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Commentary

Brent crude was down 25 cents, or 0.4 percent, at $66.38 a barrel. On Tuesday, Brent fell 87 cents to $66.63 by 07:55 GMT, U.S. WTI was down $32 cents, or 0.5 percent, at $62.69 a barrel by 07:55 GMT, after falling 90 cents in the previous session. I have decided that the best way to explain what cold weather does to Britain is to use an analogy: snow to Britain is what kryptonite is to Superman. It has totally immobilised things, and has meant that all logic has gone out the window. There has been more snow today, yet more transport is running, how does that work? But what has this got to do with the oil market? Well, seemingly for some, logic has gone of the window, as U.S. rigs increase, U.S. production increases, demand figures elusive, crude prices rise. There is also a new U.S.-Russian rivalry developing. Previously, it was a superstate emergence battle in the 19th century, then a war of ideologies between communism v Western capitalism, the space race, cyber warfare, and now oil. The U.S. is predicted to overtake Russia in production by 2019. With this happening, I'm sure that with their history, Russia is seething at the States's ability to increase production, while Russia is stuck in its agreement with OPEC. Like a caged animal, they will be chomping at the bit to get increasing levels again. Asia industry data has been weak, knocking confidence in their ability to be the powerhouse of the demand growth - especially pertinent for China and India. Let's see what the rest of the week brings.

Fuel Oil Market (February 27)

The front crack opened at -11.50, strengthening to -11.45, before weakening to -11.50, closing -11.45. The Cal 19 was valued at -15.50. .

Asia's high-sulphur fuel oil crack for March widened its discount to Brent crude on Tuesday, slipping to a four-week low amid limited trade activity and weak market sentiment.

The front-month 180 cSt fuel oil crack to Brent settled at minus $8.24 a barrel, its widest discount since Jan. 29 when it was at minus $8.76 a barrel.

The weaker fuel oil crack came despite lower crude prices on Tuesday amid concerns about rising U.S. oil output offsetting signs of stronger demand and faith in the ability of OPEC production curbs to curtail supply.

Market sentiment has been weighed down in recent weeks by sluggish demand and a slight overhang in supplies.

Economic Data and Events

* 12pm: MBA Mortgage Applications, Feb. 23

* 1:30pm: U.S. Personal Consumption, 4Q

* 1:30pm: U.S. GDP, 4Q

* 2:45pm: U.S. Chicago Purchasing Manager, Feb.

* 3:30pm: EIA issues weekly U.S. oil inventory report

* EIA releases Petroleum Supply Monthly

* Genscape weekly ARA crude stockpiles report

* Saudi Aramco is expected to release March LPG prices

* Primorsk diesel loading program for March

* Fed Chairman Jerome Powell to testify before House Financial Services Committee

Singapore 380 cSt

Mar18 - 361.50 / 363.50

Apr18 - 361.00 / 363.00

May18 - 360.50 / 362.50

Jun18 - 359.75 / 361.75

Jul18 - 358.75 / 360.75

Aug18 - 357.50 / 359.50

Q2-18 - 360.50 / 362.50

Q3-18 - 357.50 / 359.50

Q4-18 - 351.75 / 354.25

Q1-19 - 343.50 / 346.00

CAL19 - 313.50 / 317.50

CAL20 - 237.00 / 245.00

Singapore 180 cSt

Mar18 - 368.75 / 370.75

Apr18 - 368.00 / 370.00

May18 - 367.50 / 369.50

Jun18 - 366.75 / 368.75

Jul18 - 365.75 / 367.75

Aug18 - 364.50 / 366.50

Q2-18 - 367.50 / 369.50

Q3-18 - 364.50 / 366.50

Q4-18 - 358.75 / 361.25

Q1-19 - 351.25 / 353.75

CAL19 - 323.00 / 327.00

CAL20 - 253.00 / 261.00

Rotterdam Barges

Mar18 348.00 / 350.00

Apr18 348.50 / 350.50

May18 348.00 / 350.00

Jun18 347.25 / 349.25

Jul18 345.75 / 347.75

Aug18 344.00 / 346.00

Q2-18 348.00 / 350.00

Q3-18 344.00 / 346.00

Q4-18 334.75 / 337.25

Q1-19 326.25 / 328.75

CAL19 290.75 / 294.75

CAL20 220.75 / 228.75