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Commentary

Brent closed up $0.19 last night to $67.50. WTI closed at $63.91, up $0.36. Well, the UK is set to become a net exporter of crude oil for the first time in two decades. Go on Team North Sea GB! If the US can take some market share from OPEC, then why can't the UK? Anyway, the reason for mentioning this news item is that the IEA have finally agreed with something that I said about four months ago - and that is that the USA will be the biggest oil producer within the next five years. Now I and everyone else didn't think the US would ramp up production as quick as they have, but other countries are certainly plagiarising this model. And if Ivanka Trump can (allegedly) plagiarise something, then why can't the North Sea oil industry, eh Donald? API data later; good luck you bulls.

Fuel Oil Market (February 26)

The front crack opened at -11.30, weakening to -11.55, before strengthening to -11.15, closing -11.55. The Cal 19 was valued at -15.50.

Ex-wharf premiums of Singapore 380 cSt high-sulphur fuel oil have remained under pressure in February amid seasonally sluggish demand for bunker fuels and competitive offers as some suppliers sought to clear their stocks to make room for incoming cargoes, industry sources said.

The 380 cSt fuel oil ex-wharf premiums traded mostly at about 75 cents to $2 a tonne to Singapore quotes in February so far, trade sources said. This compared to premiums of about $1-$3 a tonne in January, sources added.

Meanwhile, the absence of buying interest weighed on the March 380-cst fuel oil crack, widening their discount to Brent crude to about minus $11.30 a barrel, down from Minus $11 a barrel in the previous session, broker sources said.

Economic Data and Events

* 9:30pm: API issues weekly U.S. oil inventory report

* Jan Stuart of Cornerstone Macro, RBN Energy President Rusty Braziel and other analysts speak at CSIS conference on tight-oil outlook, Washington

* Bloomberg-compiled Refinery Snapshot for U.S. and Canada; gives offline capacity projections for crude units and FCCs

Singapore 380 cSt

Mar18 - 365.50 / 367.50

Apr18 - 365.25 / 367.25

May18 - 364.75 / 366.75

Jun18 - 364.00 / 366.00

Jul18 - 363.00 / 365.00

Aug18 - 361.75 / 363.75

Q2-18 - 364.75 / 366.75

Q3-18 - 361.75 / 363.75

Q4-18 - 356.00 / 358.50

Q1-19 - 347.75 / 350.25

CAL19 - 316.50 / 320.50

CAL20 - 237.50 / 245.50

Singapore 180 cSt

Mar18 - 372.75 / 374.75

Apr18 - 372.25 / 374.25

May18 - 371.75 / 373.75

Jun18 - 371.00 / 373.00

Jul18 - 370.00 / 372.00

Aug18 - 368.75 / 370.75

Q2-18 - 371.75 / 373.75

Q3-18 - 368.75 / 370.75

Q4-18 - 363.00 / 365.50

Q1-19 - 355.50 / 358.00

CAL19 - 325.75 / 329.75

CAL20 - 253.25 / 261.25

Rotterdam Barges

Mar18 353.00 / 355.00

Apr18 353.25 / 355.25

May18 352.50 / 354.50

Jun18 351.50 / 353.50

Jul18 350.00 / 352.00

Aug18 348.00 / 350.00

Q2-18 352.25 / 354.25

Q3-18 347.75 / 349.75

Q4-18 338.50 / 341.00

Q1-19 330.25 / 332.75

CAL19 293.75 / 297.75

CAL20 223.75 / 231.75