Keeping an eye on bunkers. Your weekly bunker update powered by InterContinental Bunkering.
Brent crude futures for December fell by 12 cents, or 0.3%, to $42.33 a barrel on Tuesday while U.S. WTI futures were down 11 cents, or 0.3%, to $40.09.
Early morning interest this morning sees selling on high sulfur and buying on low sulfur, with the European and Singapore FoGos strengthening yesterday but some cooling off on the fuels and gasoil early today.
The increases in coronavirus cases are looking bleak for total fuel demand and as such, oil dropped yesterday morning as it is thought that economic growth could be affected into the winter as cases are yet to be under control.
OPEC released its monthly oil outlook and the key points from this month’s edition was that the forecast for next year’s oil demand was revised down by 80,000 barrels per day as a result of the effect of COVID-19. (Reuters)
Crude oil production in the Gulf of Mexico was slowly increasing over the course of the week, with 69% shut on Monday, but this figure fell to only 44% on Tuesday as platforms begin to be restaffed as Hurricane Delta moved away from the region.(Reuters)
US shale production is expected to fall by 123,000 bpd in November in the biggest drop in production since May to roughly 7.69 million barley per day according to the EIA’s monthly forecast. Output is expected to drop for the third straight month. (Reuters)
The UAE energy minister quashed speculations over changes to the OPEC+ Cuts and reaffirmed that the agreement was signed to stick to production cuts, as rumours were circulation about the potential push back of output cuts.
OPEC stated that China is the only country on course to a stable recovery from the virus, with oil demand slowly rising, but oil demand elsewhere remains bleak as lockdowns are still in force. (S&P Global Platts)
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