Crude Oil Prices as at
AM 10/ 08/2020
Oil prices fell nearly 2% on Friday, limiting their weekly gain due to concerns the global recovery could falter from a resurgence of coronavirus cases. The rise in infections remains the dominant issue for the fuel demand outlook. Cases in the United States are still rising in a number of states, while India recently reported a record daily jump in infections. More than 700,000 people have died in the worldwide pandemic.
Talks between U.S. lawmakers over another round of stimulus have stalled, meanwhile. U.S. President Donald Trump has threatened to pull White House representatives out of talks and instead issue executive orders to address economic needs.
“The U.S. Congress can’t seem to come up with a plan for the next round of stimulus and it’s creating doubt for U.S. economic recovery,” said Gary Cunningham, director of market research at Tradition Energy.
OPEC member Iraq pledged to cut output further in August, which helped support prices. The nation has been a laggard in fully meeting its pledge as part of an April deal to reduce supply. Crude has recovered from lows reached in April, when Brent slipped below $16, a 21-year low.
U.S. energy companies cut the number of oil and natural gas rigs this week to a record low for a 14th week. U.S. oil rigs fell by four to 176 this week, their lowest since July 2005, according to data from energy services firm Baker Hughes Co
The West African crude market ended the week slowly, with low Asian demand for Nigerian crude leaving refiners in Europe in no hurry to buy September-loading cargoes. The outcome of Thursday’s IOC tender became known, with several sources saying the Indian state oil company had taken 1 million barrels of Agbami, Nigeria’s lightest grade, another 1 million of the slightly heavier Brass River, and 2 million barrels of distillate-rich Bonny Light.
South Africa’s Sasol held a tender that closed on the morning of Aug. 7 for loading in mid-September and arrival at the start of October. One trader said they’d heard that Sasol had taken Qua Iboe had gone at Dated minus 50 cents,” they said, adding that Qua had suffered particularly among Nigerian grades for it slighter product yield. Indonesia’s Pertamina had also cut down on purchases.
With refining margins in Europe close to negative levels and an abundance of products, several traders have said they expect discounts to grow for Nigerian crude with just over a week to go until the October programs are expected. The week also saw offer comes down for US WTI, which is seen as an alternative to Nigerian light grades. US imports into Europe have been the major threat, with no arbitrage for Nigerian crude anywhere as the East is dull.
Prices are as follows:
(1)Dated Brent =$44.26 / bbl (-0.995)
(2)Bonny Light =$43.99/bbl (-0.695)
(3)QuaIboe =$43.79 /bbl (-0.695)
(4)Forcados =$44.14 /bbl (-0.695)
Premium unleaded pms= $387.75/mt (-4.75)
0.1% Gasoil= $366/mt (-6.5)
Clean Tanker freight UKC-WAF= $17.51/mt (0)
Stay Safe and have a wonderful week.