The fast-spreading new coronavirus strain has shut down much of Britain and has prompted several countries to close their borders to British travellers and freight.
Brent crude futures were down 54 cents, or 1.1% to $50.37 a barrel at 0531 GMT before falling to $49.60 at 0700GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 59 cents, or 1.2%, to $47.38 a barrel.
Both benchmark contracts slid nearly 3% on Monday, partly erasing recent strong gains on the back of the rollout of COVID-19 vaccines, seen as key to easing mobility restrictions.
The new strain of the coronavirus causes many stocks to fall yesterday as the uncertainty surrounding the recovery from the virus fallout continues. Over 40 countries have now shut their borders to the UK, and many may follow suit in order to stop the spread of this new strain. As a result, brent crude seems to have lost momentum off the back of 7 consecutive weekly gains on the benchmark.
The fundamentals that have propped up oil for the last seven weeks seem to be dwindling, with the OPEC output increases coming at a critical time, as oil demand may be tapering off.
Physical oil grades globally have been holding up as China continues purchases. China’s crude throughput in November rose 3.2% on year to a record on a daily basis. (Reuters)
However, for late 2021, June barrels are trading nearly 80 cents a barrel higher than December barrels. That suggests oversupply could return by the end of next year, particularly as OPEC boosts production.
INDEX: (MTD Estimates)
* Sing 380: 295.60
* Rott 3.5%: 274.95
* Sing 0.5%: 374.47
* Rott 0.5%: 358.98
MARKETS NEWS:
* Russia Said to Favor Further OPEC+ Output Hike in February
* Diamondback Boosts Permian Basin Presence With 2 Shale Deals
* Oil Sands Covid-19 Outbreak Spreads to Cenovus Foster Creek
* Venezuela ProducesUp to 80K Fuel Barrels Per Day: Oil Chamber
* U.S. Imports of European Diesel Climb to New High Amid Storms
* Real Oil Price Rally Fades as Asia’s Buying Spree Winds Down
OTHER NEWS:
* Google’s Aramco Deal Risks Irking Staff Over Oil, Politics
* Texas Virus Hospitalizations Surge Above 10,000 to 5-Month High
* BP Joins Gas-From-Cow-Manure Push with U.S. Joint Venture
* Conoco Alaska Drilling With ‘Chillers’ Provokes Groups’ Suit
* Enbridge to Buy Cushing Storage Terminal From Blueknight Energy
OIL PRODUCT NEWS:
* U.S.: FCC Work Moved By Marathon, Set by Citgo
* EUROPE: U.S. Pulls More; Jet Fuel Strengthens
* ASIA: Floating Storage Shrinks; Flows to Americas
ECONOMIC DATA: (Times are London.)
* 9:30pm: API weekly U.S. oil inventory report
ANALYST VIEWS/COLUMNS:
* U.S. Gasoline Demand Rises Third Straight Week: Descartes
* Oil’s Huge Other Reportables Short Remains a Mystery: Citi
* Supertankers in Floating Storage at NewMulti-Month Low:Braemar
OTHER FINANCIAL MARKETS:
* Asian Stocks Slip on Virus Concerns; Dollar Steady: Markets Wrap
*Rotterdam 3.5% INDIC*
Jan21 279.75 / 281.75
Feb21 278.75 / 280.75
Mar21 277.50 / 279.50
Apr21 274.75 / 276.75
May21 271.75 / 273.75
Jun21 268.50 / 270.50
Q1-21 278.50 / 280.50
Q2-21 271.50 / 273.50
Q3-21 262.00 / 264.00
Q4-21 253.25 / 256.25
CAL21 265.25 / 271.25
*Singapore 380 INDIC*
Jan21 296.25 / 298.25
Feb21 294.75 / 296.75
Mar21 293.25 / 295.25
Apr21 290.50 / 292.50
May21 287.75 / 289.75
Jun21 284.75 / 286.75
Q1-21 294.75 / 296.75
Q2-21 287.75 / 289.75
Q3-21 279.50 / 281.50
Q4-21 272.25 / 275.25
CAL21 283.50 / 289.50
*Rott VLSFO 0.5% INDIC*
Jan21 354.25 / 359.25
Feb21 354.75 / 359.75
Mar21 355.00 / 360.00
Apr21 355.25 / 360.25
May21 355.50 / 360.50
Jun21 355.75 / 360.75
Q1-21 354.75 / 359.75
Q2-21 355.50 / 360.50
Q3-21 355.50 / 361.50
Q4-21 354.25 / 362.25
CAL21 352.75 / 360.75
*Singapore VLSFO 0.5% INDIC*
Jan21 373.25 / 378.25
Feb21 374.00 / 379.00
Mar21 374.50 / 379.50
Apr21 375.00 / 380.00
May21 375.25 / 380.25
Jun21 375.50 / 380.50
Q1-21 374.00 / 379.00
Q2-21 375.25 / 380.25
Q3-21 375.50 / 381.50
Q4-21 375.25 / 383.25
CAL21 373.50 / 381.50
*Sing 10ppm GO INDIC*
Jan21 55.15 / 55.29
Feb21 55.18 / 55.38
Mar21 55.33 / 55.53
Apr21 55.48 / 55.68
May21 55.62 / 55.82
Jun21 55.72 / 55.92
Q1-21 55.16 / 55.46
Q2-21 55.55 / 55.85
Q3-21 55.97 / 56.27
Q4-21 56.14 / 56.44
CAL21 55.66 / 56.06
*ICE Gasoil 10ppm INDIC*
Jan21 411.75 / 413.75
Feb21 414.41 / 416.41
Mar21 416.03 / 418.03
Apr21 417.44 / 419.44
May21 418.77 / 420.77
Jun21 420.21 / 422.21
Q1-21 414.05 / 416.05
Q2-21 418.81 / 420.81
Q3-21 422.86 / 424.86
Q4-21 426.32 / 428.32
CAL21 420.51 / 422.51
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