Oil prices edged lower on Friday, pressured by rising coronavirus cases and uncertainty surrounding the result of a drawn-out US election.
Cases for coronavirus are surging in Europe and the US, leading to several renewed lockdowns in Europe, thus threatening the oil demand outlook. Italy recorded its highest daily number of infections on Thursday, while in the US cases continue to surge. Investors continue to monitor the US elections closely, as Democratic candidate Joe Biden gained more ground on President Donald Trump, while the latter has raised a yet unsubstantiated legal claim on voter fraud. However, the Senate is set to produce a Republican majority which would lead to a split Congress. This in turn would result in lower chances of a large US stimulus package which is also weighing on the market.
Insights Global’s ARA inventory data for the week ending the 4th of November showed draws for fuel oil and gasoline and builds for gasoil, jet fuel and naphtha. Total inventories rose by 57,000 mt to 6.70 million mt. Gasoline stocks dipped last week by 89,000 mt to 1.08 million mt, while fuel oil inventories were off by 21,000 mt to 1.35 million mt. Gasoil inventories increased the most, rising by 112,000 mt to 2.67 million mt. Jet fuel showed a rise of 43,000 mt to 1.21 million mt and naphtha inventories increased by 12,000 mt to 388,000 mt.
Refinitiv Oil Research believe jet arrivals from the East of Suez are expected to dry up next week as poor arbitrage economics and tepid demand growth in Europe due to fresh travel restrictions dissuades chartering activity. Asian demand appears to be more robust in comparison, helped by winter kerosene demand and some reduced regional output which is lifting spot prices and keeping swing barrels in the East.
Offers for medium to heavier grades of West African oil eased after faster sales late last month.
* Fewer than 10 cargoes of December-loading Angolan crude were still available, traders said, with several likely to be absorbed into equity holders’ own refining systems.
* Chevron recently sold a cargo of Angolan Nemba to Repsol at a discount to dated Brent.
* Spot cargoes of Angolan Dalia crude were sold out, with sale prices easing to about 65-70 cents above dated Brent, compared with offers closer to a dollar last month.
* Offers for lighter Angolan crude remained steady, with Cabinda offered at a little more than dated Brent plus $1 and Girassol at a little above $1.50 over dated Brent – little changed from earlier in the week.
* Indonesia’s Pertamina is running a rare tender to swap crude, for which Nigerian grades are eligible, for Jan. 14-24 delivery in exchange for its own Banyu Urip crude. The tender closes Nov. 9 and remains valid until Nov. 11.
The Prices are as follows:
(1)Dated Brent =$38.300/bbl (-1.195)
(2)Bonny Light =$39.085/bbl (-1.070)
(3)QuaIboe =$39.035/bbl (-1.07)
(4)Forcados =$39.185 /bbl (-1.07)
Premium unleaded pms= $349.50/MT (-6.25)
0.1% Gasoil=$314.50/MT (-4.50)
Clean Tanker freight UKC-WAF= $12.09/mt (0)
Stay Safe and have a wonderful week.