Good morning. Brent was down 25 cents or 0.6%, at $39.53 at 0455GMT after a drop of over 5% through Tuesday, with WTI down 0.8%, or 28 cents to $36.48 per barrel after a fall of 8% through Tuesday. We are seeing a good correction on crude at the minute, long overdue many might add as Oil extends losses after its first Sub-$40 Close since Mid-June. Abu Dhabi is cutting official crude pricing for October, following a similar Saudi move over the weekend and sending a further bearish signal for oil.
The UK have introduced new measures in a bid to stifle any second waves of the pandemic, by limiting groups of up to 6 people indoors and out, as the Coronavirus infection have seen unabated growth in areas such as India, parts of the US and Spain.
The market sentiment seems stuck on the point of demand, with concerns rising as Chinese demand cools off after a buying spree during the COVID-19 pandemic, and demand for fuels is lacklustre as international travel is still on hold across the globe. The Asian gasoline refining margin rose to a 2-week high against gasoline production units in South Korea and Thailand, Argus 92R Singapore gasoline price against Ice Brent, rose to $2.98/bl on 7 September, with it last higher 25 august.
In the run up to the presidential election in the US on November 3, Trump has signed an order to ban offshore oil drilling in the eastern Gulf of Mexico as he seeks to win support of the voters, although met with scepticism from environmentalists, and disappointment from the drilling industry. The order acts as an important step in Trump’s campaign, although it can be reversed by a future president. In other US news, The Iranian fuel bound for Venezuela that was seized by the US is due to arrive in Texas in the next few days, as Washington continue to disrupt trade flows between Caracas and Tehran. Trump has increased pressure on both countries, by placing sanctions of exports that have spooked oil customers and shipping firms.
Hurricane Laura is still causing problems for the citizens of Louisiana, with 8.5% of the state still without power. Some of the hardest hit areas, including the power grid that has a 1 million bpd refining capacity, are still yet to recover.
MARKETS NEWS:
* Asia Awash With Key Oil Product as Air Travel Slump Swells Glut
* Oil Glut Trade on the Brink of Making Comeback in Blow for OPEC+
* Oil Traders Seek U.S. On-Land Storage Amid WTI Weakness: Broker
* Mexico Is Cutting Pemex’s Oil Output Forecast in Latest Setback
* Nigerian Crude Cargoes Start to Pile Up Again Off Gibraltar
* Canadian Crude Strengthens After Suncor Cuts Outlook
* Lowest Azeri Oil Flows in Years Won’t Stop Atlantic Basin Boost
* Baker Hughes Sees International Oil-Services Work Down in 2021
* Pandemic Cut Brazil Aviation Fuel Consumption by 80%, Cosan Says
OTHER NEWS:
* Trump Extends Oil Drilling Ban to Woo Florida in Tight Race
* Elliott Discloses Stake in Takeover Target Noble Energy
* Iranian Fuel Seized by U.S. to Reach Texas Within Days: Reuters
* Russia Eyes Oil Industry Tax Breaks to Boost Service Firms
* Citgo Declares Force Majeure on Lake Charles Crude Purchases
