Oil Market

Oil Market Review, 26th October 2020

  • Oil fell about 2% on Libyan output, COVID-19 demand concerns.
  • Oil fell nearly 2% on Friday, finishing lower for the week, in anticipation of a surge in Libyan crude supply and demand concerns caused by surging coronavirus cases in the United States and Europe. 
  • A surge in new COVD-19 cases in the US and Europe leads to a fall in oil prices.

Crude prices sank after Libya’s National Oil Corp (NOC) said it lifted force majeure on exports from key ports and output would reach 1 million barrels per...

https://mfame.guru/oil-market-review-26th-october-2020/

MABUX expects no oil market balance in 2020

High uncertainties about Covid-19 and the economic recovery continue to weigh on the fuel market and bunker prices, according to the courtesy of MABUX, which said, “It is clear now that 2020 would not be the year of oil market balance as the world still has a lot of excess crude and oil product stocks to process.”

The World Bunker Index MABUX turned into a slight downward trend for a week with the 380 HSFO index fell to US$296.38 / mt, VLSFO decreased to US$347 /mt while MGO declined to...

https://container-news.com/mabux-expects-no-oil-market-balance-in-2020/

Oil Market Makes a Come Back After Three Weeks

According to a recent news report in the Bloomberg, written by Claire Ballentine and Vildana Hajric, stocks are mixed and oil price rises most in almost three weeks.

Stocks mixed

U.S. stocks

Most of the U.S. stocks were mixed.  This scenario prevailed as the investors happen to sell some of the high-flyers pushing the U.S. equities to record highs.

Crude oil rallied and the dollar went on to touch a one-week high.

Stock market index
  • The S&P 500 approached its all-time high reached prior to the...

https://mfame.guru/oil-market-makes-a-come-back-after-three-weeks/

Potential Geopolitical Risks Hitting Oil Market in 2020

The oil market is closing out 2019 with a smaller geopolitical risk premium despite the September attack on Saudi Arabia’s Abqaiq facility exposing a staggering supply vulnerability, reports Platts.

Greg Priddy, Stratfor’s director of global energy and Middle East, argues the oil market can no longer hold onto a risk premium, between hedging and the responsiveness of US shale production.

He added that a sharp premium would only return in the event of a major and prolonged oil supply disruption.

Pri...

http://mfame.guru/potential-geopolitical-risks-hitting-oil-market-in-2020/

IMO Laws Move the Bar on Low Sulphur Sweet Crudes

IMO 2020 shipping fuel regulation has triggered a shift in oil market fundamentals, increasing the desirability of low sulphur, sweeter crudes with the ability to be blended into the low sulphur fuel oil pool, reports ICIS.

As a result, the discount of sour to sweet crude has widened to 18-month highs, presenting refiners with both challenges and opportunities.

IMO 0.5% fuel rule

The IMO announced in 2016 that from 2020 onwards, only marine fuels with a sulphur content below 0.5% could be used in...

http://mfame.guru/imo-laws-move-the-bar-on-low-sulphur-sweet-crudes/

Year End Witnesses a Plunge in Oil Market

Crude oil prices were up in Asia-Pacific markets as Chinese manufacturing data came in stronger than expectations, reports Freight Investor Services.

Deeper production cuts

The weekend just gone brought news that China’s large, state-linked manufacturing sector returned to expansion this month, albeit very modestly after six straight months of contraction.

Iraq said that OPEC and its allies will consider deeper production cuts, though the comments come after the coalition had widely signalled...

http://mfame.guru/year-end-witnesses-a-plunge-in-oil-market/

IMO 2020 Starts To Jolt Oil Market

  • Price of low-sulfur, heavier oils that refineries make and then reprocess into transport fuels like gasoline and diesel has jumped in Europe.
  • Market is paying a higher premium for low-sulfur material than it did before because people are looking to stockpile low-sulfur bunker fuel.
  • Historical link with prices for the finished fuels is now being disrupted by the need to produce cleaner marine fuels.
  • Around 35 million barrels of 0.5% fuel already in storage, there’s potential for roughly the...

http://mfame.guru/imo-2020-starts-to-jolt-oil-market/

The ‘biggest change in oil market history’ is less than six months away (CNBC)

  • On January 1, 2020, the International Maritime Organization (IMO) will enforce new emissions standards designed to significantly curb pollution produced by the world’s ships.
  • “It is the biggest change in oil market history,” Steve Sawyer, senior analyst at energy consultant Facts Global Energy, told CNBC.
  • The forthcoming measures are widely expected to create an oversupply of high-sulfur fuel oil while sparking demand for IMO-compliant products.

Tens of thousands of ships sailing the world’s...

https://container-news.com/biggest-change-oil-market-history-less-than-six-months-away/

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