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Commentary

Brent closed last night up $0.38 to $73.44 and WTI closed at $68.52, up $0.71. We witnessed another day yesterday where oil prices were volatile(ish) before closing at a fairly benign level, if you can call a 0.5% increase benign, that is. Crude is up this morning on the back of anticipated stock draws in the US, according to our friends over at the API. Because API get it right ALL the time, so why not buy into figures that are about as accurate as a story published by the Sunday Sport? It should be expected that this time of year we see stock draws in the US, so sharp movements up when any bullish news comes out signals to me that this market is relying so heavily on prompt demand picking up that it is akin to the same delusional expectation that Dick Emery will secure the Premier League title in his first year as Arsenal manager. Oooh, you are awful. Interestingly, the market hasn't reacted to the fact that the first signal Trump has made that perhaps there could be a workout agreement with Iran, "We'll see what happens, but we're ready to make a real deal, not the deal that was done by the previous administration, which was a disaster,". How and why has that been ignored? I'm not saying that the November deadline is going to extended, far from it, but surely the rhetoric that there will be less bbls around come Nov and the subsequent reaction regarding flat price, how has that not made one bit of difference? Don't answer that. Stats later. Good day.

Fuel Oil Market (Jul 24)

The front crack opened at -7.80, strengthening to -7.65, before weakening to -7.75. The Cal 19 was valued at -15.00

Singapore 380 cSt ex-wharf premiums extended gains on Tuesday, soaring to multi-month highs amid shortages of finished grade bunker fuels.

Concerns of fuel oil shipments from the United States into Singapore contaminated with unusual amounts of phenol and styrene helped further tightened bunker fuel supplies and bolster ex-wharf premiums

However, no significant issues of contaminated bunker fuels were yet evident in the Singapore market, the sources said. Ex-wharf premiums for the 380 cSt fuel were at about $10- $12 per tonne to Singapore quotes this week, up from about $7-$9 a tonne in the previous week, sources said.

Economic data/events (Times are London.)

* 12pm: MBA Mortgage Applications, July 20

* 3pm: U.S. New Home Sales, June

* 3:30pm: EIA weekly oil inventory report

* Preliminary August loading program for Russian Urals crude

* Genscape weekly ARA crude stockpiles report

* See OIL WEEKLY AGENDA for this week's events

Singapore 380 cSt

Aug18 - 443.25 / 445.25

Sep18 - 435.50 / 437.50

Oct18 - 431.50 / 433.50

Nov18 - 428.00 / 430.00

Dec18 - 425.00 / 427.00

Jan19 - 421.75 / 423.75

Q4-18 - 428.25 / 430.25

Q1-19 - 418.50 / 420.50

Q2-19 - 409.00 / 411.50

Q3-19 - 388.00 / 390.50

CAL19 - 390.00 / 393.00

CAL20 - 319.00 / 325.00

Singapore 180 cSt

Aug18 - 451.00 / 453.00

Sep18 - 444.25 / 446.25

Oct18 - 441.00 / 443.00

Nov18 - 437.75 / 439.75

Dec18 - 435.25 / 437.25

Jan19 - 432.50 / 434.50

Q4-18 - 438.00 / 440.00

Q1-19 - 429.00 / 431.00

Q2-19 - 420.75 / 423.25

Q3-19 - 403.50 / 406.00

CAL19 - 404.25 / 407.25

CAL20 - 338.75 / 344.75

Rotterdam 3.5%

Aug18 - 421.00 / 423.00

Sep18 - 415.50 / 417.50

Oct18 - 411.25 / 413.25

Nov18 - 407.50 / 409.50

Dec18 - 404.00 / 406.00

Jan19 - 402.00 / 404.00

Q4-18 - 407.50 / 409.50

Q1-19 - 398.75 / 400.75

Q2-19 - 388.00 / 390.50

Q3-19 - 363.00 / 365.50

CAL19 - 367.25 / 370.25

CAL20 - 303.00 / 309.00