Image credit: Freight Investor Services (FIS)

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Commentary

International Brent crude oil futures were down 28 cents, or 0.4 percent, at $72.89 a barrel, U.S. WTI crude futures were at $62.95 a barrel at 03:55 GMT, down 15 cents, or 0.2 percent, from their last settlement. The market was quieter than a morgue this morning, as Singapore took a well-earned break from the toil of the year. $72 is the new $82, as the changing fashions of the year, we have fallen from a high level to perch just above $70/bbl. The world is focusing its attention today on the U.S. as the midterm voting commences, its also the focus for the oil markets with Iran sanctions, exemptions, pressure on the Saudis, and shale oil production. A stronger dollar is also adding to the list of bearish factors that have dragged this market down. It seems now that expectations of an economic slowdown in the coming months were weighing on the fuel demand outlook, while concerns eased on the supply side after Washington granted sanction waivers to eight importers of Iranian oil that will allow them to continue purchases. With U.S. production up, Saudi sales up, sanctions exemptions on, Russian production up, world economy flailing, it's no wonder we are where we are. Good day.

Fuel Oil Market (Nov 5)

The front crack opened at -6.15, strengthening to -5.90, before weakening to -6.25, closing -6.10. The Cal 19 was valued at -12.25.

Asia's 380 cSt fuel oil crack hit a 15-month high on Monday as the market grappled with the persisting crunch from reduced Venezuelan and Iranian exports while demand is strong.

The crack was at a discount of about $5.63 a barrel, its narrowest discount since July 2017.

Supplies across key regions were down, with data from Fujairah, Singapore and Europe showing reduced fuel oil inventories. Singapore's fuel oil stocks are down 38.5 percent from a year ago while Fujairah's levels were down 25.1 percent.

Fuel oil stocks held in ARA refining and storage hub were also down 29.2 percent year on year.

Economic Events: (Times are UK)

* 3pm: Taiwan CPI YoY for Oct, est. 1.65% (prior 1.72%)

* Singapore public holiday

* Earnings: Rosneft PJSC, Petrobras, Devon Energy Corp., Pioneer Natural Resources, Plains All American Pipeline LP

Singapore 380 cSt

Dec18 - 461.75 / 463.75

Jan19 - 451.75 / 453.75

Feb19 - 443.75 / 445.75

Mar19 - 437.75 / 439.75

Apr19 - 432.00 / 434.00

May19 - 426.25 / 428.25

Q1-19 - 444.50 / 446.50

Q2-19 - 426.25 / 428.25

Q3-19 - 403.75 / 406.25

Q4-19 - 370.00 / 372.50

CAL19 - 411.25 / 414.25

CAL20 - 340.00 / 346.00

Singapore 180 cSt

Dec18 - 467.75 / 469.75

Jan19 - 459.50 / 461.50

Feb19 - 452.25 / 454.25

Mar19 - 447.00 / 449.00

Apr19 - 441.75 / 443.75

May19 - 436.50 / 438.50

Q1-19 - 453.00 / 455.00

Q2-19 - 436.50 / 438.50

Q3-19 - 416.25 / 418.75

Q4-19 - 388.75 / 391.25

CAL19 - 423.25 / 426.25

CAL20 - 361.75 / 367.75

Rotterdam 3.5%

Dec18 - 423.25 / 425.25

Jan19 - 416.75 / 418.75

Feb19 - 411.25 / 413.25

Mar19 - 406.25 / 408.25

Apr19 - 401.75 / 403.75

May19 - 396.75 / 398.75

Q1-19 - 411.50 / 413.50

Q2-19 - 396.75 / 398.75

Q3-19 - 374.75 / 377.25

Q4-19 - 340.00 / 342.50

CAL19 - 380.25 / 383.25

CAL20 - 317.75 / 323.75

0.1% Rott barges Gasoil

Dec18 - 652.12 / 654.12

Jan19 - 653.60 / 655.60

Feb19 - 652.43 / 654.43

Mar19 - 650.98 / 652.98

Apr19 - 650.18 / 652.18

May19 - 650.17 / 652.17

Q1-19 - 651.20 / 653.20

Q2-19 - 650.28 / 652.28

Q3-19 - 656.01 / 658.51

Q4-19 - 658.20 / 661.20

CAL19 - 656.01 / 657.11

CAL20 - 658.20 / 648.71

Sing GO 10ppm

Dec18 - 88.52 / 88.72

Jan19 - 88.33 / 88.53

Feb19 - 88.15 / 88.35

Mar19 - 88.06 / 88.26

Apr19 - 88.00 / 88.20

May19 - 87.94 / 88.14

Q1-19 - 87.97 / 88.37

Q2-19 - 87.92 / 88.32

Q3-19 - 88.25 / 88.55

Q4-19 - 88.47 / 88.87

CAL19 - 88.04 / 88.64

CAL20 - 87.15 / 88.15