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Commentary

Brent closed last night at $78.79 down $1.01 and WTI closed at $70.71 down $1.13. Well, the market has reeled back from $80 in much the same fashion as Donald Trump has done with the North Korea summit. The market seems to have woken up to the fact that there is actually quite a lot of oil still around regardless of Venezuela and pending Iranian sanctions. The US are happily drilling away and it seems like OPEC may start finally cashing in on what has been a very successful change of policy since Jan last year. The latter was inevitable, and I am quite impressed these rumours haven't surfaced before now. I think owing to the meeting on June 22 in Vienna, crude could stay in the 75-80 range until then. It seems pretty happy here.

Fuel Oil Market (May 24)

The front crack opened at -11.15, strengthening to -11.10, before weakening to -11.50. The Cal 19 was valued at -17.60

Weighed down by higher crude prices, Asia's June 180 cSt fuel oil crack to Brent crude slipped to a near one-week low. Fuel oil cracks have been supported by rising seasonal demand for cooling in the summer and tighter supplies amid refinery maintenance and outages in key producing regions.

The June 180 cSt crack narrowed its discount to Brent crude to $7.27 a barrel on Thursday, down from minus $7.08 a barrel in the previous session. The June 380 cSt fuel oil crack to Brent crude was trading at a discount of about $11.35 a barrel on Thursday.

Singapore weekly onshore fuel oil inventories slipped 2 percent, or 332,000 barrels (about 50,000 tonnes), to a three-week low of 18.341 million barrels (2.737 million tonnes) in the week ended May 23

Economic Data and Events: (Times are London.)

* 1:30pm : U.S. Durable Goods Orders, April (prelim)

* 3pm: University of Michigan Sentiment, May (final)

* 6pm: Baker Hughes rig count

* ~6:30pm: ICE weekly commitments of traders report for Brent, gasoil

* ~8:30pm: CFTC weekly commitments of traders report on various U.S. futures and options contracts

* St. Petersburg Forum, with Presidents Vladimir Putin and Emmanuel Macron, and Japanese Prime Minister Shinzo Abe scheduled to participate in a panel, moderated by Bloomberg Editor-in-Chief John Micklethwait, 2nd day of 3

* Russia full month June loading program

Singapore 380 cSt

Jun18 - 437.25 / 439.25

Jul18 - 434.50 / 436.50

Aug18 - 431.00 / 433.00

Sep18 - 427.25 / 429.25

Oct18 - 423.75 / 425.75

Nov18 - 420.25 / 422.25

Q3-18 - 431.00 / 433.00

Q4-18 - 420.50 / 422.50

Q1-19 - 408.25 / 410.75

Q2-19 - 394.25 / 396.75

CAL19 - 373.25 / 376.25

CAL20 - 300.75 / 305.75

Singapore 180 cSt

Jun18 - 446.75 / 448.75

Jul18 - 444.25 / 446.25

Aug18 - 441.00 / 443.00

Sep18 - 437.50 / 439.50

Oct18 - 434.50 / 436.50

Nov18 - 431.25 / 433.25

Q3-18 - 440.75 / 442.75

Q4-18 - 431.25 / 433.25

Q1-19 - 419.50 / 422.00

Q2-19 - 406.00 / 408.50

CAL19 - 387.75 / 390.75

CAL20 - 314.75 / 319.75

Rotterdam Barges

Jun18 - 422.75 / 424.75

Jul18 - 420.25 / 422.25

Aug18 - 416.75 / 418.75

Sep18 - 412.75 / 414.75

Oct18 - 408.25 / 410.25

Nov18 - 403.50 / 405.50

Q3-18 - 416.50 / 418.50

Q4-18 - 403.25 / 405.25

Q1-19 - 390.50 / 393.00

Q2-19 - 375.75 / 378.25

CAL19 - 352.25 / 355.25

CAL20 - 286.75 / 291.75