Morning Oil Report 22/10/20

Brent crude futures retreated 22 cents, or 0.5%, to $41.51 a barrel at 0328 GMT after sliding 3.3% on Wednesday. WTI crude futures fell 26 cents, or 0.7%, to $39.77 a barrel, after dropping 4% on Wednesday. The falling prices could be attributed to the worse than expected data from the EIA on Wednesday, with a 1.9 million barrel build in gasoline which is 1.6% above the 5-year average.

 

Today marks the final US debate happening between Trump and Biden in the race for the White House, with the host having the ability to mute microphones throughout the course of the event. Coronavirus cases in the US are mounting, as they are in the UK which is not boding well for fuel demand globally. (Reuters)

 

ExxonMobil are very close to disclosing the extent of job cuts over the next few days according to its CEO, as it battles with falling revenues and a market value loss of $1.7 billion in the first half of this year. The stock is trading at an 18-year low and the 20% loss in demand of oil has taken its toll on the company who looks to restructure. (Reuters)

 

Gasoline demand look very soft as the build comes as refineries were producing reduced outputs as a result of Hurricane Delta, analysts has predicted a 1.8 million barrel draw with the figures released, very bearish even though there was a crude draw of just over a million barrels. (S&P Global Platts)

 

A weaker dollar, rising inflation and demand driven by additional fiscal and monetary stimulus will spark the beginning of a bull market for commodities in 2021 according to Goldman Sachs, with inflation being the key cause for concern over the next few months. (Reuters)

 

INDEX: (MTD Estimates)

* Sing 380: 249.91

* Rott 3.5%: 234.35

* Sing 0.5%: 322.58

* Rott 0.5%: 301.40

 

MARKETS NEWS:
* Nigeria to Cut Oil Exports of Escravos to 123k B/D in December
* North Sea Oil Market Slumps and Traders Look to Asia for Relief
* Venezuela’s PDVSA Plans to Set 2021 Output Goal of 1.8M B/D
* South Korean Refiner Buys Brazil’s Tupi Crude for Jan. Arrival
* A Budding Recovery in West Coast Flight Traffic Is Good for Oil
* EIA: Crude -1,002k Bbl, Median Est. -1,375k Bbl
* Canadian Oil Cos. Restore 700K B/D of Production That Was Shut
* Benchmark VLCCs Steady; Europe-West Africa Clean Tankers Fall

OTHER NEWS:
* More Diesel in Ship Fuel Raising Risk It Could Turn Into Sludge
* PDVSA Plans to Offload Oil From Listing Vessel to Avert Spill
* Brazil Oil Junior Enauta Hunting for Deals During Down Market
* Pioneer-Parsley Merger Will Make CEO’s Son a Top Shareholder

ECONOMIC EVENTS: (Times are London.)
* Singapore onshore oil-product stockpile weekly data
* Insights Global weekly report on European refined product inventories in ARA region
* EARNINGS: Neste Oyj, Valero Energy Corp.

ANALYST COLUMNS:
* Commodities Moving Toward Structural Bull Market: Goldman Sachs
* Heavy Oil Scarcity to Boost Canadian Oil-Sands Prices Next Year
* Libyan Oil-Export Rise Appears to Be From Storage Draws: Kpler
* Global Diesel Market Showing Pockets of Strength: Energy Aspects

 

Singapore 380 INDIC                                     

Nov20   253.25   /             255.25

Dec20    251.50   /              253.50

Jan21     251.25   /             253.25

Feb21    251.25   /             253.25

Mar21   251.50   /             253.50

Apr21    251.75   /             253.75

Q1-21    251.50   /             253.50

Q2-21    252.25   /             254.25

Q3-21    253.75   /             255.75

Q4-21    254.50   /             257.50

CAL21    252.75   /             255.75

 

Rotterdam 3.5% INDIC                                 

Nov20   241.75   /             243.75

Dec20    238.25   /             240.25

Jan21     236.50   /             238.50

Feb21    236.25   /             238.25

Mar21   236.25   /             238.25

Apr21    236.50   /             238.50

Q1-21    236.50   /             238.50

Q2-21    236.75   /             238.75

Q3-21    237.25   /             239.25

Q4-21    236.75   /             239.75

CAL21    236.50   /             239.50

 

Rott VLSFO 0.5% INDIC                                 

Nov20   294.25   /              299.25

Dec20    293.25   /              298.25

Jan21     293.25   /              298.25

Feb21    294.00   /              299.00

Mar21   295.00   /              300.00

Apr21    296.25   /              301.25

Q1-21    294.25   /              299.25

Q2-21    297.75   /              302.75

Q3-21    301.50   /              307.50

Q4-21    305.50   /              311.50

CAL21    299.50   /              305.50

 

Singapore VLSFO 0.5% INDIC                                     

Nov20   313.00   /              318.00

Dec20    312.50   /              317.50

Jan21     312.50   /              317.50

Feb21    313.00   /              318.00

Mar21   313.75   /              318.75

Apr21    314.75   /              319.75

Q1-21    313.25   /              318.25

Q2-21    316.00   /              321.00

Q3-21    319.75   /              325.75

Q4-21    324.00   /              330.00

CAL21    318.00   /              324.00

 

Sing 10ppm GO INDIC                                   

Nov20   44.20     /              44.34

Dec20    44.63     /              44.83

Jan21     45.11     /              45.31

Feb21    45.59     /              45.79

Mar21   46.07     /              46.27

Apr21    46.55     /              46.75

Q1-21    45.60     /              45.80

Q2-21    47.01     /              47.21

Q3-21    48.34     /              48.54

Q4-21    49.21     /              49.41

CAL21    47.44     /              47.84

 

ICE Gasoil 10ppm INDIC                               

Nov20   330.80   /              332.80

Dec20    335.28   /              337.28

Jan21     339.82   /              341.82

Feb21    344.40   /              346.40

Mar21   348.33   /              350.33

Apr21    351.48   /              353.48

Q1-21    344.20   /              346.20

Q2-21    354.18   /              356.18

Q3-21    365.40   /              367.40

Q4-21    372.25   /              374.25

CAL21    359.00   /              361.00

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