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Commentary

Oil prices were slightly lower this morning, with Brent trading $73.14 at the time of writing. Traders, however, in the last session were placing new hedges in anticipation of a decline in U.S. crude inventories, but the market was held back from advancing by the prospect of rising global supplies. Overall U.S. crude oil inventories actually rose by 3.8 million barrels last week to 408.74 million barrels EIA, according to data from the EIA; however, stocks at the key Cushing storage hub in Oklahoma fell by 1.3 million barrels, the EIA data showed. "Hedges are thought to be a factor in oil prices being well bid," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore. "There's increasing chatter about... Cushing inventories (being) down... This primary U.S. oil hub's inventory now sits at the lowest levels since 2014," he said. If you ask me, its all a bit 'finger in the air' job, just like the BOE interest rates. Good weekend.

Fuel Oil Market (Aug 2)

Crack remained strong at thec lose at -8. Asia's 380 cSt prompt time spread was steady on Thursday, hovering near a three-year high hit earlier in the week, as near-term fundamentals remained supportive. This followed official data showing Singapore fuel oil stocks drop to a nineyear low this week. Bullish fundamentals propped up Asia's fuel oil market over the summer months as strong demand, particularly in the Middle East, and lower output contributed to low arbitrage volumes into the Singapore hub. However, some trade sources said they expected supplies into Singapore to gradually normalise from September onwards as utility demand subsides after the scorching summer.

Economic data/events (Times are London.)

* 1:30pm: U.S. Trade balance for June, est. -$46.5b (prior -$43.1b)

* 1:30pm: U.S. Change in Non-Farm Payrolls for July, est. 193k (prior 213k)

* 1:30pm: U.S. Unemployment Rate for July, est. 3.9% (prior4.0%)

* 6pm: Baker Hughes rig count

* ~6:30m: ICE weekly commitments of traders report for Brent and gasoil

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

* U.S. Census Bureau report

* See OIL WEEKLY AGENDA for this week's events

Singapore 380 cSt

Sep18 - 436.25 / 438.25

Oct18 - 430.50 / 432.50

Nov18 - 426.50 / 428.50

Dec18 - 423.25 / 425.25

Jan19 - 419.75 / 421.75

Feb19 - 416.50 / 418.50

Q4-18 - 426.75 / 428.75

Q1-19 - 417.00 / 419.00

Q2-19 - 407.50 / 410.00

Q3-19 - 387.75 / 390.25

CAL19 - 388.75 / 391.75

CAL20 - 318.25 / 324.25

CAL20 - 317.25 / 323.25

Singapore 180 cSt

Sep18 - 444.75 / 446.75

Oct18 - 440.25 / 442.25

Nov18 - 436.75 / 438.75

Dec18 - 433.75 / 435.75

Jan19 - 429.75 / 431.75

Feb19 - 427.25 / 429.25

Q4-18 - 437.00 / 439.00

Q1-19 - 428.00 / 430.00

Q2-19 - 419.75 / 422.25

Q3-19 - 403.75 / 406.25

CAL19 - 403.75 / 406.75

CAL20 - 338.25 / 344.25

Rotterdam 3.5%

Sep18 - 414.00 / 416.00

Oct18 - 409.25 / 411.25

Nov18 - 405.50 / 407.50

Dec18 - 402.25 / 404.25

Jan19 - 400.00 / 402.00

Feb19 - 397.25 / 399.25

Q4-18 - 405.75 / 407.75

Q1-19 - 397.00 / 399.00

Q2-19 - 387.50 / 390.00

Q3-19 - 364.50 / 367.00

CAL19 - 366.75 / 369.75

CAL20 - 300.25 / 306.25