Brent crude was down 30 cents, or 0.7%, at $41.42 per barrel. U.S. West Texas Intermediate (WTI) crude for October, dropped 34 cents, or 0.9%, to $39.46.
As the UK Lockdown measures become stricter for the foreseeable future, America are relieved at the fact that Storm Beta has weakened along the Gulf Coast. On the other hand, this could trigger another increase in supply from the previous draw reported by the EIA. Motiva Enterprises’ 607,000 bpd facility is now up and running, planning to operate throughout the storm after just one week since restarting since Hurricane Laura. Total have advised night-shift workers to pack overnight bags in case flooding causes them to become trapped in their 225,000 bpd facility. (Reuters)
Libya’s oil production is expected to reach over 260,000 bpd by the start of next week as it begins to ramp up production following the lifting of the production blockade, the exports will resume from ‘secure ports’ with tankers arriving on Wednesday. Oil prices fell 5% on Monday following the news out of Libya, combined with the imploding demand caused by the resurgence of coronavirus cases. Libya’s maximum output accounts for over 1% of total world supply before the blockade, which was slashed to just 100,000 bpd for the last 8 months. Libya remains in chaos a decade on from the overthrow of Gaddafi, still with no central government. However, oil prices on Tuesday rose on the news that enhanced lockdowns will only have a limited impact on oil demand, partly reversing Monday losses. (Reuters)
More on OPEC, Iran’s semi-autonomous Kurdish region is a source of possible oil smuggling and overproduction which has meant that it is not complying with OPEC cuts. Ali Allawi told the Powering Iraq virtual conference that there were reasons to believe that KRG is not cutting back to limits required by OPEC and there may be smuggling within the region that produces up to 470,000 bpd. (S&P Global Platts)
MARKETS NEWS:
* API Reports U.S. Crude Stockpiles Rose 691K Bbl Last Week
* Beta Floods Houston, Dumps Rain on Gulf Coast as It Weakens
* U.S. Flag Tanker Alaskan Navigator Sails From Alaska for China
* Strong California Fuel Rack Prices Lure Canada-Supplied
Gasoline
* AMERICAS-EUROPE FUEL: Flows to Reach 13-Month High on U.S.
Surge
* Libya Lifts Force Majeure on Oil Exports From Zueitina Port
* USCG Partially Reopens Sector Houston-Galveston Ports
* Petronas Sets MCO Oil Price Adjustment Factor at 30c/B for
Oct.
OTHER NEWS:
* Ex-Vitol Oil Trader Indicted in U.S. Probe of Bribes in
Ecuador
* Sinopec, EnQuest Said to Join Bidding for Exxon U.K. Assets
* Wall Street Commodity Traders Head for Best Year in a Decade
* Russia Turns to Oil Producers to Fill Budget Gap During
Pandemic
* Nigeria’s Uncertain Oil Tax Structure Is Hurting Industry
Growth
* Goldman Halts London Office Return Plan After Johnson Plea
PHYSICAL CRUDE NEWS:
* ASIA: China’s Private Refiners Seek More Oil-Import Quota
* LATAM: Merey 16 on Iran-Flagged Ship; Chile Takes Djeno
* US/CANADA: Two Oil Vessels Sailing for Asia With ANS Crude
* NSEA: Litasco Offering Again; Grandpuits Refinery
* MED: Libya Lifts Zueitina Force Majeure; Total Grandpuits
* WAF: Nigeria’s November Exports of Ten Grades to Gain 11%
OIL PRODUCT NEWS:
* U.S.: Beta Fills Bayous; Canada Fuel to Los Angeles
* EUROPE: Flow From U.S. Jumps; Total Grandpuits Plan
* ASIA: China’s Refiners Want More Quota; Diesel Rut
ECONOMIC DATA/EVENTS: (Times are London.)
* 3:30pm: EIA weekly oil inventory report
* Genscape weekly ARA crude inventory report
** See OIL WEEKLY AGENDA for this week’s events
ANALYST VIEWS/COLUMNS:
* Middle Distillate Demand May See Surprise Gain in 4Q:
Citigroup
* Oil May Be Range-Bound Until Fuel Demand Recovers: BofA
* Shale Explorer Bankruptcies Will Grow to 68 in 2021, Rystad
Says
* WTI Must Recover to $60/Bbl to Jumpstart Shale Revival: Rystad
OTHER FINANCIAL MARKETS:
* Dollar Extends Gains; Stocks, Futures Fluctuate: Markets Wrap
Singapore 380 INDIC
Oct20 236.75 / 238.75
Nov20 237.50 / 239.50
Dec20 239.00 / 241.00
Jan21 241.00 / 243.00
Feb21 243.00 / 245.00
Mar21 244.75 / 246.75
Q4-20 237.75 / 239.75
Q1-21 243.00 / 245.00
Q2-21 248.25 / 250.25
Q3-21 252.50 / 255.50
CAL21 250.25 / 253.25
Rotterdam 3.5% INDIC
Oct20 224.00 / 226.00
Nov20 224.25 / 226.25
Dec20 224.50 / 226.50
Jan21 226.50 / 228.50
Feb21 228.25 / 230.25
Mar21 230.00 / 232.00
Q4-20 224.25 / 226.25
Q1-21 228.25 / 230.25
Q2-21 233.75 / 235.75
Q3-21 236.50 / 239.50
CAL21 234.50 / 237.50
Rott VLSFO 0.5% INDIC
Oct20 277.00 / 282.00
Nov20 277.75 / 282.75
Dec20 279.00 / 284.00
Jan21 281.50 / 286.50
Feb21 284.00 / 289.00
Mar21 286.50 / 291.50
Q4-20 278.00 / 283.00
Q1-21 284.00 / 289.00
Q2-21 291.00 / 297.00
Q3-21 297.00 / 303.00
CAL21 293.25 / 299.25
Singapore VLSFO 0.5% INDIC
Oct20 303.00 / 308.00
Nov20 303.25 / 308.25
Dec20 304.25 / 309.25
Jan21 305.50 / 310.50
Feb21 306.75 / 311.75
Mar21 308.25 / 313.25
Q4-20 303.50 / 308.50
Q1-21 306.75 / 311.75
Q2-21 310.75 / 316.75
Q3-21 315.75 / 321.75
CAL21 313.25 / 319.25
Sing 10ppm GO INDIC
Oct20 43.56 / 43.70
Nov20 44.00 / 44.20
Dec20 44.46 / 44.66
Jan21 44.99 / 45.19
Feb21 45.54 / 45.74
Mar21 46.10 / 46.30
Q4-20 44.00 / 44.20
Q1-21 45.54 / 45.74
Q2-21 47.05 / 47.25
Q3-21 48.37 / 48.57
CAL21 47.46 / 47.86
ICE Gasoil 10ppm INDIC
Oct20 322.01 / 324.01
Nov20 328.05 / 330.05
Dec20 333.43 / 335.43
Jan21 339.21 / 341.21
Feb21 344.54 / 346.54
Mar21 348.40 / 350.40
Q4-20 327.85 / 329.85
Q1-21 344.05 / 346.05
Q2-21 355.10 / 357.10
Q3-21 368.32 / 370.32
CAL21 361.02 / 363.02
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