Good morning all and a very Happy New Year to you!
Brent crude for March was at $52.42 a barrel, up 62 cents or 1.2%, by 0348 GMT before reaching highs of $53.17 but 0615GMT while U.S. West Texas Intermediate crude for February rose 55 cents, or 1.1%, to $49.07 a barrel.
Oil prices have surged this morning as the dollar weakens and investors are poising for a recovery, with OPEC+ producers stating that they may cap oil output at current levels as virus cases in the west have begun to get further out of control.
Iran’s parliament has lowered the expected export target of oil after it was deemed to be too optimistic given the current sanctions imposed by the US amongst other factors for why the proposed target of two million barrels a day was revised down to 1.5 million barrels per day. The past year has seen exports or Iranian oil at below one million barrels a day due to the Strict US sanctions and the hit in demand for oil as a result of the global pandemic. (S&P Global Platts)
A Chinese buyer has been awarded a 5-year contracts of the supply of Iranian oil with the terms outlining prepayments starting from the 1st July 2020, as SOMO looks to fill a deficit in state finances left by the crashing oil prices in 2020. The deal quantity looks to be in the region of 4 million barrels a month of Basrah crude oil. (S&P Global Platts)
Russian oil output fell to the lowest levels since 2011 and production fell for the first time since 2008 as a deal was struck to limit output following sluggish demand recovery since the pandemic. Russian oil and gas condensate output declined to 10.27 million barrels per day (bpd) last year, according to energy ministry data cited by the Interfax news agency. (Reuters)
INDEX: (MTD Estimates)
* Sing 380: 297.10
* Rott 3.5%: 277.61
* Sing 0.5%: 378.79
* Rott 0.5%: 361.77
MARKETS NEWS:
* China’s Wintry Cold Lifts Diesel Use as Factories Buy Generators
* OPEC’s Barkindo Sees Oil Demand Shifting to ‘Forward Gear’
* Adnoc May Boost Murban Crude Price by ~34C for Feb.: Survey
* Oman Crude Official Selling Price Set at $50/Bbl for Feb.: DME
* ASIA-AMERICAS FUEL: December Shipments Set for Five-Month Low
* Venezuelan Oil Exports Crater as OPEC+ Set to Unleash More Crude
* Petronas Sets MCO Crude Official Price at $50.66/Bbl for Dec.
* Russia 2020 Output at Lowest in Nearly a Decade Amid OPEC+ Deal
* Iraq Picks Chinese Firm for $2 Billion Oil Prepayment Deal
* PetroChina Says Gas Output Exceeded Oil in 2020 for First Time
* Iran to Boost Oil Output Via $1.2 Billion Deal With Local Firms
* Iraq Oil Exports Unaffected by Tanker With Mine, SOMO Says
OTHER NEWS:
* China Oil Majors May Face U.S. Delisting After Telcos Cut
* Asia Manufacturing Picks Up Pace as China Starts to Moderate
OIL PRODUCT NEWS:
* EUROPE: Primorsk Diesel Exports; Glencore Bids ULSD
* ASIA: U.S. Gasoline Imports; Diesel-Laden Tanker
ECONOMIC DATA:
* OPEC+ ministerial meeting by video conference, to discuss future monthly output increases
* Bloomberg to publish tanker tracking of December crude exports for key OPEC, non-OPEC nations this week
* CFTC and ICE commitments of traders reports, delayed from Jan. 1, with data for week ended Tuesday, Dec. 29
* Spain’s CORES releases November fuel sales data
* Revised CPC crude oil loading program for January
* HOLIDAY: Russia, New Zealand, Kazakhstan, Azerbaijan
OTHER FINANCIAL MARKETS:
* Dollar Dips, Gold Jumps; Stocks Head Toward Record: Markets Wrap
*Rotterdam 3.5% INDIC*
Feb21 293.00 / 295.00
Mar21 292.00 / 294.00
Apr21 289.75 / 291.75
May21 287.25 / 289.25
Jun21 284.75 / 286.75
Jul21 282.25 / 284.25
Q2-21 291.75 / 293.75
Q3-21 284.75 / 286.75
Q4-21 276.75 / 278.75
Q1-22 269.25 / 272.25
CAL22 262.75 / 268.75
*Singapore 380 INDIC*
Feb21 308.50 / 310.50
Mar21 307.75 / 309.75
Apr21 306.00 / 308.00
May21 304.00 / 306.00
Jun21 302.00 / 304.00
Jul21 299.25 / 301.25
Q2-21 307.50 / 309.50
Q3-21 301.75 / 303.75
Q4-21 295.25 / 297.25
Q1-22 290.25 / 293.25
CAL22 281.50 / 287.50
*Rott VLSFO 0.5% INDIC*
Feb21 384.50 / 389.50
Mar21 384.00 / 389.00
Apr21 383.50 / 388.50
May21 383.00 / 388.00
Jun21 382.50 / 387.50
Jul21 382.00 / 387.00
Q2-21 384.00 / 389.00
Q3-21 382.50 / 387.50
Q4-21 380.25 / 386.25
Q1-22 377.25 / 385.25
CAL22 358.75 / 366.75
*Singapore VLSFO 0.5% INDIC*
Feb21 400.00 / 405.00
Mar21 399.25 / 404.25
Apr21 399.25 / 404.25
May21 399.25 / 404.25
Jun21 399.25 / 404.25
Jul21 399.25 / 404.25
Q2-21 399.50 / 404.50
Q3-21 399.25 / 404.25
Q4-21 398.75 / 404.75
Q1-22 397.75 / 405.75
CAL22 378.50 / 386.50
*Sing 10ppm GO INDIC*
Feb21 58.46 / 58.60
Mar21 58.59 / 58.79
Apr21 58.79 / 58.99
May21 58.95 / 59.15
Jun21 59.04 / 59.24
Jul21 59.21 / 59.41
Q2-21 58.55 / 58.85
Q3-21 59.01 / 59.31
Q4-21 59.45 / 59.75
Q1-22 59.55 / 59.85
CAL22 59.09 / 59.49
*ICE Gasoil 10ppm INDIC*
Feb21 439.03 / 441.03
Mar21 439.03 / 441.03
Apr21 440.15 / 442.15
May21 441.15 / 443.15
Jun21 442.04 / 444.04
Jul21 443.08 / 445.08
Q2-21 439.40 / 441.40
Q3-21 442.09 / 444.09
Q4-21 445.15 / 447.15
Q1-22 444.29 / 446.29
CAL22 442.73 / 444.73
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