68
Mar21 353.98 / 355.98
Apr21 357.58 / 359.58
Q1-21 350.30 / 352.30
Q2-21 360.04 / 362.04
Q3-21 370.79 / 372.79
Q4-21 379.68 / 381.68
CAL21 365.21 / 367.21
Rott Hi5 Sing Hi5
Nov20 57 63
Dec20 59 64
Jan21 59 64
Feb21 59 63
Mar21 59 63
Apr21 60 63
Q1-21 59 63
Q2-21 60 63
Q3-21 63 65
Q4-21 66 67
CAL21 62 65