Image credit: Freight Investor Services (FIS)

---

Commentary

Front-month Brent crude oil futures were trading down 39 cents, or 0.5 percent, at $77.23 a barrel at 06:16 GMT, and U.S. WTI crude futures were at $67.31 a barrel, down 28 cents, or 0.4 percent, from their last settlement. I'm sure if we were able to get some people from the 1930s to time travel to 2018, I'm sure they would have a serious case of deja vu with the current political developments that we are seeing around the world. Economic inequality, the world in a recovery from an economic collapse, right-wing protectionists coming to power across the globe, the vitriolic claims of those leaders. But what has this got to do with the oil market? Global trade growth relies on open borders and liberal trade markets, with isolationist politics becoming the new vogue, global oil demand could soon be up the creek without a paddle. The market vision has now shifted away from problems pushing the market higher to OPEC not increasing production to send it lower. This has shaped our drop below the $80 level and continues in the scrutiny of what could happen come the OPEC meeting next month. Good day.

Fuel Oil Market (Oct 26)

Cash premiums and refining margins of Asian fuel oil soared to fresh highs on Friday amid ongoing concerns of tight prompt supplies of finished grade fuel oil in the Singapore storage and trading hub. Strong buying interest for 380 cSt fuel oil cargoes in the Singapore trading window boosted premiums of the fuel to $8.51 a tonne to Singapore quotes, its widest premium since the so-called 'bull play' in June 2015 which saw trading volumes and premiums spike.

The Singapore 180-centistoke (cSt) fuel oil crack for November settled at $1.26 a barrel above Dubai crude oil on Friday, data on Refinitiv Eikon showed. The last time the front-month fuel oil crack was at a wider premium was in May 2003.

The crack closed at -5.70.

Economic Events: (Times are UK)

* 12:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* 12:30pm: U.S. Personal Income, Sept.

* 3:30pm: Dallas Fed Manufacturing Activity, Oct.

* Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday's EIA report

Singapore 380 cSt

Nov18 - 482.50 / 484.50

Dec18 - 473.50 / 475.50

Jan19 - 465.25 / 467.25

Feb19 - 458.25 / 460.25

Mar19 - 452.75 / 454.75

Apr19 - 447.50 / 449.50

Q1-19 - 458.75 / 460.75

Q2-19 - 442.50 / 444.50

Q3-19 - 421.75 / 424.25

Q4-19 - 387.75 / 390.25

CAL19 - 424.75 / 427.75

CAL20 - 355.25 / 361.25

Singapore 180 cSt

Nov18 - 489.00 / 491.00

Dec18 - 481.00 / 483.00

Jan19 - 474.00 / 476.00

Feb19 - 467.50 / 469.50

Mar19 - 462.50 / 464.50

Apr19 - 457.75 / 459.75

Q1-19 - 468.00 / 470.00

Q2-19 - 453.00 / 455.00

Q3-19 - 435.25 / 437.75

Q4-19 - 407.00 / 409.50

CAL19 - 437.75 / 440.75

CAL20 - 377.25 / 383.25

Rotterdam 3.5%

Nov18 - 451.00 / 453.00

Dec18 - 441.75 / 443.75

Jan19 - 435.25 / 437.25

Feb19 - 430.25 / 432.25

Mar19 - 425.75 / 427.75

Apr19 - 421.25 / 423.25

Q1-19 - 430.25 / 432.25

Q2-19 - 416.25 / 418.25

Q3-19 - 395.00 / 397.50

Q4-19 - 359.00 / 361.50

CAL19 - 397.50 / 400.50

CAL20 - 331.00 / 337.00

0.1% Rott barges Gasoil

Nov18 - 696.70 / 698.70

Dec18 - 688.75 / 690.75

Jan19 - 683.71 / 685.71

Feb19 - 682.10 / 684.10

Mar19 - 681.07 / 683.07

Apr19 - 680.43 / 682.43

Q1-19 - 682.29 / 684.29

Q2-19 - 680.24 / 682.24

Q3-19 - 683.34 / 685.84

Q4-19 - 683.61 / 686.61

CAL19 - 683.34 / 685.50

Sing GO 10ppm

Nov18 - 93.62 / 93.82

Dec18 - 92.71 / 92.91

Jan19 - 92.28 / 92.48

Feb19 - 92.04 / 92.24

Mar19 - 92.00 / 92.20

Apr19 - 91.97 / 92.17

Q1-19 - 92.11 / 92.31

Q2-19 - 91.99 / 92.19

Q3-19 - 92.17 / 92.37

Q4-19 - 92.38 / 92.58

CAL19 - 92.16 / 92.36