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Brent closed down $0.23 last night to $63.61 and WTI closed at $57.99, down $0.12. Well one day to go to the OPEC meeting and you wouldn't say that it's looking particularly promising would you? News that there will be caveats in any extension agreement have spooked the market like a Christmas turkey when the farmer is being overly nice. Look, this market is a fickle one and one that isn't all that clever regardless of how many articles you read about algorithms or renewed demand or whatever. It's simple: bullish news = prices go up; bearish news = prices go don't up as much/slight price check. It was also plain for all to see that since the end of the summer all the talk was going to be about the OPEC meeting tomorrow. Various ministers have come out and said "Yeah don't worry, the cuts are going to be extended, no probs" or "We are going to do everything we must to rebalance the market". Ummm. No you're not actually mate. You'll talk about it but will you ACTUALLY do anything? I have made it clear over the last two weeks that the market has priced in the extension of the cut already and boy have the funds bought in to it with the ferocity of a hungry lion. Anything that even remotely resembles that this is not going to happen and we will probably see a correction. Then I'm sure you will see them scramble around and Saudi Arabia writing "Dear fellow OPEC ministers, maybe we need an EGM?". EIA data is due out later and apparently there will be a build on crude stocks. Not particularly encouraging for the bulls seeing as the Thanksgiving holidays should always drive up demand. Alas not, apparently. So a weird double catch 22 situation for OPEC: they have to extend the cut to keep prices up, but if they don't they can increase production to pressure on the U.S., but prices will fall, but if they do extend the cut U.S. production may increase a lot more, which will not help inventories, but if they extend the cut without extending the cut, they can reduce while increasing their volumes, which will crash as well as support prices, forcing the U.S. to cut and increase their production.

Fuel Oil Market (November 28)

The front crack opened at -8.90, weakening to -9.15, before strengthening to -9.10. The Cal 18 was valued at -8.15.

Sentiment in Asia's fuel oil market softened on Tuesday as market participants continued to point to a steady stream of arbitrage supplies flowing into Singapore for the remained of the year.

Total fuel oil flows into East Asia are expected to close at nine-month high levels above 7 million tonnes in November.

A meeting of global oil producers in Vienna this week to discuss extending a system of output cuts will not be easy, United Arab Emirates energy minister Suhail bin Mohammed al-Mazroui said.

However, Mazroui added that he was personally optimistic that producers would reach an agreement that served the market. OPEC will meet in Vienna on Thursday.

Economic Data/Events: (UK times)

* 12pm: U.S. MBA Mortgage Applications, Nov. 24

* 1:30pm: U.S. GDP, 3Q

* 3pm: U.S. Pending Home Sales, Oct.

* 3pm: Fed Chair Janet Yellen to address Joint Economic Committee of Congress on the U.S. economic outlook

* 3:30pm: EIA issues weekly U.S. oil inventory report; TOPLive blog coverage begins 3:25pm

* Other events, no specific time

** Bloomberg New Energy Finance Future of Energy Summit in Shanghai, final day

** Genscape weekly ARA crude stockpiles report

** OPEC's Joint Ministerial Monitoring Committee meets in Vienna

Singapore 380 cSt

Dec17 - 359.50 / 361.50

Jan18 - 358.75 / 360.75

Feb18 - 358.25 / 360.25

Mar18 - 358.25 / 360.25

Apr18 - 357.75 / 359.75

May18 - 356.75 / 358.75

Q1-18 - 358.50 / 360.50

Q2-18 - 356.25 / 358.25

Q3-18 - 351.50 / 354.00

Q4-18 - 346.25 / 348.75

CAL18 - 352.75 / 355.75

CAL19 - 318.25 / 323.25

Singapore 180 cSt

Dec17 - 363.25 / 365.25

Jan18 - 363.00 / 365.00

Feb18 - 363.25 / 365.25

Mar18 -363.50 / 365.50

Apr18 - 363.50 / 365.50

May18 - 363.00 / 365.00

Q1-18 - 363.25 / 365.25

Q2-18 - 362.00 / 364.00

Q3-18 - 357.75 / 360.25

Q4-18 -352.75 / 355.25

CAL18 - 359.00 / 362.00

CAL19 - 327.00 / 332.00

Rotterdam 380 cSt

Dec17 342.00 / 344.00

Jan18 342.50 / 344.50

Feb18 342.75 / 344.75

Mar18 343.00 / 345.00

Apr18 342.75 / 344.75

May18 342.00 / 344.00< br>
Q1-18 342.75 / 344.75

Q2-18 342.00 / 344.00

Q3-18 337.50 / 340.00

Q4-18 329.25 / 331.75

CAL18 336.75 / 339.75

CAL19 297.75 / 302.75