European oil prices tick higher, Covid-19 demand worries persist

London (Quantum Commodity Intelligence) - Oil futures ticked slightly higher on Tuesday, but prices remained rangebound as the market waited for more signals over global oil demand amid the contrasting fortunes of countries handling the Covid-19 pandemic.

Early signals suggest OPEC+ will stick to their guns and continued to ease increases in supply in May despite the spike of infections in the world's third-largest oil importer India.

But the fast roll out of the vaccine in the US, and increasingly Europe, continued to keep oil futures steady.

June Brent continued to detach from the rest of the Brent curve as it headed towards expiry this week.

July and May Brent were up 29 cts/b and 33 cts/b respectively by 1630 UK time compared to Monday, lifting the European oil complex.

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Naphtha cracks continued their recent surge, with prices gaining $7.50/mt (83 cts/b).

Gasoline prices largely followed the gains in crude, with Eurobob E5, E10 and premium unleaded barges in ARA up $3.75/mt, $3/mt and $3.50/mt, respectively.

Jet cracks nudged slightly higher. Barges in FARAG were offered at $22/mt above May Low Sulfur Gasoil futures, while cargoes were offered into Rotterdam at $23.50/mt above front month distillate futures.

Diesel and gasoil prices saw a range of low single digit rises. Diesel barges in ARA traded at just $1.25/mt below May Low Sulfur Gasoil futures.

There was little change in bunker fuel prices, with small gains in high sulfur fuel oil and marine fuel (0.5% sulfur) barges in ARA to keep in lien with crude.