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Commentary

Brent closed last night up $0.71 to $79.22 and WTI closed at $72.24, up $0.96. On this day in 1980, Pac-Man was released. We all know it and we all love it. It involves directing a little yellow dot around a board and ensuring he doesn't get eaten by ghosts. Simple but brilliant. Times have moved on since then, but I wonder, has the oil market? Well, yes of course it has you may argue, refineries are more complex now and environmental issues are of paramount importance for big oil but fundamentally, in 1980, futures traders were still watching a ticker and reacting off headlines and only wanting the price to go one way - up. Nothing has changed since then, apart from the fact traders don't wear stupid jackets or shout in each other's faces anymore; they do that sitting in their chairs clicking the "lift" button and trolling people on social media. At one stage yesterday, the market traded down to $78.10 per bbl and it did look like perhaps the market had had enough of supporting prices, like an exhausted donkey carrying an overweight farmer around the fields of 15th century France. However, looking for any other excuse, geopolitics have provided the market with new uncertainty factors to rack up prices again. So apart from the dire Venezuelan situation, the souring North Korea situation, the escalating situation between Israel and its neighbours, the uncertain situation of Italy's government, the degrading situation of Iranian sanctions, everything in the world is sunshine and rainbows. And on that happy note have a good day.

Fuel Oil Market (May 21)

The front crack opened at -10.80, strengthening to -10.45, weakening to -10.80. The Cal 19 was valued at -17.20.

Asia's June 180 cSt fuel oil crack to Brent crude climbed to a six-week high on Monday, supported by weaker crude prices when compared to Friday as well as rising seasonal demand for cooling and tighter supplies amid ongoing refinery maintenance in key producing regions

The June 180 cSt crack narrowed its discount to Brent crude to $6.92 a barrel on Monday up from minus $7.41 a barrel on Friday

Improved supply availability of finished grade bunker fuels and dampened demand for bunker fuels due to higher prices have weighed on 380 cSt ex-wharf and delivered premiums over the past two weeks.

Economic Data and Events: (Times are London.)

* 3pm: Richmond Fed. Manf Index, May

* 9:30pm: API issues weekly U.S. oil inventory report

* Bloomberg-compiled Refinery Snapshot for U.S. and Canada; gives offline capacity projections for crude units and FCCs

* Shell AGM, The Hague in the Netherlands

* See OIL WEEKLY AGENDA for this week's events

Singapore 380 cSt

Jun18 - 449.75 / 451.75

Jul18 - 447.00 / 449.00

Aug18 - 443.75 / 445.75

Sep18 - 440.50 / 442.50

Oct18 - 437.00 / 439.00

Nov18 - 433.50 / 435.50

Q3-18 - 443.75 / 445.75

Q4-18 - 433.50 / 435.50

Q1-19 - 421.25 / 423.75

Q2-19 - 408.00 / 410.50

CAL19 - 381.75 / 384.75

CAL20 - 299.25 / 304.25

Singapore 180 cSt

Jun18 - 459.50 / 461.50

Jul18 - 457.00 / 459.00

Aug18 - 454.00 / 456.00

Sep18 - 451.00 / 453.00

Oct18 - 447.75 / 449.75

Nov18 - 444.50 / 446.50

Q3-18 - 454.00 / 456.00

Q4-18 - 444.50 / 446.50

Q1-19 - 432.75 / 435.25

Q2-19 - 420.00 / 422.50

CAL19 - 396.50 / 399.50

CAL20 - 323.50 / 328.50

Rotterdam Barges

Jun18 - 435.75 / 437.75

Jul18 - 432.75 / 434.75

Aug18 - 429.25 / 431.25

Sep18 - 425.25 / 427.25

Oct18 - 420.75 / 422.75

Nov18 - 416.00 / 418.00

Q3-18 - 429.00 / 431.00

Q4-18 - 416.25 / 418.25

Q1-19 - 403.75 / 406.25

Q2-19 - 388.75 / 391.25

CAL19 - 361.00 / 364.00

CAL20 - 292.00 / 297.00