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Commentary

Brent closed last night at $75.08, down $0.26, and WTI closed at $65.07, down $0.78. Like a Colombian defender, this market looks interesting for all of about 3 minutes. I mentioned a few weeks ago that we will more than likely flirt around the $75-$80 level in the build up to the OPEC meeting, and at the moment we are trading around the bottom of the range. I think, however, that there is definite room to the upside over the course of the coming days. It is looking more and more likely that this week's OPEC meeting is going to be one of the most difficult meetings OPEC has had for a while. Fractures have opened up within the cartel that actually hasn't been a particular issue between themselves, but that of Mr Trump and his administration with regards to imposing sanctions on both Venezuela and Iran. I've got an idea: why don't you send Mr Trump one of those gold plated envelopes with an invitation for the USA to join OPEC? If you all want cohesion and a "fair market", then why try and fight the world's second biggest producer and second biggest consumer? Why not invite him to your biannual meetings? As Gandhi once said: "It is easy enough to be friendly to one's friends. But to befriend the one who regards himself as your enemy is the quintessence of true religion. The other is mere business." Gandhi took on the biggest Empire in human history; maybe OPEC should take a leaf out of his book and take on the biggest modern 'empire'. Good day.

Fuel Oil Market (June 19)

The front crack opened at -10.05, weakening to -10.15, before strengthening to -9.90. The Cal 19 was valued at - 16.60.

Asia's July fuel oil viscosity spread was at $10.75 a tonne on Tuesday, holding steady since June 12.

The viscosity spread is the price differential between 180 cSt and 380 cSt fuel oil and the value reflects how strong or weak the fuel oil market is.

Cash deals came to a standstill after a total of 140,000 tonnes changed hands in the previous session, the highest volume traded since May 25.

Economic data/events (Times are London.)

* OPEC’s International Seminar starts, with participation of all OPEC ministers, CEOs of Sonangol, BP, Total, among others, 1st day of 2. Click here for program

* 12pm: U.S. MBA Mortgage Applications, June 15

* 3pm: U.S. Existing Home Sales for May

* 3:30pm: U.S. EIA weekly oil inventory report

Singapore 380 cSt

Jul18 - 430.75 / 432.75

Aug18 - 425.50 / 427.50

Sep18 - 420.25 / 422.25

Oct18 - 415.75 / 417.75

Nov18 - 412.00 / 414.00

Dec18 - 409.25 / 411.25

Q3-18 - 425.50 / 427.50

Q4-18 - 412.75 / 414.75

Q1-19 - 402.50 / 405.00

Q2-19 - 392.50 / 395.00

CAL19 - 363.50 / 366.50

CAL20 - 288.50 / 293.50

Singapore 180 cSt

Jul18 - 441.25 / 443.25

Aug18 - 436.75 / 438.75

Sep18 - 431.50 / 433.50

Oct18 - 426.75 / 428.75

Nov18 - 423.25 / 425.25

Dec18 - 420.25 / 422.25

Q3-18 - 436.50 / 438.50

Q4-18 - 424.00 / 426.00

Q1-19 - 414.25 / 416.75

Q2-19 - 404.25 / 406.75

CAL19 - 378.00 / 381.00

CAL20 - 312.00 / 317.00

Rotterdam 3.5%

Jul18 - 412.50 / 414.50

Aug18 - 408.75 / 410.75

Sep18 - 404.25 / 406.25

Oct18 - 399.75 / 401.75

Nov18 - 395.50 / 397.50

Dec18 - 391.25 / 393.25

Q3-18 - 408.50 / 410.50

Q4-18 - 395.25 / 397.25

Q1-19 - 385.00 / 387.50

Q2-19 - 371.50 / 374.00

CAL19 - 342.00 / 345.00

CAL20 - 275.00 / 280.00