Image credit: Freight Investor Services (FIS)

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Commentary

Brent crude futures fell $2.83 to settle at $80.26 a barrel - a 3.41 percent loss - after hitting a low of $79.80, its weakest since Sept. 24, retreating after hitting a four-year high of $86.74 on Oct. 3. U.S. WTI crude futures fell $2.2 to settle at $70.97 a barrel - a 3.01 percent loss. WTI hit its lowest since Sept. 21. So the EIA data, IMF, and stock market all combined yesterday to nudge this market off a bit of a cliff, tumbling down to basically the $80 mark. The EIA data confirming that stock levels were four times as high as those predicted by analysts (although lower than the API); the IMF cutting its economic growth forecasts; and investors saying "see ya" to world stocks all caused an even more negative reaction than the phrase "and another thing!" in the midst of a 40-minute shouting match with your other half. On a separate note, U.S. oil production has increased its lighter crude percentage. Granted, this is of no massive surprise, due to the nature of their oil production techniques and location, but where it becomes significant is in 2020. U.S. black gold will become black platinum as demand for lighter sweeter crudes increases to deal with the IMO sulphur 0.5% cap. Some food for thought over the weekend. Good day.

Fuel Oil Market (Oct 11)

The front crack opened at -9.90, weakening to -10.15, before strengthening to -9.85. The Cal 19 was valued at -14.80.

Cash premiums for cargoes of Asia's mainstay 380 cSt highsulphur fuel oil slipped on Thursday for a fourth straight session to a three-week low.

The lower crude oil prices, however, failed to boost the frontmonth 380 cSt barge fuel oil crack, which was at minus $10.09 a barrel on Thursday, down from Wednesday's settlement of minus $10.02 a barrel, Refinitiv data showed.

Singapore fuel oil inventories climbed 6 percent, or 1.089 million barrels (about 163,000 tonnes), to 18.653 million barrels, or 2.784 million tonnes, data from International Enterprise (IE) Singapore showed.

Economic data/events (Times are UK)

* 6pm: Baker Hughes U.S. Rig Count, period Oct 12

* 8pm: Venezuela Crude Oil Basket CNY, period Oct 12

* IEA monthly oil market report, including world supply/demand and September production estimates for OPEC nations

* ICE weekly commitments of traders report for Brent, gasoil

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

Singapore 380 cSt

Nov18 - 480.75 / 482.75

Dec18 - 475.00 / 477.00

Jan19 - 469.25 / 471.25

Feb19 - 463.75 / 465.75

Mar19 - 458.75 / 460.75

Apr19 - 454.00 / 456.00

Q1-19 - 463.75 / 465.75

Q2-19 - 449.25 / 451.25

Q3-19 - 428.00 / 430.50

Q4-19 - 391.50 / 394.00

CAL19 - 431.25 / 434.25

CAL20 - 356.75 / 362.75

Singapore 180 cSt

Nov18 - 488.75 / 490.75

Dec18 - 484.00 / 486.00

Jan19 - 479.50 / 481.50

Feb19 - 473.75 / 475.75

Mar19 - 469.00 / 471.00

Apr19 - 464.50 / 466.50

Q1-19 - 474.00 / 476.00

Q2-19 - 460.25 / 462.25

Q3-19 - 442.00 / 444.50

Q4-19 - 412.75 / 415.25

CAL19 - 445.25 / 448.25

CAL20 - 379.25 / 385.25

Rotterdam 3.5%

Nov18 - 451.75 / 453.75

Dec18 - 446.50 / 448.50

Jan19 - 442.75 / 444.75

Feb19 - 439.00 / 441.00

Mar19 - 435.00 / 437.00

Apr19 - 430.50 / 432.50

Q1-19 - 438.75 / 440.75

Q2-19 - 427.00 / 429.00

Q3-19 - 405.25 / 407.75

Q4-19 - 367.25 / 369.75

CAL19 - 406.00 / 409.00

CAL20 - 337.25 / 343.25