Image credit: Freight Investor Services (FIS)

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Commentary

Brent crude oil futures were at $60 per barrel at 0746 GMT, up 3 cents from their last close, and U.S. WTI crude futures were at $50.98 per barrel, down 2 cents. There's finally some good news. Chinese crude oil imports surged to an all-time high of 10.43 million bpd last month, up by 8.5 percent compared to November 2017 and beating the previous record of 9.61 million bpd, which was set just a month earlier and was driven by smaller independent refiners who were rushing to fulfil their 2018 oil import quotas before they expire. There was also the bullish news of another classic Libyan shutdown, which will take out some 73,000 bpd out of world oil production. However, as the European markets have opened, we have done nothing but fall. Maybe that says something about European cynicism and Eastern optimism, or perhaps I am reading too much into it. It seems that the production cut news is simply some tape tied around the stilts holding this oil house upon a sheer cliff over a stormy sea of overproduction and wavering world economy. Things could be worse, you could have woken up and realised that you're Theresa May, you have zero friends, and there's no light at the end of the tunnel. Although she must have a huge number of airmiles from her endless travelling to Europe that she can spend on some great walking holidays once she's been kicked out of No. 10. Silver lining, Prime Minister.

Fuel Oil Market (Dec 10)

The front crack opened at -6.75, before strengthening to - 6.60. The Cal 19 was valued at -11.00.

Asia's prompt-month time-spread for 380 cSt fuel oil extended their declines on Monday, weighed down by a steady growth in Singapore fuel oil inventories over recent weeks and pressure of firm selling ahead of the holiday season this month.

The Dec/Jan 380 cSt time-spread slipped to about $7.75 a tonne on Monday from about $8.25 a tonne on Friday, broker sources said.

Looking further ahead, however, the fuel oil market structure was firmer on Monday as expectations of tightening supplies following OPEC's announcement to curb production and amid mounting pressures on Iranian oil exports provided support.

Economic Events:

* U.S. EIA's Short-Term Energy Outlook, 5pm

* The API will issue its weekly U.S. oil inventory report today

Singapore 380 cSt

Jan19 - 366.75 / 368.75

Feb19 - 362.00 / 364.00

Mar19 - 358.25 / 360.25

Apr19 - 354.00 / 356.00

May19 - 349.50 / 351.50

Jun19 - 344.50 / 346.50

Q1-19 - 362.50 / 364.50

Q2-19 - 349.50 / 351.50

Q3-19 - 332.75 / 335.25

Q4-19 - 307.50 / 310.00

CAL19 - 339.75 / 342.75

CAL20 - 289.25 / 295.25

Singapore 180 cSt

Jan19 - 370.50 / 372.50

Feb19 - 366.75 / 368.75

Mar19 - 364.25 / 366.25

Apr19 - 360.25 / 362.25

May19 - 356.00 / 358.00

Jun19 - 351.75 / 353.75

Q1-19 - 367.25 / 369.25

Q2-19 - 356.25 / 358.25

Q3-19 - 341.75 / 344.25

Q4-19 - 322.50 / 325.00

CAL19 - 349.25 / 352.25

CAL20 - 309.00 / 315.00

Rotterdam 3.5%

Jan19 - 337.50 / 339.50

Feb19 - 334.75 / 336.75

Mar19 - 331.75 / 333.75

Apr19 - 328.50 / 330.50

May19 - 324.50 / 326.50

Jun19 - 320.25 / 322.25

Q1-19 - 334.75 / 336.75

Q2-19 - 324.50 / 326.50

Q3-19 - 307.75 / 310.25

Q4-19 - 280.00 / 282.50

CAL19 - 311.75 / 314.75

CAL20 - 264.25 / 270.25

0.1% Rott barges Gasoil

Jan19 - 543.25 / 545.25

Feb19 - 543.74 / 545.74

Mar19 - 544.50 / 546.50

Apr19 - 545.89 / 547.89

May19 - 547.45 / 549.45

Jun19 - 549.54 / 551.54

Q1-19 - 543.83 / 545.83

Q2-19 - 547.63 / 549.63

Q3-19 - 556.05 / 558.55

Q4-19 - 561.82 / 564.82

CAL19 - 551.89 / 555.89

CAL20 - 576.36 / 582.36

Sing GO 10ppm

Jan19 - 72.75 / 72.95

Feb19 - 73.37 / 73.57

Mar19 - 73.87 / 74.07

Apr19 - 74.17 / 74.37

May19 - 74.37 / 74.57

Jun19 - 74.48 / 74.68

Q1-19 - 73.23 / 73.63

Q2-19 - 74.11 / 74.51

Q3-19 - 75.02 / 75.32

Q4-19 - 75.52 / 75.92

CAL19 - 74.36 / 74.96

CAL20 - 75.90 / 76.50