Image credit: Freight Investor Services (FIS)

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Commentary

Brent crude oil futures were at $72.80 per barrel at 01:09 GMT, up 18 cents, or 0.25 percent, from their last close and U.S. WTI crude futures were up 26 cents, or 0.39 percent, at $66.10 per barrel. The news of the morning is the API data, the age old predictor of this afternoon's fun. Most people you speak to assign less trust in these figures than they would in dowsing rods used by some crazy guy who thinks aliens created the pyramids who's trying to find water in the desert on a discovery channel programme. But alas, the market has taken the 5 millon bbl draw in crude stocks into account this morning as we slowly move up into prices on the Oct Brent above the $73 level. There's always a little bit in news stories these days about the 'concern over supply' hidden away in a throwaway paragraph towards to end of the report. I like to think of this as some poor guy kneeling down next to a refinery, arms splayed by his side shouting "WHERE'S THE OIL GONE?!" I don't think there's any reality of this actually happening, but I like the thought of this being the source of the news stories. With a Singapore holiday today, the most exciting things happening will be the EIA data at 3.30pm, so keep your eyes peeled for that. Good day.

Fuel Oil Market (Aug 21)

The front crack opened at -9.15, weakening to -9.25, before strengthening to -9.20, closing -9.35. The Cal 19 was valued at-14.50.

Asia's fuel oil market was steady on Tuesday but expectations of higher arbitrage supplies into Singapore over the near term continued to weigh on sentiment, helping drag the front-month fuel oil crack to a more than one-month low

Demand for high sulphur marine fuels is likely to see a smaller drop than previously expected by 2020, as changing attitudes to sulphur-stripping technologies from large shippers alter the outlook for use of the fuels.

More than 2,100 vessels are now expected to be equipped with exhaust gas cleaning systems, known as scrubbers, by 2020, up from 1,500 ships previously.

If scrubber adoption continues at current rates over the next 18 months high-sulphur fuel oil consumption in 2020 can be lifted significantly to above 800,000 barrels per day.

Economic data/events (Times are London.)

* 12pm: U.S. MBA mortgage applications for Aug. 17

* 3pm: U.S. existing home sales for July

* 3:30pm: EIA weekly U.S. oil inventory report; TopLive blog starts 3:20pm

* Today:

** Genscape weekly ARA crude stockpiles report

Singapore 380 cSt

Sep18 - 426.25 / 428.25

Oct18 - 420.75 / 422.75

Nov18 - 417.25 / 419.25

Dec18 - 414.25 / 416.25

Jan19 - 411.25 / 413.25

Feb19 - 408.00 / 410.00

Q4-18 - 417.50 / 419.50

Q1-19 - 408.25 / 410.25

Q2-19 - 399.00 / 401.50

Q3-19 - 384.00 / 386.50

CAL19 - 385.50 / 388.50

CAL20 - 320.25 / 326.25

Singapore 180 cSt

Sep18 - 434.75 / 436.75

Oct18 - 430.00 / 432.00

Nov18 - 427.50 / 429.50

Dec18 - 424.75 / 426.75

Jan19 - 421.50 / 423.50

Feb19 - 418.50 / 420.50

Q4-18 - 427.50 / 429.50

Q1-19 - 419.00 / 421.00

Q2-19 - 411.50 / 414.00

Q3-19 - 399.00 / 401.50

CAL19 - 400.25 / 403.25

CAL20 - 343.25 / 349.25

Rotterdam 3.5%

Sep18 - 405.00 / 407.00

Oct18 - 399.75 / 401.75

Nov18 - 395.75 / 397.75

Dec18 - 392.25 / 394.25

Jan19 - 390.25 / 392.25

Feb19 - 387.75 / 389.75

Q4-18 - 396.00 / 398.00

Q1-19 - 388.00 / 390.00

Q2-19 - 379.25 / 381.75

Q3-19 - 360.25 / 362.75

CAL19 - 362.25 / 365.25

CAL20 - 304.75 / 310.75