India's Covid-19 pandemic sends European oil prices lower

London (Quantum Commodity Intelligence) - The week started on a bearish note with oil futures dropping on concerns of the Covid-19 pandemic in India, although losses were capped by signs of a speedy recovery in US oil demand amid a fast roll out of vaccines.

There was also a sharp divergence in oil futures again.

June Brent, heading to expiry soon, was detached from the rest of the Brent curve, dropping $1.29/b by 16.30 UK time compared to Friday, but July Brent was more reflective of the oil complex with a fall of $1.01/b.

Low Sulfur gasoil futures softened, but the front month April contract was only down $2.25/mt (30 cts/b), trading at $522.75/mt the time of market's close.

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Naphtha cargo prices were little changed, dropping just 25 cts/mt, strengthening crack values further.

Gasoline prices were largely lower, with Eurobob E5 barges in AR down $6/mt and gasoline premium unleaded barges in AR down $4/mt, but Eurobob E10 rose against the grain by 75 cts/mt. However, E10's move left the gasoline barge market aligned, with E5 prices $3/mt lower than E10 which in turn was $2.50/mt lower than premium unleaded gasoline.

Jet cargo prices intoi north Europe dropped $3.25/mt amid slightly softer bids and offers, although there was no trade.

Diesel barges in ARA followed the slide in European distillate futures lower, slipping $2.25/mt, and maintaining a $1.50 discount versus front month Low Sulfur Gasoil futures.

High sulfur fuel oil barges and marine fuel (0.5% sulfur) barges in ARA dropped $3.50/mt and $23.75/mt respectively amid thin trade.