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By the Oil Desk at Freight Investor Services Ltd.

Brent closed up 0.55 last night to $49.24 and WTI closed up 0.78 to $47.83. Well some would say this has been an emotional week in the oil markets. But in actual fact we are only up 3.3% on the week. Nov Brent expires today, so we have to take into account the 50c contango roll, but you can hardly say 'job done' ex Algiers. I said yesterday that the deal was ambiguous to say the least, not least because we don't know what 'the deal' is. One thing for sure is that the US market is going to take this apparent deal and buy the granny out of the market, and why wouldn't they? They have been thrown a lifeline and will make hay whilst that weak Autumnal sun is out. Expect maintenance season to get deferred for as long as possible as distillate demand is now on a par with last year, but it's that poor old Sage Gasoline that seems to be getting hammered. I think it's a very bad sign when gasoline demand is down in the US, we all know that they love to guzzle gasoline like a thirsty freshman on Spring break. EU demand for products is in fact going down, so fear not, the bear in me is still alive, I'm just not sure for how much longer.

Economic data/events

* 7am: Germany Aug. retail sales m/m, est. -0.2% (prior 1.7%); Germany Aug. retail sales y/y, est. 1.8% (prior -1.5%)
* 9:30am: U.K. GDP q/q for 2Q F, est. 0.6% (prior 0.6%); U.K. GDP y/y for 2Q F, est. 2.2% (prior 2.2%)
* 1:30pm: U.S. Aug. personal income, est. 0.2% (prior 0.4%); U.S. Aug. personal spending, est. 0.1% (prior 0.3%)
* 6pm: Baker Hughes weekly U.S. oil rig count, prior 418
* 8:30pm: CFTC weekly commitment of traders report on U.S. futures, options contracts
* EIA releases monthly crude oil production report
* EIA releases petroleum supply monthly report, including crude-by-rail data
* Sakhalin Oil & Gas Conference, Sakhalin Island
* Platts European Refining Summit, Brussels

Singapore 380 cSt

Oct16 - 255.00 / 257.00
Nov16 - 255.00 / 257.00
Dec16 - 255.25 / 257.25
Jan17 - 255.25 / 257.25
Feb17 - 255.75 / 257.75
Mar17 - 256.25 / 258.25
Q4-16 - 254.50 / 257.50
Q1-17 - 254.25 / 257.25
Q2-17 - 255.25 / 259.25
Q3-17 - 257.50 / 261.50
CAL17 - 259.25 / 263.25
CAL18 - 270.75 / 276.75
CAL19 - 284.25 / 292.25
CAL20 - 296.75 / 304.75

Singapore 180 cSt

Oct16 - 261.50 / 263.50
Nov16 - 260.75 / 262.75
Dec16 - 261.25 / 263.25
Jan17 - 261.00 / 263.00
Feb17 - 261.75 / 263.75
Mar17 - 262.50 / 264.50
Q4-16 - 260.50 / 263.50
Q1-17 - 260.50 / 263.50
Q2-17 - 262.25 / 266.25
Q3-17 - 264.50 / 268.50
CAL17 - 266.00 / 270.00
CAL18 - 279.25 / 285.25
CAL19 - 293.25 / 301.25
CAL20 - 305.75 / 313.75

Rotterdam 3.5%

Oct16 240.25 / 242.25
Nov16 239.00 / 241.00
Dec16 238.25 / 240.25
Jan17 240.50 / 242.50
Feb17 241.75 / 243.75
Mar17 242.75 / 244.75
Q4-16 238.50 / 241.50
Q1-17 240.00 / 243.00
Q2-17 242.50 / 246.50
Q3-17 245.00 / 249.00
CAL17 244.75 / 248.75
CAL18 256.00 / 262.00
CAL19 268.75 / 276.75
CAL20 278.75 / 286.75

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Founded in 2002, Freight Investor Services is a specialist in dry bulk and commodity derivatives, including cargo freight, iron ore, fertilizer and bunker fuel. The company has offices in London, Dubai, Singapore and Shanghai.

For further details about fuel oil swaps or to discuss trading opportunities, please contact Andrew Cullen, Client Relations & Development Manager, on +44 207 090 1126, or email AndrewC@freightinvestor.com.