Brent flat, but gasoline and distillates soften
Brent was little changed by late Monday, held steady by a sharp drop in the dollar index and news of a force majeure for Libyan crude exports despite concerns about the surge in Covid-19 in India.
The greenback was down to 91.11 points by 16.30 UK time, down from 91.56 from the same time Friday.
Libya's state-owned National Oil Corporation (NOC) declared Monday the state of force majeure in the port of Hariga, one of the largest oil ports in the country, according to media reports.
The move comes after NOC subsidiary Arabian Gulf Oil Co, or Agoco, halted output at some of its oil fields, which it blamed on the government's failing to provide federal funds for operations.
This had forced Agoco to reduce its output as it was unable to "fulfill its financial and technical obligations".
Products
The naphtha crack continued to soften, dropping 36 cts/b.
Gasoline prices dipped lower amid diverse and very thin trades. Eurobob E5 barges saw just two trades, the first for 1,000 metric tons at $639.75/mt during the 9am UK time market open, and the second in the afternoon for 2,000 metric tons at $645.50/mt. The first trade was $1/mt below May paper and the second was $2/mt above. Eurobob E10 traded only once in the morning at $639.75/mt, setting the assessment, and also leaving it lower than E5. Premium unleaded barges traded at $645/mt at 16.30 UK time, just $1.50/mt higher than the E5 all day weighted average assessment.
Jet fuel barges traded at $19/mt above May Low Sulfur gasoil futures, although this left the price steeply discounted to the nearby curve. The flat price fell $3.25/mt.
Distillate futures diverged from Brent, with the front month Low Sulfur Gasoil futures contract trading at $529.25/mt at the close, down $2.25.mt from the same time Friday. Diesel and gasoil prices largely followed the futures lower. ULSD (10ppm sulfur) and gasoil (50ppm barges) continued to trade around the same levels.
Bunker fuels were a mixed bag. High sulfur fuel oil was steady, in line with crude futures, while marine fuel (0.5% sulfur) dropped $4/mt amid the softness of Low Sulfur gasoil futures.