Oil futures nudge higher, but HSFO barge prices soften

Brent slipped over the course of Monday amid concerns about the resurgence of Covid-19, particularly in Europe, but the front month crude future still climbed from Friday.

Germany, Italy and France have re-imposed lockdowns, and in the U.S., New York's city mayor urged the state to follow New Jersey's lead in delaying its re-opening.

May Brent opened Monday at $64.53/bbl, hit a high of $65.12/bbl during Asian hours, before slipping to $64.23/bbl by 4.30pm Singapore time.

By 4.30pm U.K. time, the front month crude future was little changed at $64.35/bbl, although that was still up 32 cts/bbl from the same time Friday.

Funds turned slightly more bearish Brent futures and options over the week to March 16, data from the Commitment of Traders Report for the ICE bourse showed earlier.

The managed money category added twice as many short lots in Brent futures and options than long lots over the week to last Tuesday.

The number of shorts increased 11,062 lots compared to a gain of 5,306 long lots, leaving speculative-net length down 5,756 lots over the week.

European distillate futures largely followed the path of crude futures.

April Low Sulfur Gasoil futures settled at $513.50/metric ton, up $3/mt, or around 40 cts/bbl, from Friday's settle.

Diesel barges in ARA traded between $2.75/mt and $3/mt below the front month future, little changed from Monday. Glencore and Petroinoes were the main sellers, while Total and Shell were the main buyers. 

Diesel cargoes arriving into Amsterdam were bid at 50 cts/mt and offered at $3/mt above April Low Sulfur Gasoil futures.

In the Mediterranean, diesel cargoes prices were higher than north Europe, with bids seen at $2.50/mt and offers at $6/mt above April Low Sulfur Gasoil futures.

The jet barge market in ARA was little changed, but bids and offers were far apart. Buyers were asking for barges at $14/mt above April distillate futures, while sellers were looking for premiums of $19/mt.  

Jet cargoes arriving into Rotterdam were bid at $14/mt above April Low Sulfur Gasoil futures.

There was a softer residual fuel market, contrary to the rise in Brent. 

High sulfur fuel oil barges in ARA traded between $356 and $357/mt, down from a range of $358.50 and $362/mt on Friday. 

But the 0.5% sulfur marine fuel barge market traded a dollar higher than Friday, with trades seen at $459/mt.