Image credit: Freight Investor Services (FIS)

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Commentary

Brent crude oil futures were at $62.21 per barrel at 02:18 GMT, up 54 cents, or 0.9 percent, from their last close, and U.S. WTI crude futures were at $52.63 per barrel, up 2 cents, held back as the booming U.S. oil industry is not taking part in the announced cuts. We saw prices surge Friday after OPEC and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000 bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group. It was bound to happen, was anyone in any real doubt that we were going to get a production cut? It's about as obvious as Forest Gump's computer password … 1forrest1. They've done some nice number moving from this producer to that one, some countries have dropped out, and they redistributed the lack of production in places like Venezuela. It all adds up to about as good a deal that OPEC could have hoped for. The market has reacted fairly positively, but will it last until Christmas? Probably, but then the hard times start, as they are really at the end of their tether to keep agreeing cuts - when the U.S. just produce more to limit any long term effects of that cut.

Fuel Oil Market (Dec 7)

The front crack opened at -6.70, before weakening to -6.95. The Cal 19 was valued at -11.20.

Asia's prompt-month 380 cSt HSFO time spread and cash premium fell as physical trade activity fizzled in the Singapore trading window following a week of intense buying appetite for cargoes of the fuel.

Rising fuel oil inventories in Singapore and the ARA refining and storage hubs this week also helped dampen market sentiment.

The 380 cSt fuel oil cash premium slipped to $5.65 a tonne to Singapore quotes, down from $5.95 a tonne in the previous session. Strong buying interest on Monday had boosted the premium to a two-week high of $8.97 a tonne to Singapore quotes

Economic Events:

* Today, no exact timing:

** UN climate change talks in Poland enter their final week

** BTC Azeri crude loading program for January

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

** CFTC weekly commitments of traders report on various U.S. futures, options with data as of Tuesday Dec. 4. (This report was delayed from Friday Dec. 7 due to an earlier national day of mourning)

Singapore 380 cSt

Jan19 - 379.75 / 381.75

Feb19 - 374.75 / 376.75

Mar19 - 370.75 / 372.75

Apr19 - 366.50 / 368.50

May19 - 361.75 / 363.75

Jun19 - 356.75 / 358.75

Q1-19 - 375.00 / 377.00

Q2-19 - 361.50 / 363.50

Q3-19 - 344.50 / 347.00

Q4-19 - 319.00 / 321.50

CAL19 - 351.00 / 354.00

CAL20 - 303.50 / 309.50

Singapore 180 cSt

Jan19 - 383.25 / 385.25

Feb19 - 379.75 / 381.75

Mar19 - 377.00 / 379.00

Apr19 - 373.25 / 375.25

May19 - 369.25 / 371.25

Jun19 - 364.75 / 366.75

Q1-19 - 380.00 / 382.00

Q2-19 - 369.00 / 371.00

Q3-19 - 354.25 / 356.75

Q4-19 - 334.50 / 337.00

CAL19 - 360.50 / 363.50

CAL20 - 323.25 / 329.25

Rotterdam 3.5%

Jan19 - 350.50 / 352.50

Feb19 - 347.25 / 349.25

Mar19 - 344.00 / 346.00

Apr19 - 340.75 / 342.75

May19 - 337.00 / 339.00

Jun19 - 333.25 / 335.25

Q1-19 - 347.25 / 349.25

Q2-19 - 336.25 / 338.25

Q3-19 - 319.50 / 322.00

Q4-19 - 292.00 / 294.50

CAL19 - 323.50 / 326.50

CAL20 - 279.00 / 285.00

0.1% Rott barges Gasoil

Jan19 - 556.84 / 558.84

Feb19 - 557.81 / 559.81

Mar19 - 558.42 / 560.42

Apr19 - 559.36 / 561.36

May19 - 560.87 / 562.87

Jun19 - 562.88 / 564.88

Q1-19 - 557.69 / 559.69

Q2-19 - 561.03 / 563.03

Q3-19 - 569.70 / 572.20

Q4-19 - 576.71 / 579.71

CAL19 - 565.85 / 569.85

CAL20 - 591.00 / 597.00

Sing GO 10ppm

Jan19 - 74.60 / 74.80

Feb19 - 75.15 / 75.35

Mar19 - 75.70 / 75.90

Apr19 - 76.07 / 76.27

May19 - 76.40 / 76.60

Jun19 - 76.51 / 76.71

Q1-19 - 75.05 / 75.45

Q2-19 - 76.27 / 76.67

Q3-19 - 77.28 / 77.58

Q4-19 - 77.98 / 78.38

CAL19 - 76.53 / 77.13

CAL20 - 78.73 / 79.33