Brent crude was up 19 cents, or 0.5%, at $40.65 a barrel by 0324 GMT. WTI gained 15 cents, or 0.4%, at $38.71 a barrel. Both contracts fell more than 3% on Monday. Although oil was up this morning, there are still many unanswered questions regarding the extent of the relief package that will be agreed for the US economy in the wake of the devastating impact that the pandemic has had on growth.
A storm is brewing quite literally over the Caribbean Sea that is due to make its way over to the US Gulf, targeting the refining rich region. This has prompted the evacuation of oil rigs of many oil major refiners as the 27th storm of the year – named Zeta- is on course to batter the region with high winds as it develops into a hurricane. (Reuters)
BP announced that it had turned a profit in Q3, beating analysts’ expectations amidst a strengthening oil price, but refining margins weighed heavy on profits. (Reuters)
Indian has seen an uptick in demand for oil and products and as such refinery runs are increasing which has encouraged Indian oil purchases to increase, bringing some much welcome news for the oil market. More purchases have been made for December arrival in previous months, with the key driver being the 2 million barrels of WAF crude bought by the state. (S&P Global Platts)
South Korea are favoring the Saudi crude as it looks to take advantage of the medium crude as the most viable and economical feedstock in the current times of volatile refining margins and uncertain consumer demand as lockdowns in the northern hemisphere continue. (S&P Global Platts)
INDEX: (MTD Estimates)
* Sing 380: 251.79
* Rott 3.5%: 236.56
* Sing 0.5%: 321.55
* Rott 0.5%: 301.50
MARKETS NEWS:
• Libya Reopens Last Major Oil Field in Another Blow to OPEC+
• Zeta Becomes a Hurricane Menacing Mexico and U.S. Gulf Coast
• Conoco’s Oil Sands Loss Seen Getting Uplift From Cenovus Deal
• China Doubles U.S. Oil Purchases Ahead of Election: Details
• U.S. Gulf Shuts in 16% of Oil Production Ahead of Storm: BSEE
• U.S. Amends License For Iran’s Central Bank, Natl. Oil Co.
• U.S. Oil Drillers Cut 2021 Output Hedge Price by 25%: Rystad
• U.S. Gasoline Demand Drops 0.5% to 8.845m B/d: Descartes Labs
• Mexico, Private Companies Invest $6B in Oil Through August
OTHER NEWS:
• Japan Pledges Net-Zero Emissions by 2050 Without Clear Roadmap
• Japan’s Top Airline Confronts Hurdles in Sustainable Fuel Drive
• China Deliberates a Future That’s Crucial to Commodities Demand
• Fire, Snow, Hurricane Striking U.S. in Clash of Seasons
• Southern California Wildfire Rages With Winds Sweeping State
OIL PRODUCT NEWS:
• U.S.: Zeta Nears PADD 3 as Hurricane; Demand Down
• EUROPE: Preem Biofuel Plans; BP Lingen Work
• ASIA: Asia Rescues Oil Demand Growth; Clean Fuels
ECONOMIC EVENTS: (Times are London. )
• India Energy Forum, day 2; speakers include Finance Minister Nirmala Sitharaman, ONGC Chairman Shashi Shanker, Baker Hughes CEO Lorenzo Simonelli, Saudi Aramco Technology Strategy and Planning Director Bashir Dabbousi
• Singapore International Energy Week, day 2
• China policy plenum in Beijing, day 2
• API weekly oil inventory report, 4:30pm
Rotterdam 3.5% INDIC
Nov20 236.25 / 238.25
Dec20 232.50 / 234.50
Jan21 230.50 / 232.50
Feb21 230.00 / 232.00
Mar21 230.25 / 232.25
Apr21 230.25 / 232.25
Q1-21 230.25 / 232.25
Q2-21 230.25 / 232.25
Q3-21 230.25 / 232.25
Q4-21 229.25 / 232.25
CAL21 229.00 / 235.00
Singapore 380 INDIC
Nov20 247.75 / 249.75
Dec20 245.50 / 247.50
Jan21 244.75 / 246.75
Feb21 245.00 / 247.00
Mar21 245.50 / 247.50
Apr21 245.75 / 247.75
Q1-21 245.00 / 247.00
Q2-21 246.00 / 248.00
Q3-21 247.50 / 249.50
Q4-21 248.50 / 251.50
CAL21 244.75 / 250.75
Rott VLSFO 0.5% INDIC
Nov20 293.00 / 298.00
Dec20 291.25 / 296.25
Jan21 290.50 / 295.50
Feb21 291.00 / 296.00
Mar21 292.00 / 297.00
Apr21 293.25 / 298.25
Q1-21 291.25 / 296.25
Q2-21 294.50 / 299.50
Q3-21 298.25 / 304.25
Q4-21 300.50 / 308.50
CAL21 293.00 / 301.00
Singapore VLSFO 0.5% INDIC
Nov20 310.25 / 315.25
Dec20 309.75 / 314.75
Jan21 309.75 / 314.75
Feb21 310.25 / 315.25
Mar21 311.00 / 316.00
Apr21 312.00 / 317.00
Q1-21 310.25 / 315.25
Q2-21 313.25 / 318.25
Q3-21 317.00 / 323.00
Q4-21 320.50 / 328.50
CAL21 314.75 / 322.75
Sing 10ppm GO INDIC
Nov20 43.22 / 43.36
Dec20 43.76 / 43.96
Jan21 44.26 / 44.46
Feb21 44.74 / 44.94
Mar21 45.22 / 45.42
Apr21 45.72 / 45.92
Q1-21 44.69 / 44.99
Q2-21 46.14 / 46.44
Q3-21 47.44 / 47.74
Q4-21 48.29 / 48.59
CAL21 46.97 / 47.37
ICE Gasoil 10ppm INDIC
Nov20 325.04 / 327.04
Dec20 329.11 / 331.11
Jan21 333.57 / 335.57
Feb21 337.90 / 339.90
Mar21 341.53 / 343.53
Apr21 344.60 / 346.60
Q1-21 337.65 / 339.65
Q2-21 347.14 / 349.14
Q3-21 357.69 / 359.69
Q4-21 363.01 / 365.01
CAL21 354.11 / 356.11