Image credit: Freight Investor Services (FIS)

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Commentary

Brent crude futures were up 10 cents, or 0.1 percent, at $81.87 a barrel by 06:45 GMT, after gaining nearly 1 percent the previous session. Brent rose on Tuesday to its highest since November 2014 at $82.55 per barrel, and U.S. WTI futures were down 4 cents at $72.24 a barrel. They climbed 0.3 percent on Tuesday to close at their highest level since July 11. Which news is bigger than the other news? This morning, the factors that have been pushing this market up to new highs are far outweighing any other news. The API last night reported a 2.9 mil bbl rise in U.S. stocks with an even balance of product builds and draws, but this doesn't seem to have impacted the market much - apart from perhaps capping the market just above the $82 level. I can just imagine all those heads of OPEC wringing their hands at the current situation... "Ha ha ha, Donald will love it when we do nothing," they will think. I think they should have a new OPEC slogan: 'Keep Calm and Carry on Pumping the Same'; it seems that they don't have to do anything but continue as they are, with the problems in Venezuela, sanctions, and U.S. infrastructure constraints. If this moment were to be turned into a terrible 1960s UK comedy, it would be named 'Carry On Pumping'. I will spare our audience from the many innuendos that could be used as not to slip up and leave myself in a sticky situation with compliance, but with prices up at these levels you've got to just laugh. Good day.

Fuel Oil Market (Sep 25)

The front crack opened at -11.35, weakening to -11.40, before strengthening to -11.30. The Cal 19 was valued at - 15.65.

Asia's fuel oil market extended gains on Tuesday as expectations of tighter arbitrage flows into Asia continued to fuel bullish sentiment over the near term, trade sources said.

The Oct/Nov time spread for 380 cSt fuel oil widened its backwardation to $5.75 a tonne on Tuesday, up from $4.75 a tonne in the previous session and its highest since Aug. 24.

Similarly, 380 cSt cash premiums rose for a second session straight to $6.20 a tonne to Singapore quotes, up from $5.90 on Monday and its highest since Aug. 10.

Economic data/events (Times are London.)

* 12pm: MBA Mortgage Applications, Sept. 21

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

* 3:30pm: EIA weekly U.S. oil inventory report; TopLive blog starts 3:20pm

* 7pm: Fed Rate Decision

* Rio Oil & Gas conference, 3rd day of 4

* Platts APPEC Conference, final day

* Angolan final loading program for November

* Genscape weekly ARA crude stockpiles report

* Mexico Oil Congress 2018 in Acapulco, 1st day of 3

Singapore 380 cSt

Oct18 - 469.50 / 471.50

Nov18 - 463.75 / 465.75

Dec18 - 459.00 / 461.00

Jan19 - 454.25 / 456.25

Feb19 - 449.75 / 451.75

Mar19 - 445.50 / 447.50

Q4-18 - 464.25 / 466.25

Q1-19 - 450.25 / 452.25

Q2-19 - 437.00 / 439.50

Q3-19 - 418.50 / 421.00

CAL19 - 419.25 / 422.25

CAL20 - 344.25 / 350.25

Singapore 180 cSt

Oct18 - 476.75 / 478.75

Nov18 - 471.75 / 473.75

Dec18 - 467.75 / 469.75

Jan19 - 464.25 / 466.25

Feb19 - 460.00 / 462.00

Mar19 - 456.00 / 458.00

Q4-18 - 472.25 / 474.25

Q1-19 - 460.75 / 462.75

Q2-19 - 448.50 / 451.00

Q3-19 - 434.50 / 437.00

CAL19 - 433.75 / 436.75

CAL20 - 367.25 / 373.25

Rotterdam 3.5%

Oct18 - 444.00 / 446.00

Nov18 - 439.75 / 441.75

Dec18 - 435.50 / 437.50

Jan19 - 432.25 / 434.25

Feb19 - 429.25 / 431.25

Mar19 - 426.25 / 428.25

Q4-18 - 439.75 / 441.75

Q1-19 - 429.25 / 431.25

Q2-19 - 417.25 / 419.75

Q3-19 - 394.50 / 397.00

CAL19 - 397.00 / 400.00

CAL20 - 327.25 / 333.25