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Commentary

Brent crude futures were at $69.51 per barrel, up $60 cents, or 0.9 percent at 07:53 GMT. For the week, Brent was set for a gain of about $5 percent, its strongest showing since July last year, while WTI was up about 4.2 percent. U.S. WTI crude futures were at $64.95 a barrel, up $65 cents, or 1 percent, from their previous settlement. There is only two bits of news this morning: What the hell is Brent doing up at almost $70 a barrel again, and it looks like China has been tangoed. The Saudis have used their classic 'oh no there's falling Brent, quick say something' tactic of floating the idea of pushing the production cuts into 2019. Trump's announcement of tariffs on Chinese imports, as well as the selection of John Bolton, has got speculation going wild of a trade war with China and a much more robust approach to diplomacy with Iran. Fuel oil-wise, rising inventories in Singapore and other major ports, and higher Brent, have weighed on crack levels, taking a lot of the sting out of this Brent rise and keeping it to around a $5 movement for the flat price. I can't remember the last time I saw a 12 handle at the start of crack level. There are stranger, and exciting times ahead with all these volatility inducing factors coming into play. Buckle up, put your lucky pants on, and ill see you next week.

Fuel Oil Market (March 22)

The front crack opened at -12.25, strengthening to -12.00, before weakening to -12.10. The Cal 19 was valued at -15.10.

Asia's 380 fuel oil cash differential slid to its widest discount since July 2016 on Thursday, as suppliers in the Singapore trading window lured buyers with lower price levels.

Cash discounts for 380 cSt fuel oil fell to minus $1.94 a tonne to Singapore quotes, from a discount of $1.20 per tonne in the previous session.

Aggressive offers from suppliers of the 380 cSt bunker fuel with some seeking to clear their landed inventories, also weighed on ex-wharf and delivered differentials trade sources said.

380 cSt delivered fuel oil deals were heard to have concluded at $372.50 and $374 per tonne, trade sources said.

Economic Data and Events

* 12:30pm: U.S. Durable Goods Orders for Feb. preliminary, est. 1.6% (prior -3.6%)

* 2pm: U.S. New Home Sales for Feb., est. 620k (prior 593k)

* 5pm: Baker Hughes weekly U.S. oil, gas rig count

* ICE wkly commitments of traders report for Brent, gasoil

* CFTC weekly scheduled report on futures and options positions

* Offshore Technology Conference Asia, final day

Singapore 380 cSt

Apr18 - 371.25 / 373.25

May18 - 371.00 / 373.00

Jun18 - 370.50 / 372.50

Jul18 - 369.50 / 371.50

Aug18 - 368.25 / 370.25

Sep18 - 366.00 / 368.00

Q2-18 - 371.00 / 373.00

Q3-18 - 368.00 / 370.00

Q4-18 - 362.50 / 365.00

Q1-19 - 354.50 / 357.00

CAL19 - 323.75 / 327.75

CAL20 - 265.75 / 273.75

Singapore 180 cSt

Apr18 - 379.25 / 381.25

May18 - 378.75 / 380.75

Jun18 - 378.00 / 380.00

Jul18 - 377.00 / 379.00

Aug18 - 375.75 / 377.75

Sep18 - 373.75 / 375.75

Q2-18 - 378.75 / 380.75

Q3-18 - 376.00 / 378.00

Q4-18 - 370.50 / 373.00

Q1-19 - 363.00 / 365.50

CAL19 - 336.75 / 340.75

CAL20 - 289.75 / 297.75

Rotterdam Barges

Apr18 359.25 / 361.25

May18 359.50 / 361.50

Jun18 359.00 / 361.00

Jul18 357.50 / 359.50

Aug18 355.50 / 357.50

Sep18 353.00 / 355.00

Q2-18 359.25 / 361.25

Q3-18 355.25 / 357.25

Q4-18 346.00 / 348.50

Q1-19 338.00 / 340.50

CAL19 304.25 / 308.25

CAL20 242.25 / 250.25