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By the Oil Desk at Freight Investor Services Ltd.

Brent closed last night at $50.89 up 0.70 and WTI closed up 0.57 to $48.81. You know, I have to take my hat off to OPEC. I have said this before, but they really have established themselves as the most efficient industry group in history. Doha aside, every time there has been a meeting, the market has done exactly what they wanted it to i.e. bounced and taken any sniff of bullish sentiment with open arms and embraced it like a hungover person does with a Full English breakfast. Look at the news that has come in the last couple of days, OPEC production at record highs with Iraq and Iran producing high numbers, Nigeria, Libya and Venezuela should apparently have some kind of exclusion whilst they sort political issues out and Russia saying they are going to produce more in 2017. Shouldn't this be a sell signal seeing as WE ARE STILL oversupplied? Not on your nelly. Perhaps it is too early to call this, but it seems $50 could be the new floor. Up here, people who were previously struggling financially can hedge and lock in another 2 years of hopeful positive cash flow. Where is the next ceiling? I don't know, $52.50 maybe?

U.S. Inventories:

* U.S. crude inventories seen rising 1.75m bbl in Bloomberg survey
* Cushing crude stocks rose 100k bbl last week: Bloomberg forecast

Economic data/events

* 10am: Eurozone Aug. PPI m/m, est. -0.1% (prior 0.1%); Eurozone Aug. PPI y/y, est. -2.1% (prior -2.8%)
* 12:30pm: Bloomberg-compiled U.S. refinery snapshot with offline capacity projections for CDUs, FCCs
* 2:45pm: ISM New York, Sept., prior 47.5
* 9:30pm: API issues weekly U.S. oil inventory report
* Today: Richmond Fed President Jeffrey Lacker will speak at West Virginia Economic Outlook Conference, Charleston, West Virginia
* China public holidays, lasting through Friday

Singapore 380 cSt

Nov16 - 261.75 / 263.75
Dec16 - 261.75 / 263.75
Jan17 - 261.75 / 263.75
Feb17 - 262.25 / 264.25
Mar17 - 262.75 / 264.75
Apr17 - 263.50 / 265.50
Q1-17 - 261.50 / 264.50
Q2-17 - 263.50 / 266.50
Q3-17 - 265.75 / 269.75
Q4-17 - 268.75 / 272.75
CAL17 - 267.50 / 271.50
CAL18 - 279.00 / 285.00
CAL19 - 292.50 / 300.50
CAL20 - 305.00 / 313.00

Singapore 180 cSt

Nov16 - 267.50 / 269.50
Dec16 - 267.75 / 269.75
Jan17 - 267.75 / 269.75
Feb17 - 268.25 / 270.25
Mar17 - 269.00 / 271.00
Apr17 - 269.50 / 271.50
Q1-17 - 267.25 / 270.25
Q2-17 - 269.75 / 272.75
Q3-17 - 272.00 / 276.00
Q4-17 - 275.50 / 279.50
CAL17 - 274.25 / 278.25
CAL18 - 287.50 / 293.50
CAL19 - 301.50 / 309.50
CAL20 - 314.00 / 322.00

Rotterdam 3.5%

Nov16 245.25 / 247.25
Dec16 244.75 / 246.75
Jan17 247.25 / 249.25
Feb17 248.50 / 250.50
Mar17 249.50 / 251.50
Apr17 250.50 / 252.50
Q1-17 247.75 / 250.75
Q2-17 251.00 / 254.00
Q3-17 253.25 / 257.25
Q4-17 255.50 / 259.50
CAL17 253.00 / 257.00
CAL18 264.25 / 270.25
CAL19 277.00 / 285.00
CAL20 287.00 / 295.00

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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.