A look at crude oil quality across countries that have committed
to cutting production, tumbling
global gas prices, and trends in
steelmaking raw materials all feature in this week’s pick of visuals.
1. As OPEC+ agreement kicks in, heavier crude could see bulk of cuts
What’s happening? The OPEC+ production cuts go into effect May 1, and the beleaguered oil market will be watching to see if the 23-country alliance led by Saudi Arabia and Russia fulfills its commitment to rein in 9.7 million b/d of crude output.
What’s next? The market will also be counting on economically forced shut-ins by other key producers, such as the US and Canada, to bring global supply down in line with coronavirus-hit demand. Crudes towards the heavier end of the quality spectrum are likely to see the bulk of OPEC+ cuts, though the coalition produces grades of all qualities.
Go deeper: Explore crude quality with S&P Global Platts’ Periodic Table of Oil
2. Singapore oil trader’s bankruptcy stuns bunker, storage sectors
What’s happening? Hin Leong Trading’s financial crisis is likely one of the world’s biggest bankruptcies in oil trading and the most significant after this year’s historic oil price crash. It has shunted Singapore’s bunker and oil storage sectors into uncertainty, with banks heard to be tightening credit to many players. Bunker suppliers including Minerva Bunkering and TFG Marine, who were both awarded bunker licenses recently, are expected to fill the supply gap. Gasoline has also been affected. Overall, the company’s trades represented 55% of total gasoline trades during the Platts MOC process between April 2019 and March 2020. Rivals like Saudi Aramco and Petronas are likely to fight for market share after HLT’s ouster.....MUCH MORE
What’s next? Market participants will be monitoring developments, to determine if the possibility of HLT’s successful restructure exists, while keeping an eye on commodity prices to asses if they stay supported, reflecting the supply shock created by the situation. The HLT debacle has also sparked opportunities for further consolidation in the Singapore market, with several suitors including Sinopec heard to be interested in acquiring assets of the beleaguered company....
HT: ZH
