---

Commentary

Brent crude futures were at $62.06 per barrel at 07:42 GMT, up $19 cents, or 0.3 percent, from their last close and U.S. WTI was at $55.39 a barrel, $6 cents up from their last settlement. Oil markets edged up this morning, and when I say edge, I mean put your glasses on to make sure you can actually see it on the crude graphs. The news reports keep going on about 'unexpected' rise in oil inventories. Well, if you take the API numbers then, number one, nothing should be a surprise. Number two, they predicted an even bigger build in crude stocks... so let's all just pipe down a bit. The market is currently as flat at as the atmosphere after announcing that the special guest at the Christmas office party will be Kevin Spacey. I am trying to keep in the excitement for the OPEC meeting at the end of the month, you know like on excitement before your 30th or 40th birthday - the inevitable move towards it, you know what's going to happen, you have to keep smiling, but really you're not that overjoyed and you'd rather it passed very quietly and no one mentioned it, keeping hold of 29 for another 4 years. Will it fundamentally make much difference extending the cut? Nope, not really. Will it be a huge blessing for those trying to cut inventories? Nope, probably not. But, most importantly, it will be the psychological impact that will reinvigorate the bulls of the market. Just like the psychological move from 29 to 30, or 39 to 40, each ache suddenly hurts more, each morsel of you becomes a little more cynical, but actually you're the same as the day before.

Fuel Oil Market (November 15)

The front crack opened at -7.95, strengthening to -7.90, before weakening to -8.00. The Cal 18 was valued at -7.95.

Despite the slide in crude oil prices, the front-month fuel oil crack edged lower on Wednesday, likely as a result of selling pressure from refinery hedging.

Premiums of the front-month time spread for the mainstay 380 cSt fuel oil were also slightly narrower as trade activity remained lacklustre.

Fujairah fuel oil inventories fell 3.7%, or 321,000 barrels (about 48,000 tonnes), from a week ago to 3.320 million barrels (1.24 million tonnes) in the week ended Nov. 13.

Total fuel oil flows into East Asia for November are poised to close at nine-month high of around 7 million tonnes, boosted by recovering Western arrivals, near record-high inflows from the Middle East and 11-month high intra Asia volumes.

Economic Data/Events: (UK times)

* 8am: Singapore onshore oil-product stockpile data

* ~noon: Russian refining maintenance schedule from ministry

* U.S.: ** 1:30pm: initial jobless claims for Nov. 11, est. 235k (prior 239k)

** 1:30pm: Oct. import price index m/m, est. 0.4% (prior 0.7%)

** 1:30pm: Oct. export price index m/m, est. 0.4% (prior 0.8%)

** 2:15pm: Oct. industrial production m/m, est. 0.5% (prior 0.3%)

** 2:45pm: Bloomberg consumer comfort, Nov. 12, prior 51.5

** 3pm: NAHB housing market index, est. 67 (prior 68)

Singapore 380 cSt

Dec17 - 361.00 / 363.00

Jan18 - 359.50 / 361.50

Feb18 - 358.00 / 360.00

Mar18 - 356.50 / 358.50

Apr18 - 355.00 / 357.00

May18 - 353.50 / 355.50

Q1-18 - 358.00 / 360.00

Q2-18 - 354.00 / 356.00

Q3-18 - 348.50 / 351.00

Q4-18 - 343.25 / 345.75

CAL18 - 350.50 / 353.50

CAL19 - 316.00 / 321.00

Singapore 180 cSt

Dec17 - 365.25 / 367.25

Jan18 - 364.25 / 366.25

Feb18 - 363.25 / 365.25

Mar18 - 362.25 / 364.25

Apr18 - 361.00 / 363.00

May18 - 360.25 / 362.25

Q1-18 - 363.25 / 365.25

Q2-18 - 360.00 / 362.00

Q3-18 - 355.00 / 357.50

Q4-18 - 350.25 / 352.75

CAL18 - 356.75 / 359.75

CAL19 - 324.75 / 329.75

Rotterdam 380 cSt

Dec17 342.00 / 344.00

Jan18 341.00 / 343.00

Feb18 340.25 / 342.25

Mar18 339.50 / 341.50

Apr18 338.75 / 340.75

May18 337.75 / 339.75

Q1-18 340.25 / 342.25

Q2-18 338.00 / 340.00

Q3-18 333.00 / 335.50

Q4-18 324.75 / 327.25

CAL18 333.25 / 336.25

CAL19 294.75 / 299.75