Brent futures were up 9 cents or 0.2%, at $43.24 per barrel whereas WTI futures were up 10 cents, or 0.2% at $42.21 a barrel.
The UK begins the week with the news that the second wave of coronavirus is upon us, which brings with it concerns on how this will affect lockdowns across the country, and the subsequent effect this will have across global markets and the recovery of oil prices as prices gained somewhat after EIA news of crude and gasoline draws as a result of US production halts from Hurricane Sally and OPEC announcements of clampdowns on non-compliance of production quotas.
News that came from Libya that the commander would be lifting oil blockages for one month, which has seen the nation producing 100,000 bpd, down from maximum capacity of 1.2 million bpd. The crux of the problem for why the blockage occurred relates to the internal disputes surrounding the way in which oil finances are used. This countered the news that of the OPEC announcement that issued warning to laggards of the quotas, keeping oil flat at the end of Friday. (Reuters)
US weather reports are predicting that there is another tropical storm on the way to the region with representatives from Shell reporting that the evacuation of their platforms in the Gulf are being prepared for the worst. The 23rd named storm of the season called Beta comes as many refiners began production after Hurricane Sally caused firms to take preventative measures in the form of evacuations just weeks ago. It is thought that although windspeeds will be like that of hurricane Sally, it is not thought to become a full hurricane. The area of offshore oil platform accounts for 17% of all US crude production, which will undoubtedly have an effect on production and could help sustain the oil price above the $40-$43 per barrel range (Reuters)
Elsewhere, Shell have announced plans to slash production costs of oil and gas by up to 40% in a bid to overhaul its business in preparation for the transition to renewable and green forms of energy. Project reshape is expected to be completed by the end of the year as margins in the power and renewable markets are slim and competition is intensifying. (Reuters)
MARKETS NEWS:
* Jet Fuel Is Now So Cheap It’s Being Blended for Use by Ships
* U.S. Gulf Shuts in 179,237 B/D or 9.69% Oil Production: BSEE
* Houston Ship Channel Closed, Pilots Halt Boardings for Storm
* Shell Evacuates All Staff from Perdido in Gulf of Mexico
* Exxon Evacuates Workers From Hoover Oil Platform Ahead of
Storm
* BHP Says Non-Essential Workers Removed From Gulf Ahead of
Storm
* Hedge Funds Cut Net Bullish Brent, WTI Oil Bets to 5-Month Low
* MIDEAST-EUROPE FUEL: Sept. Arrivals Gain With Saudi Flow
Revival
* Mideast Oil Tanker Surplus Set to Jump to Highest Since
February
* Nigeria to Boost Exports of Forcados Oil to 307k B/D in
November
OTHER NEWS:
* France, U.K., Germany Reject U.S. Call to Return Iran
Sanctions
* Chad Asks to Suspend Payments on Glencore Oil-Backed Loan
* Slow-Moving Storm Beta Set to Drench Texas, Louisiana Coasts
* Oil Patch Short-Seller Profits From Crash, Now Eyes Biden Win
* Saudi Firms Start Talks to Form $11 Billion Chemicals Maker
PHYSICAL CRUDE NEWS:
* ASIA: Saudis Defend Oil Recovery; Upper Zakum in Premium
* LATAM: Esmeraldas Seeks Bids; Mexico Refineries at 33%
* US/CANADA: Shell Shuts Gulf Perdido Oil Production Hub
* NSEA: Equinor Withdraws Troll Offer; Goldman Sees Deficit
* MED: Socar Offers Azeri; Deal to End Libya Export Blockade
* WAF: Nigeria’s November Flows Make Strong Start; Vitol-IOC
OIL PRODUCT NEWS:
* EUROPE: Flow From Mideast Rises; Hellenic Tender
* ASIA: S. Korea’s SK to Cut Runs in Oct.; Ampol Buys
* U.S.: Texas Facing Another Storm Threat From Gulf
ECONOMIC DATA/EVENTS:
* International Atomic Energy Agency holds its annual general
conference in Vienna, with topics ranging from safeguards in
Iran and Saudi Arabia to climate change and nuclear’s role in
the energy balance, through Sept. 25
** See OIL WEEKLY AGENDA for this week’s events
ANALYST VIEWS/COLUMNS:
* OPEC Reaffirms Supply Management, But Demand Still a Problem
* OIL MKT RESEARCH: Goldman on Stockpile Draws; Tanker Rates
OTHER FINANCIAL MARKETS:
* Dollar Retreats; Asian Stocks Slip on Low Volume: Markets Wrap
Singapore 380 INDIC
Oct20 248.00 / 250.00
Nov20 248.50 / 250.50
Dec20 249.50 / 251.50
Jan21 251.25 / 253.25
Feb21 253.00 / 255.00
Mar21 254.75 / 256.75
Q4-20 248.50 / 250.50
Q1-21 253.00 / 255.00
Q2-21 258.25 / 260.25
Q3-21 261.75 / 264.75
CAL21 259.50 / 262.50
Rotterdam 3.5% INDIC
Oct20 235.00 / 237.00
Nov20 234.75 / 236.75
Dec20 235.00 / 237.00
Jan21 236.75 / 238.75
Feb21 238.50 / 240.50
Mar21 240.25 / 242.25
Q4-20 234.75 / 236.75
Q1-21 238.50 / 240.50
Q2-21 243.50 / 245.50
Q3-21 246.25 / 249.25
CAL21 243.25 / 246.25
Rott VLSFO 0.5% INDIC
Oct20 289.25 / 294.25
Nov20 290.75 / 295.75
Dec20 292.50 / 297.50
Jan21 295.50 / 300.50
Feb21 298.50 / 303.50
Mar21 301.50 / 306.50
Q4-20 290.75 / 295.75
Q1-21 298.50 / 303.50
Q2-21 306.00 / 312.00
Q3-21 312.00 / 318.00
CAL21 308.00 / 314.00
Singapore VLSFO 0.5% INDIC
Oct20 313.25 / 318.25
Nov20 313.50 / 318.50
Dec20 314.25 / 319.25
Jan21 315.50 / 320.50
Feb21 317.00 / 322.00
Mar21 318.50 / 323.50
Q4-20 313.75 / 318.75
Q1-21 317.00 / 322.00
Q2-21 321.00 / 327.00
Q3-21 325.50 / 331.50
CAL21 323.00 / 329.00
Sing 10ppm GO INDIC
Oct20 45.57 / 45.71
Nov20 46.00 / 46.20
Dec20 46.47 / 46.67
Jan21 47.01 / 47.21
Feb21 47.57 / 47.77
Mar21 48.10 / 48.30
Q4-20 46.00 / 46.20
Q1-21 47.56 / 47.76
Q2-21 49.03 / 49.23
Q3-21 50.37 / 50.57
CAL21 49.44 / 49.84
ICE Gasoil 10ppm INDIC
Oct20 339.27 / 341.27
Nov20 345.30 / 347.30
Dec20 350.53 / 352.53
Jan21 355.97 / 357.97
Feb21 360.99 / 362.99
Mar21 364.70 / 366.70
Q4-20 345.05 / 347.05
Q1-21 360.55 / 362.55
Q2-21 371.05 / 373.05
Q3-21 384.01 / 386.01
CAL21 376.92 / 378.92
Rott Hi5 Sing Hi5
Oct20 56 67
Nov20 58 67
Dec20 59 66
Jan21 60 66
Feb21 62 66
Mar21 63 65
Q4-20 58 67
Q1-21 62 66
Q2-21 64 65
Q3-21 67 65
CAL21 66 65
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