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Commentary

Brent closed last night down $0.02 to $73.86 and WTI closed at $67.70. As the oil market settles down again after another busy MPGC, the price of Brent seems to be settling down to and enjoying a $70 handle. It all went a bit nuts at one point, didn't it? I was really starting to believe that we'd break the $75.60 resistance and be on our way to the lofty $85 per bbl as the rally seemed relentless. I thought the market might react on the back of the Macron/ Trump meeting regarding Iran but, as with any news that isn't of a bullish nature, it is ignored in the same way your wife ignores you the whole day yesterday after a very late finish on Monday night. Awkward. It's Wednesday, so we all know what that means: EIA data. Apparently, we will see a build on crude and draws on everything else. I read yesterday that China are buying more crude oil than ever, but they also have more products to sell than ever. So, good for crude demand, but will flood the products market. Fixing one problem and then causing another. Anyway, watch Brent/WTI; it's trading -6.16 at time of writing and Cushing stocks later could blow it further... who knows.

Fuel Oil Market (April 24)

The front crack opened at -14.20, strengthening to -14.15, before weakening to -13.60, closing -14.30. The Cal 19 was valued at -17.10.

Asia's 380 cSt high-sulphur fuel oil market jumped on Tuesday on signs of tight finished grade supplies of the fuel after reports that some off-specification quantities of the fuel were circulating in the bunker fuels market on Monday. Cash premiums for 380 cSt soared to an 11- month high on Tuesday amid elevated deal values in the Singapore trading window, while the front-month time spread of the fuel jumped to its highest since October.

Spot ex-wharf premiums for 380 cSt fuel also surged to as high as $10 a tonne on Tuesday amid strong buying interest for the break-bulk cargoes of the fuel and limited supplier offers. With the Singapore fuel oil market already tightening over the past weeks amid rising seasonal demand for the fuel, the fuel oil market could sustain these elevated price levels for at least some weeks.

Economic Data and Events: (Times are London.)

* 3:30pm: EIA weekly oil inventory report; TopLive blog starts at 3:20pm

* CWC's China LNG and Gas International Summit in Beijing. Day one of two. Speakers include Exxon, Shell, Cnooc, CNPC, Cheniere Marketing, Petronas

* AIPN summit in London, final day

* Argus Marpol summit in Houston, final day

* Russia Urals preliminary loading plan for May

** See OIL WEEKLY AGENDA for this week's events

Singapore 380 cSt

May18 - 389.00 / 391.00

Jun18 - 387.00 / 389.00

Jul18 - 385.00 / 387.00

Aug18 - 382.75 / 384.75

Sep18 - 380.75 / 382.75

Oct18 - 378.25 / 380.25

Q3-18 - 382.75 / 384.75

Q4-18 - 375.75 / 377.75

Q1-19 - 366.75 / 369.25

Q2-19 - 359.50 / 362.00

CAL19 - 333.50 / 336.50

CAL20 - 268.00 / 273.00

Singapore 180 cSt

May18 - 398.75 / 400.75

Jun18 - 396.75 / 398.75

Jul18 - 395.00 / 397.00

Aug18 - 393.00 / 395.00

Sep18 - 391.00 / 393.00

Oct18 - 389.00 / 391.00

Q3-18 - 393.00 / 395.00

Q4-18 - 386.75 / 388.75

Q1-19 - 378.00 / 380.50

Q2-19 - 371.00 / 373.50

CAL19 - 348.00 / 351.00

CAL20 - 292.00 / 297.00

Rotterdam Barges

May18 - 374.25 / 376.25

Jun18 - 373.50 / 375.50

Jul18 - 371.75 / 373.75

Aug18 - 369.00 / 371.00

Sep18 - 365.75 / 367.75

Oct18 - 362.00 / 364.00

Q3-18 - 368.75 / 370.75

Q4-18 - 358.25 / 360.25

Q1-19 - 349.25 / 351.75

Q2-19 - 338.50 / 341.00

CAL19 - 313.50 / 316.50

CAL20 - 243.00 / 248.00