FIS Fuel Oil Morning Report 29/06/2020

Good morning. Oil is lower today with the virus weighing on demand again. Cases rose in the United States and other places, leading some countries to resume partial lockdowns that could hurt fuel demand. Brent dropped 81 cents, or 2%, to $40.21 a barrel by 0653 GMT, while U.S. was at $37.74, down 75 cents, or 2%.

Brent is set to end June with a third consecutive monthly gain after major global producers extended an unprecedented 9.7 million barrels per day supply cut agreement into July, while oil demand improved after countries across the globe eased lockdown measures. However, global coronavirus cases exceeded 10 million on Sunday as India and Brazil battled outbreaks of over 10,000 cases daily. New outbreaks are reported in countries including China, New Zealand and Australia, prompting governments to impose restrictions again.

“The second wave contagion is alive and well,” Howie Lee, an economist at Singapore’s OCBC bank, said. “That is capping the bullish sentiment that we’ve seen in the last six to eight weeks.” Other factors restricting oil prices’ advance at this stage include poor refining margins, high oil inventories and the resumption of U.S. production, Lee said.


Points from Bloomberg

MARKETS NEWS:

* Chesapeake’s Collapse Is Latest in Long Line of Shale Disasters
* Iraq May Amend High-Cost Oil Output Deals, Jabbar Tells Al-Sabah
* As OPEC+ Cuts Deeper, Norway’s Giant New Field Pumps Flat Out
* Oil Merchants And Tanker Titans Kiss Goodbye to Bonanza Trade
* China’s U.S. Oil Binge Seen Slowing With Virus Revival
* Libya’s Agoco to Resume Oil Output From Eastern Messla Field
* Traders Who Booked Tankers to Store Oil Glut See Demand Plunge
* Shale Fracking Returns, Tapping Huge Glut of Idled Equipment
* OIL ALLOCATIONS: Abu Dhabi Will Cut August Crude Supply by 5%
* ASIA-AMERICAS FUEL: June Flows Set to Be Lowest Since Sept. 2017

PIPELINE/REFINERIES NEWS:
* GENSCAPE REFOUT RECAP: Schwedt, Antwerp, Martinez, Paulsboro
* ENEOS Delays Restart of Kawasaki Refinery CDU to Late July

OTHER NEWS:
* Exxon Prepares to Make Job Cuts Across Oil Giant’s U.S. Offices
* Unlike Last Time, Tanker Market May Take Sanctions In Its Stride
* China’s Buying of U.S. Goods Reaches 19% of 2020 Trade Target

PHYSICAL CRUDE WRAPS:
* ASIA: Hoard Off Singapore Sheds Light on Region’s Recovery
* LATAM: Latam Physical Barrels; Venezuela, India; Guyana
* US/CANADA: Shale Fracking Returns, Taps Equipment Glut
* NSEA: Oseberg Loadings to Rise, Troll Stable; Litasco Bids
* MED: Urals Loadings to Plunge; Surgut, Hellenic Tenders
* WAF: Nigeria’s Exports of 18 Key Grades Gain to 1.72M B/D

OIL PRODUCT WRAPS:

* U.S.: Virus’ 2nd Wave Is Threatening Oil Demand
* Europe: Africa Pulling on Diesel; Pernis VDU
* Asia: Hoard at Sea Sheds Light on Region’s Recovery

ECONOMIC DATA/EVENTS: (Times are London)
* No major events planned

ANALYST VIEWS/COLUMNS:
* Trump’s Inaction Makes Oil Market Management Harder: Julian Lee

OTHER FINANCIAL MARKETS:
* Stocks Mixed as Virus Weighed Against Better Data: Markets Wrap

 

Rotterdam 3.5% INDIC                                  

Jul20      215.25   /             217.25

Aug20   214.50   /             216.50

Sep20    212.00   /             214.00

Oct20    210.00   /             212.00

Nov20   209.75   /             211.75

Dec20    211.00   /             213.00

Q3-20    214.00   /             216.00

Q4-20    210.25   /             212.25

Q1-21    213.75   /             215.75

Q2-21    216.50   /             219.50

CAL21    218.25   /             224.25

Singapore 380 INDIC                                      

Jul20      225.00   /             227.00

Aug20   227.50   /              229.50

Sep20    228.25   /             230.25

Oct20    229.00   /             231.00

Nov20   229.75   /             231.75

Dec20    231.25   /             233.25

Q3-20    227.00   /             229.00

Q4-20    230.00   /             232.00

Q1-21    233.25   /             235.25

Q2-21    235.00   /             238.00

CAL21    238.25   /             244.25


Singapore VLSFO 0.5% INDIC                                      

Jul20      281.25   /              287.25

Aug20   289.00   /              295.00

Sep20    294.75   /              300.75

Oct20    299.75   /              305.75

Nov20   304.25   /              310.25

Dec20    308.00   /              314.00

Q3-20    288.25   /              294.25

Q4-20    304.00   /              310.00

Q1-21    314.25   /              320.25

Q2-21    321.00   /              329.00

CAL21    334.25   /              342.25

 

Rott VLSFO 0.5% INDIC                                 

Jul20      269.25   /              275.25

Aug20   274.25   /              280.25

Sep20    278.25   /              284.25

Oct20    282.00   /              288.00

Nov20   285.25   /              291.25

Dec20    288.25   /              294.25

Q3-20    273.75   /              279.75

Q4-20    285.00   /              291.00

Q1-21    294.50   /              300.50

Q2-21    301.00   /              309.00

CAL21    309.25   /              317.25

 

Sing 10ppm GO INDIC                                   

Jul20      45.96     /              46.10

Aug20   45.47     /              45.67

Sep20    45.69     /              45.89

Oct20    46.07     /              46.27

Nov20   46.45     /              46.65

Dec20    46.83     /              47.03

Q3-20    45.65     /              45.95

Q4-20    46.40     /              46.70

Q1-21    47.64     /              47.94

Q2-21    48.88     /              49.18

CAL21    49.48     /              49.88

 

ICE Gasoil 10ppm INDIC                                

Jul20      340.63   /              342.63

Aug20   345.34   /              347.34

Sep20    350.17   /              352.17

Oct20    353.99   /              355.99

Nov20   356.66   /              358.66

Dec20    359.62   /              361.62

Q3-20    345.40   /              347.40

Q4-20    356.76   /              358.76

Q1-21    369.07   /              371.07

Q2-21    378.84   /              380.84

CAL21    384.13   /              386.13

 

          Rott Hi5   Sing Hi5

Jul20      56           58

Aug20   62           64

Sep20    68           69

Oct20    74           73

Nov20   78           77

Dec20    79           79

Q3-20    62           63

Q4-20    77           76

Q1-21    83           83

Q2-21    87           89

CAL21    92           97

 

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