By the Oil Desk at Freight Investor Services Ltd.
Brent closed up 0.80 last night to $47.63 and WTi was unchanged owing to Labor day holidays. So, Russia and Saudi have agreed something. However, I'm still not sure what they agreed, are you? It can't possibly be discussing a freeze in production. Especially when they are both pumping record numbers, it can't be that. That would be stupid. Did they agree to cut production? Doesn't seem like it and I am 99.99% that will never happen. Did they agree to set a limit on how happy they are for prices to go down? Nope. So what did they agree? It seems nothing apart from "OK, see you next month, bye". SO WHY DID WE RALLY!! I have no idea to be honest. If a production freeze is agreed then demand will need to pick up to cause the market to rebalance. Is demand increasing? Doesn't seem like it. It's all a bit dramatic really. Good day.
Economic data/Events:
* 10am: German gasoil inventory data from Ipsos
* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports
(delayed by one day due to U.S. Labor Day)
* 3pm: U.S. Aug. labor market conditions index (prior 1.0)
* 3pm: U.S. Aug. ISM non-manufacturing composite, est. 55 (prior 55.5)
* 3pm: U.S. Sept. IBD/TIPP economic optimism, est. 48.1 (prior 48.4)
* Today: Bloomberg-compiled U.S. refinery snapshot with offline capacity projections for CDUs, FCCs
* Today: Bloomberg proprietary fcast of Cushing crude inventory change (delayed by one day due to U.S. Labor Day)
* Today: Asia Pacific Petroleum Conference, Singapore, with participation of BP, Statoil, Shell and Trafigura executives, 1st day of 3
* Today: SPE Intelligent Energy International Conference, Aberdeen, with participation of BP, Shell, ConocoPhillips execs that discuss the latest technologies for oilfield development, 1st day of 3
* Today: Barclays CEO Energy-Power Conference, New York, with participation of Halliburton CEO Jeff Miller, Marathon Petroleum Corp. CEO Gary Heminger, among others, 1st day of 3
Singapore 380 cSt
Oct-16 - 247.5 / 249.5
Nov-16 - 246.25 / 248.25
Dec16 - 245.5 / 247.5
Jan17 - 245.25 / 247.25
Feb-17 - 245.75 / 247.75
Mar-17 - 246.5 / 248.5
Q4-16 - 245.25 / 248.25
Q1-17 - 244.75 / 247.75
Q2-17 - 246.25 / 250.25
Q3-17 - 248.75 / 252.75
CAL17 - 247.75 / 251.75
CAL18 - 260.5 / 266.5
CAL19 - 276.5 / 284.5
CAL20 - 292.5
Singapore 180 cSt
Oct-16 - 253.25 / 255.25
Nov-16 - 252 / 254
Dec16 - 252 / 254
Jan17 - 251.75 / 253.75
Feb-17 - 252.5 / 254.5
Mar-17 - 253.25 / 255.25
Q4-16 - 251.5 / 254.5
Q1-17 - 251.5 / 254.5
Q2-17 - 253.25 / 257.25
Q3-17 - 256 / 260
CAL17 - 255.25 / 259.25
CAL18 - 269.75 / 275.75
CAL19 - 285.75 / 293.75
CAL20 - 301.75 / 309.75
Rotterdam 3.5%
Oct-16 232.75 / 234.75
Nov-16 230.25 / 232.25
Dec16 229 / 231
Jan17 231 / 233
Feb-17 232 / 234
Mar-17 233 / 235
Q4-16 230.25 / 233.25
Q1-17 232.75 / 235.75
Q2-17 235.5 / 239.5
Q3-17 238.5 / 242.5
CAL17 234.5 / 238.5
CAL18 248.25 / 254.25
CAL19 261 / 269
CAL20 274.5 / 282.5
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