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Commentary

Brent closed down $1.90 last night to $64.73, WTI closed at $61.64, down $1.37. Two months down in another year and for the crude oil market, time really does fly when you're having fun. February saw a reversal in sentiment for the crude oil market with Brent clocking a 5% drop and, to be honest, it could have been a lot worse - on the 12th Feb Brent was $62.50, so you could say Brent has recovered somewhat. I think the market has come to realise the fact that, fundamentally, the world for oil producers isn't as rosey as they would have hoped a few months back. The US is obviously on a crusade to produce as much crude oil as possible without even the slightest inclination on where the price of the stuff they are producing is. It's taken the market about 7 weeks to realise it, but I think sentiment has dampened down. I still think we will float around this $65 per bbl pivot point, however, unless something really dramatic happens or an itchy-fingered OPEC minister comes out and says the cuts will be deepened. I really don't think that OPEC will do that. Surely even they have to now acknowledge that the US is willing to do whatever it takes to take market share, so trying to "stabilise" the oil market by saying they will deepen the cuts is handing market share to Donnie on a plate.

Fuel Oil Market (February 28)

The front crack opened at -11.35, strengthening to -10.85, before weakening to -11.05. The Cal 19 was valued at -15.50.

Asia's front-month viscosity spread held steady on Wednesday, as buying interest for physical cargoes of 180 cSt fuel oil cargoes emerged in the Singapore trading window but failed to attract any suppliers.

The front-month viscosity spread, the price differential between 180 cSt and 380 cSt fuel oil, held at $7.50 a tonne on Wednesday, unchanged from the previous session but slightly lower from an eight-month high of $7.75 a tonne on Monday.

Fujairah fuel oil inventories fell 20 percent to a record low of 4.84 million barrels (about 0.722 million tonnes) in the week to Feb. 26, data via S&P Global Platts showed.

Economic Data and Events

* ~8am: Singapore onshore oil-product stockpile data

* ~12pm Russian refining maintenance schedule from ministry

* 1:30pm: U.S. Personal Income, Jan.

* 1:30pm: U.S. Initial Jobless Claims, Feb. 24

* 1:30pm: U.S. Continuing Claims, Feb. 17

* 2:45pm: U.S. Markit Manufacturing, Feb. (final)

* 2:45pm: Bloomberg Consumer Comfort, Feb. 25

* 3pm: U.S. ISM Manufacturing, Feb.

Singapore 380 cSt

Apr18 - 352.50 / 354.50

May18 - 352.00 / 354.00

Jun18 - 351.25 / 353.255

Jul18 - 350.25 / 352.25

Aug18 - 348.75 / 350.75

Sep 18 - 347.50 / 349.50

Q2-18 - 351.75 / 353.75

Q3-18 - 348.50 / 350.50

Q4-18 - 342.75 / 345.25

Q1-19 - 334.25 / 336.75

CAL19 - 305.25 / 309.25

CAL20 - 228.75 / 236.75

Singapore 180 cSt

Apr18 - 359.75 / 361.75

May18 - 359.25 / 361.25

Jun18 - 358.50 / 360.50

Jul18 - 357.75 / 359.75

Aug18 - 356.25 / 358.25

Sep 18 - 355.00 / 357.00

Q2-18 - 359.00 / 361.00

Q3-18 - 356.00 / 358.00

Q4-18 - 350.25 / 352.75

Q1-19 - 342.00 / 344.50

CAL19 - 314.50 / 318.50

CAL20 - 244.50 / 252.50

Rotterdam Barges

Apr18 340.25 / 342.25

May18 339.50 / 341.50

Jun18 338.50 / 340.50

Jul18 337.00 / 339.00

Aug18 335.25 / 337.25

Sep 18 - 332.75 / 334.75

Q2-18 339.25 / 341.25

Q3-18 334.75 / 336.75

Q4-18 325.75 / 328.25

Q1-19 318.00 / 320.50

CAL19 282.25 / 286.25

CAL20 212.25 / 220.25