Brent continues on its 8% gains from yesterday as we start the morning session up 0.45% at 0727GMT at $42.60 dollar per barrel. WTI futures opened up at the same level as the close, to print $40.42 this morning. The market quietened down overnight after extraordinary upward moves on crude up after the news of a vaccine trial noted a 90% effectiveness.
A Biden administration would be welcomed by the OPEC+ cartel and ties would remain strong, with Sino-American ties potentially benefiting by boosting total global oil demand as a result. The Saudi Energy minister alluded to the 80+ years of relationships between the two nations, citing that they both have the common goal of reducing global emissions. (S&P Global Platts)
Extra UAE cuts boost OPEC+ compliance to 100.2% in October, just as OPEC looks to make the cuts of 7.7 million barrels per day into 2021, as we may find ourselves in an oversupplied market, pressuring the price of oil even further, although gains have been made over the past 24 hours as a result of bullish news on a vaccine. Libya was partly responsible for the increased output, as it ramped up production after an 8-month blockade, however they are not held to current quotas as they look to rebuild following civil unrest and war in the country. (S&P Global Platts)
Alexander Novak will remain in position to represent Russia in OPEC and OPEC ties even though he has been promoted to Russian deputy prime minister, who has played an important role in the reduction in output in the country, when a deal was first signed in 2016. (Reuters)
The premium for VLSFO has fallen under 20% in major bunkering ports and in dollar terms, fallen $52/mt. This premium has fallen throughout the year, having started at over 80% premium or $300/mt. (Ship and Bunker)
INDEX: (MTD Estimates)
* Sing 380: 251.19
* Rott 3.5%: 239.50
* Sing 0.5%: 312.57
* Rott 0.5%: 296.67
MARKETS NEWS:
* Mercuria CEO Says Oil Rally Caught Market Short
* Oil Indicators Shrug Off Viral Gloom on Covid Vaccine Hopes
* OPEC+ Gives New Signal It May Tweak Plan to Boost Oil Supply
* Adnoc Sets Dec. Murban Crude Official Price at 25C/Bbl Discount
* U.S. Gasoline Demand Down 1.5% Last Week: GasBuddy
* Petrobras Gasoline, Diesel Yields Rise as Brazil Lockdown Eases
* Benchmark VLCC Rates Decline; Mideast-Japan Clean Tankers Jump
OTHER NEWS:
* Climate Boldness in Biden Plan Risks Fizzling in GOP-Led Senate
* Europe Leads Big Oil’s Transition to Cleaner Energy
* Oman Seeks to Raise Billions by Leveraging Biggest Oil Block
* U.S. Sanctions Syrian Refinery, Petroleum Entities
* Horizons to Reintroduce Leverage on Crude Oil ETFs
OIL PRODUCT WRAPS:
* U.S.: Convent Refinery Better Than Many: Stratas
* EUROPE: ICE Gasoil Net-Short; U.S. Gasoline Imports
* ASIA: China Imports Set to Surge; Clean Fuels Flow
ECONOMIC DATA: (Times are London. )
* 5pm: EIA releases Short-Term Energy Outlook
* 9:30pm: API weekly U.S. oil inventory report
* ADIPEC 2020 Virtual Strategic Conference, second day of four; speakers include Iraq Minister of Oil Ihsan Ismaael, IEA Executive Director Fatih Birol, Eni CEO Claudio Descalzi, Vitol CEO Russell Hardy, Occidental CEO Vicki Hollub
Singapore 380 INDIC
Dec20 261.25 / 263.25
Jan21 259.75 / 261.75
Feb21 259.50 / 261.50
Mar21 259.50 / 261.50
Apr21 259.50 / 261.50
May21 259.75 / 261.75
Q1-21 259.50 / 261.50
Q2-21 259.75 / 261.75
Q3-21 260.00 / 262.00
Q4-21 259.50 / 262.50
CAL21 259.00 / 262.00
Rotterdam 3.5% INDIC
Dec20 245.00 / 247.00
Jan21 244.50 / 246.50
Feb21 244.75 / 246.75
Mar21 245.00 / 247.00
Apr21 245.25 / 247.25
May21 245.25 / 247.25
Q1-21 244.75 / 246.75
Q2-21 245.25 / 247.25
Q3-21 244.25 / 246.25
Q4-21 241.75 / 244.75
CAL21 242.75 / 245.75
Rott VLSFO 0.5% INDIC
Dec20 312.00 / 317.00
Jan21 311.75 / 316.75
Feb21 312.25 / 317.25
Mar21 313.00 / 318.00
Apr21 314.00 / 319.00
May21 315.00 / 320.00
Q1-21 312.25 / 317.25
Q2-21 315.00 / 320.00
Q3-21 318.00 / 324.00
Q4-21 321.25 / 327.25
CAL21 316.50 / 322.50
Singapore VLSFO 0.5% INDIC
Dec20 332.00 / 337.00
Jan21 331.25 / 336.25
Feb21 331.50 / 336.50
Mar21 332.00 / 337.00
Apr21 333.25 / 338.25
May21 334.50 / 339.50
Q1-21 331.50 / 336.50
Q2-21 334.50 / 339.50
Q3-21 338.25 / 344.25
Q4-21 342.25 / 348.25
CAL21 336.25 / 342.25
Sing 10ppm GO INDIC
Dec20 46.83 / 46.97
Jan21 47.02 / 47.22
Feb21 47.36 / 47.56
Mar21 47.72 / 47.92
Apr21 48.11 / 48.31
May21 48.46 / 48.66
Q1-21 47.35 / 47.55
Q2-21 48.45 / 48.65
Q3-21 49.63 / 49.83
Q4-21 50.44 / 50.64
CAL21 48.88 / 49.28
ICE Gasoil 10ppm INDIC
Dec20 347.60 / 349.60
Jan21 351.15 / 353.15
Feb21 354.66 / 356.66
Mar21 357.85 / 359.85
Apr21 360.55 / 362.55
May21 363.63 / 365.63
Q1-21 354.55 / 356.55
Q2-21 362.99 / 364.99
Q3-21 373.24 / 375.24
Q4-21 380.04 / 382.04
CAL21 367.71 / 369.71