Good morning!
Brent crude was up 27 cents or 0.6% at $43.57 a barrel with the WTI futures gaining 23 cents or 0.6% to $41.20 a barrel.
The main news of the week centred around the OPEC meeting on Thursday and how that would shape the oil production for the rest of the year. We learnt that quotas were staying the same at 8% reduction in total supply, or 7.7 million barrels, yet calls from the bigger OPEC members were aimed as those who were non-compliant in the period of June to September and suggested cuts through the end of the year to ensure that average compliance is met. This news followed that of oil prices gaining 10% since the start of the week as Goldman Sachs estimates the market is in deficit and a new storm is starting to build in the Gulf of Mexico. The bank also went on to predict prices towards the end of the year being at $49 a barrel, with the end of Q3 2021 looking at levels of around $65. (Reuters, S&P Global Platts)
Further to the OPEC+ meeting, the Saudi energy minister warned traders on Thursday against betting heavy on the oil market as he looks to make it ‘jumpy’ and that anyone who does will ‘hurt like hell’, with OPEC being pro-active and pre-emptive towards the challenges the oil market currently faces. (Reuters)
General market sentiment is bullish as we end the week, as Saudi exports rebound from historic lows in June of 4.98 million bpd to 5.73 million bpd in July, with easing of some global lockdowns and supply being held stable helping to keep the prices of the benchmarks at the $40 mark. The OPEC+ meeting of Thursday meant that markets continued to price in a commitment of OPEC nations to the quotas set, which has a positive effect on the price of crude for the time being. (S&P Global Platts)
MARKETS NEWS:
* Global Oil Demand Seen Recovering in Full in 2Q 2021: Novak
* UAE Will Fully Meet Its OPEC+ Commitment This Month: Minister
* OPEC+ Producers Compliance for Aug. Reached 102%: Iraqi Oil
Min.
* OPEC+ Panel Emphasizes Need to Be Proactive in Uneven Recovery
* Libya’s NOC Says Oil Industry Can’t Be Political Bargaining
Chip
* Saudi Direct Crude Burn in July Hits Highest Since 2017: JODI
* Pemex Sees Plunge in Oil Exports to Supply AMLO’s Refinery
* Surging Singapore Fuel Stockpiles Highlight Demand Woes: Chart
* Covid-19 Has Sidelined Enough Fuel to Power a Million Pickups
* Diesel Crashes to Low in Europe, Piling Pressure on Refiners
OTHER NEWS:
* Oil Titans Mulling Arctic Drilling Targeted by Activist Groups
* U.S. Seeks Stricter Funding for Abandoned Offshore Oil Wells
PHYSICAL CRUDE NEWS:
* ASIA: Fuji Oil Buys Oman; Iraq Exports More Oil in Sept.
* LATAM: Pemex’s Maya Exports; Lula Oil Field is Tupi Now
* US/CANADA: U.S. Gulf Shuts 31% Oil Production for Sally
* NSEA: Mercuria Bids Troll, Forties; Asia Arbitrage Choked
* MED: Tupras Buys Basrah Heavy From Litasco; Storm Alert
* WAF: Angola to Cut Oil Exports to 1.18M B/d in Nov.; OPEC+
OIL PRODUCT NEWS:
* U.S.: Virus Sidelines Fuel for 1 Million Pickups
* EUROPE: Diesel Crashes; Stockpiles Swell in ARA
* ASIA: Singapore Lights Stockpiles at Record High
ECONOMIC DATA/EVENTS: (Times are London.)
* 6:00pm: Baker Hughes U.S. Rig Count
* 6:30pm: ICE Commitments of Traders report
* 8:30pm: CFTC Commitments of Traders report
** See OIL WEEKLY AGENDA for next week’s events
ANALYST VIEWS/COLUMNS:
* Oil Market to Be in Deficit of 3M B/d in 4Q, Goldman Sachs
Says
* ARA Gasoil Stockpiles at 13-Month High on Weak Rhine Flows: IG
OTHER FINANCIAL MARKETS:
* Stocks Struggle for Traction; Dollar Steadies: Markets Wrap
Rotterdam 3.5% INDIC
Oct20 239.75 / 241.75
Nov20 239.50 / 241.50
Dec20 239.75 / 241.75
Jan21 241.50 / 243.50
Feb21 243.25 / 245.25
Mar21 245.00 / 247.00
Q4-20 239.50 / 241.50
Q1-21 243.25 / 245.25
Q2-21 248.25 / 250.25
Q3-21 251.00 / 254.00
CAL21 246.75 / 249.75
Singapore 380 INDIC
Oct20 253.25 / 255.25
Nov20 253.75 / 255.75
Dec20 255.00 / 257.00
Jan21 256.75 / 258.75
Feb21 258.50 / 260.50
Mar21 260.25 / 262.25
Q4-20 254.00 / 256.00
Q1-21 258.50 / 260.50
Q2-21 263.75 / 265.75
Q3-21 267.25 / 270.25
CAL21 263.00 / 266.00
Rott VLSFO 0.5% INDIC
Oct20 297.00 / 302.00
Nov20 298.75 / 303.75
Dec20 300.50 / 305.50
Jan21 303.50 / 308.50
Feb21 306.50 / 311.50
Mar21 309.50 / 314.50
Q4-20 298.75 / 303.75
Q1-21 306.50 / 311.50
Q2-21 314.00 / 320.00
Q3-21 319.75 / 325.75
CAL21 315.75 / 321.75
Singapore VLSFO 0.5% INDIC
Oct20 320.25 / 325.25
Nov20 320.50 / 325.50
Dec20 321.50 / 326.50
Jan21 322.75 / 327.75
Feb21 324.25 / 329.25
Mar21 325.75 / 330.75
Q4-20 320.75 / 325.75
Q1-21 324.25 / 329.25
Q2-21 328.25 / 334.25
Q3-21 332.75 / 338.75
CAL21 330.25 / 336.25
Sing 10ppm GO INDIC
Oct20 46.37 / 46.51
Nov20 46.82 / 47.02
Dec20 47.33 / 47.53
Jan21 47.84 / 48.04
Feb21 48.37 / 48.57
Mar21 48.93 / 49.13
Q4-20 46.85 / 47.05
Q1-21 48.38 / 48.58
Q2-21 49.88 / 50.08
Q3-21 51.16 / 51.36
CAL21 50.25 / 50.65
ICE Gasoil 10ppm INDIC
Oct20 346.60 / 348.60
Nov20 352.20 / 354.20
Dec20 356.97 / 358.97
Jan21 362.05 / 364.05
Feb21 366.90 / 368.90
Mar21 370.35 / 372.35
Q4-20 351.95 / 353.95
Q1-21 366.43 / 368.43
Q2-21 376.35 / 378.35
Q3-21 388.06 / 390.06
CAL21 381.32 / 383.32
Rott Hi5 Sing Hi5
Oct20 59 69
Nov20 61 69
Dec20 63 68
Jan21 64 68
Feb21 65 68
Mar21 66 67
Q4-20 61 69
Q1-21 65 68
Q2-21 68 67
Q3-21 71 67
CAL21 71 69
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