* Norway Oil Wage Talks Move to Mediation to Avoid Strike
* Oil Industry Should Reveal Virus Infection Rates, Activists Say
* Exxon Mobil Yield Hits 9% After Falling to Lowest Since March
* Rig Owner Transocean Gets Pimco Default Notice on Its Bonds
PHYSICAL CRUDE NEWS:
* ASIA: Abu Dhabi Slashes Murban OSP; Qatar Offers Nov. LSC
* LATAM: Mexico Cuts Pemex’s Oil Output Forecast
* US/CANADA: U.S. On-Land Storage Sought Amid WTI Weakness
* NSEA: Exxon Offers Ekofisk Lower; GAEL Restriction Lifted
* MED: BTC Azeri Exports to Slump; Libya Cuts Es Sider OSP
* WAF: Maurel & Prom Sells to ChemChina; Sonangol Price Cut
OIL PRODUCT NEWS:
* U.S.: Citgo Cancels Lake Charles Crude Purchases
* EUROPE: Flow to WAF Jumps; Feyzin Restarts CDU
* ASIA: FGE Sees Bleak Outlook for Refining Margins
ECONOMIC EVENTS: (Times are London. )
* 5pm: EIA publishes its monthly Short-Term Energy Outlook
* 9.30pm: API issues weekly U.S. oil inventory report (a day
later than usual due to U.S. holiday)
* Genscape weekly ARA crude inventory report
* Spain’s CORES issues crude-import data for July
ANALYST COLUMNS:
* Morgan Stanley Raises 2H 2021 Brent Oil Est. by $5 to $50
* Oil Price Moves Weigh on Value of Producer Hedges, BNEF Says
* E&Ps May Revisit Drilling Plans, Cost Cuts With Oil Drop: Truist
OTHER FINANCIAL MARKETS:
* Stocks Drop Amid Vaccine Concern; Dollar Rises: Markets Wrap
(Bloomberg Data and News)
Singapore 380 INDIC
Oct20 226.75 / 228.75
Nov20 228.50 / 230.50
Dec20 230.25 / 232.25
Jan21 232.50 / 234.50
Feb21 234.75 / 236.75
Mar21 237.00 / 239.00
Q4-20 228.50 / 230.50
Q1-21 234.75 / 236.75
Q2-21 240.75 / 242.75
Q3-21 245.00 / 248.00
CAL21 243.50 / 246.50
Rotterdam 3.5% INDIC
Oct20 214.00 / 216.00
Nov20 213.50 / 215.50
Dec20 214.00 / 216.00
Jan21 216.00 / 218.00
Feb21 218.00 / 220.00
Mar21 220.00 / 222.00
Q4-20 214.00 / 216.00
Q1-21 218.00 / 220.00
Q2-21 223.75 / 225.75
Q3-21 227.75 / 230.75
CAL21 225.50 / 228.50
Singapore VLSFO 0.5% INDIC
Oct20 284.75 / 289.75
Nov20 287.50 / 292.50
Dec20 290.25 / 295.25
Jan21 293.25 / 298.25
Feb21 296.00 / 301.00
Mar21 298.75 / 303.75
Q4-20 287.50 / 292.50
Q1-21 296.00 / 301.00
Q2-21 303.00 / 309.00
Q3-21 309.75 / 315.75
CAL21 305.75 / 311.75
Rott VLSFO 0.5% INDIC
Oct20 261.75 / 266.75
Nov20 264.75 / 269.75
Dec20 268.25 / 273.25
Jan21 272.25 / 277.25
Feb21 275.75 / 280.75
Mar21 279.00 / 284.00
Q4-20 264.75 / 269.75
Q1-21 275.50 / 280.50
Q2-21 284.25 / 290.25
Q3-21 291.75 / 297.75
CAL21 287.00 / 293.00
Sing 10ppm GO INDIC
Oct20 42.91 / 43.05
Nov20 43.51 / 43.71
Dec20 44.08 / 44.28
Jan21 44.64 / 44.84
Feb21 45.20 / 45.40
Mar21 45.76 / 45.96
Q4-20 43.50 / 43.70
Q1-21 45.20 / 45.40
Q2-21 46.82 / 47.02
Q3-21 48.37 / 48.57
CAL21 47.34 / 47.74
ICE Gasoil 10ppm INDIC
Oct20 321.45 / 323.45
Nov20 326.86 / 328.86
Dec20 331.70 / 333.70
Jan21 337.09 / 339.09
Feb21 342.46 / 344.46
Mar21 346.55 / 348.55
Q4-20 326.65 / 328.65
Q1-21 342.03 / 344.03
Q2-21 354.02 / 356.02
Q3-21 370.18 / 372.18
CAL21 361.20 / 363.20
Rott Hi5 Sing Hi5
Oct20 49 60
Nov20 53 61
Dec20 56 62
Jan21 58 62
Feb21 59 63
Mar21 60 63
Q4-20 52 61
Q1-21 59 63
Q2-21 63 65
Q3-21 66 66
CAL21 63 64