Brent crude was up 38 cents, or 0.8%, at $48.24 a barrel by 0616 GMT, having risen almost 4% in the previous session. WTI crude gained 27 cents, or 0.6%, to $45.18, after rising more than 4% on Tuesday. Levels are at the highest since March, where we entered 2020, in an already oversupplied oil market.
Iraq has been hit hard by the pandemic and the crash in oil prices, and so, the second largest OPEC producer is looking to strike up an oil agreement of forward payments over a five year period in response to falling oil revenues. Iraq will supply the taker of the contract with Basrah crude in a report cited by Reuters. (OilPrice.com)
Although three vaccines have emerged as successful in the fight against the coronavirus, they may not be readily available until later in the year in 2021, putting a recovery of travel on hold for a while until vaccinations have been rolled out to enough of the global population.
South Korea’s oil exports of refined products feel by 22.8% in October from a year earlier as Jet fuel dropped to the lowest level in 13 years. (S&P Global Platts)
Eyes will turn to the next OPEC meeting that is due to take place at the end of the month, on the discussion of how to progress over the current output quotas going into the new year. OPEC producers are set to increase production by 2 million barrels per day, or 2% of global oil demand in January 2021. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 270.69
* Rott 3.5%: 250.04
* Sing 0.5%: 334.74
* Rott 0.5%: 312.13
MARKETS NEWS:
* Oil Curve Flips Most Bullish in Months After Vaccine Rally
* China’s Haul of U.S. Crude and Corn Eyed for Trade Deal Progress
* API Reports U.S. Crude Stockpiles Rose 3.8M Bbl Last Week
* Oil Producers Will Lose Hedging Buoy Entering 2021: BNEF Chart
* Sudan to End Oil Production Contract of China’s CNPC by Year- End
* Thai Refiner Tipco Finishes Wind Down of Venezuela Oil Purchases
* China’s Oil Imports from Saudi Arabia and Russia Fell Last Month
* OIL DEMAND MONITOR: Gasoline’s Upswing Fizzles in U.S., U.K.
* Caribbean-U.S. Dirty Tankers Gain; Cross-Med Clean Vessels Rise
* Rep. of Congo Plans to Export 238k B/d of Djeno, N’Kossa in Jan.
OIL PRODUCT NEWS:
* U.S.: Demand Up, Along With Gasoline Stockpiles
* EUROPE: Total to Halt Donges; Tarragona; Kralupy
* ASIA: China’s Air Travel Boom; Vietnam’s Tax Cut
ECONOMIC DATA: (Times are London.)
* 3:30pm: EIA weekly U.S. oil inventory report
* 6pm: Baker Hughes weekly rig count report; moved to Wednesday instead of usual Friday release due to Thanksgiving holiday
* Genscape weekly ARA crude inventory report
* Russia crude-loading program for December
ANALYST VIEWS/COLUMNS:
* China’s Gasoline Exports May Gain 16% M/m in Dec. on Quota: JLC
* Bank of America Bullish on Oil in 2021 as Vaccine Spurs Optimism
* Vaccine Euphoria Not Discounting Logistics, Oil Fundamental View
OTHER FINANCIAL MARKETS:
* Stocks on Track for Record Month; Treasuries Dip: Markets Wrap
Rotterdam 3.5% INDIC
Dec20 272.50 / 274.50
Jan21 272.25 / 274.25
Feb21 271.75 / 273.75
Mar21 271.00 / 273.00
Apr21 270.00 / 272.00
May21 268.75 / 270.75
Q1-21 271.75 / 273.75
Q2-21 268.75 / 270.75
Q3-21 263.75 / 265.75
Q4-21 257.25 / 260.25
CAL21 265.00 / 268.00
Singapore 380 INDIC
Dec20 291.00 / 293.00
Jan21 288.25 / 290.25
Feb21 287.25 / 289.25
Mar21 286.50 / 288.50
Apr21 285.50 / 287.50
May21 284.50 / 286.50
Q1-21 287.50 / 289.50
Q2-21 284.50 / 286.50
Q3-21 280.75 / 282.75
Q4-21 276.25 / 279.25
CAL21 281.00 / 284.00
Rott VLSFO 0.5% INDIC
Dec20 342.25 / 347.25
Jan21 343.25 / 348.25
Feb21 343.75 / 348.75
Mar21 344.25 / 349.25
Apr21 344.75 / 349.75
May21 345.25 / 350.25
Q1-21 343.75 / 348.75
Q2-21 345.25 / 350.25
Q3-21 346.00 / 352.00
Q4-21 346.75 / 352.75
CAL21 345.00 / 351.00
Singapore VLSFO 0.5% INDIC
Dec20 366.25 / 371.25
Jan21 364.50 / 369.50
Feb21 363.75 / 368.75
Mar21 363.50 / 368.50
Apr21 363.50 / 368.50
May21 363.50 / 368.50
Q1-21 363.75 / 368.75
Q2-21 363.50 / 368.50
Q3-21 363.50 / 369.50
Q4-21 364.50 / 370.50
CAL21 363.50 / 369.50
Sing 10ppm GO INDIC
Dec20 52.70 / 52.84
Jan21 52.74 / 52.94
Feb21 52.96 / 53.16
Mar21 53.25 / 53.45
Apr21 53.54 / 53.74
May21 53.81 / 54.01
Q1-21 53.00 / 53.20
Q2-21 53.81 / 54.01
Q3-21 54.67 / 54.87
Q4-21 55.32 / 55.52
CAL21 54.10 / 54.50
ICE Gasoil 10ppm INDIC
Dec20 391.64 / 393.64
Jan21 395.16 / 397.16
Feb21 398.56 / 400.56
Mar21 400.85 / 402.85
Apr21 403.22 / 405.22
May21 405.43 / 407.43
Q1-21 398.20 / 400.20
Q2-21 405.44 / 407.44
Q3-21 411.77 / 413.77
Q4-21 416.51 / 418.51
CAL21 407.98 / 409.98
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