Image credit: Freight Investor Services (FIS)

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Commentary

Oil prices were dragged lower by a plunge in global stock markets, with U.S. stocks posting the biggest daily decline since 2011 to wipe out the year's gains. "Global oil benchmarks have been hit hard since the start of Q4 2018 as market confidence fell (because of) weaker economic projections beyond 2018 and a massive sell-off in global equities," said commodity traders. Markets have been hit hard this month by a range of worries, including the Sino-U.S. trade war, a rout in emerging market currencies, rising borrowing costs and bond yields, as well as economic concerns in Italy.

In oil, WTI has fallen nearly 10% so far this month, while Brent is down nearly 9%. Still, oil markets remain nervous ahead of U.S. sanctions against Iran's crude exports, which kick in from Nov. 4. Bowing to pressure from Washington, China's oil-majors Sinopec and (CNPC) have not ordered any oil from Iran for November because of concerns that violating sanctions could impact their global operations China is Iran's biggest oil customer. Halting oil Iranian imports means its many refiners will have to seek alternative supplies elsewhere. Some relief could come from the United States, where crude production and storage levels are high.

Fuel Oil Market (Oct 24)

The front crack opened at -7.20, strengthening to -6.65, before weakening to -7.15, closing -7.10. The Cal 19 was valued at -13.15

Asia's November 180 cSt high sulphur fuel oil crack to Dubai crude flipped back to a premium on Wednesday for a second time this week supported by weaker crude prices that began to slide on Tuesday.

The front-month 180 cSt crack to Dubai crude jumped to a premium of 57 cents a barrel on Wednesday, its highest since June 2017 and up from a discount of 57 cents a barrel on Tuesday, Refinitiv data showed.

Fuel oil inventories at Fujairah climbed 6 percent higher, or 460,000 barrels (about 67,000 tonnes), to a nine-week high of 8.373 million barrels (1.25 million tonnes) in the weekended Oct. 22, data from S&P Global Platts showed.

Economic data/events (Times are UK)

* 9am: Singapore onshore oil-product stockpile data

* 1:30pm: U.S. Advance Goods Trade Balance, Sept.

* 1:30pm: U.S. Initial Jobless Claims, Oct. 20

* 2:45pm: Bloomberg Consumer Comfort, Oct. 21

* 3pm: U.S. Pending Home Sales, Sept.

* EARNINGS:

** ConocoPhillips, Valero, Equinor

* TODAY:

* Meeting of the IMO's Marine Environment Protection Committee, London. Key point will be the likely adoption, expected on Thursday or Friday, of a ban on the carriage of high-sulfur fuel, 1st day of 2

** Future Investment Initiative conference, Riyadh, final day

** International Energy Agency publishes World Energy Outlook chapter on Oil Producers' Economies, London

** Russian refining maintenance schedule from ministry

Singapore 380 cSt

Nov18 - 467.75 / 469.75

Dec18 - 460.75 /462.75

Jan19 - 454.00 / 456.00

Feb19 - 447.75 / 449.75

Mar19 - 442.50 / 444.50

Apr19 - 437.50 / 439.50

Q1-19 - 448.00 / 450.00

Q2-19 - 433.00 / 435.00

Q3-19 - 414.00 / 416.50

Q4-19 - 381.75 / 384.25

CAL19 - 419.75 / 422.75

CAL20 - 350.25 / 356.25

Singapore 180 cSt

Nov18 - 474.00 / 476.00

Dec18 - 468.50 / 470.50

Jan19 - 463.25 / 465.25

Feb19 - 457.25 / 459.25

Mar19 - 452.50 / 454.50

Apr19 - 448.00 / 450.00

Q1-19 - 457.50 / 459.50

Q2-19 - 443.50 / 445.50

Q3-19 - 427.50 / 430.00

Q4-19 - 401.00 / 403.50

CAL19 - 432.75 / 435.75

CAL20 - 372.25 / 378.25

Rotterdam 3.5%

Nov18 - 438.50 / 440.50

Dec18 - 431.00 / 433.00

Jan19 - 426.00 / 428.00

Feb19 - 421.50 / 423.50

Mar19 - 417.25 / 419.25

Apr19 - 413.25 / 415.25

Q1-19 - 421.75 / 423.75

Q2-19 - 408.50 / 410.50

Q3-19 - 388.25 / 390.75

Q4-19 - 353.75 / 356.25

CAL19 - 392.50 / 395.50

CAL20 - 330.50 /336.50