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By the Oil Desk at Freight Investor Services Ltd.

Brent closed down 0.02 last night to $50.87 and WTI closed at $48.69 down 0.12. Weird Wednesday I'm sure will continue today with API claiming that there will be another huge draw on crude of 7mn bbls. Is US demand picking up? Mmm, I'm sitting on the fence on this one. Many believe it is rebalancing quicker than most people thought it would, but if you read between the lines then the numbers paint a different story. Hurricane Matthew continues to blow and this will, more than likely, affect the USGC oil complex; so this, coupled with a draw on crude, we could see a very positive day for oil. Elsewhere across the barrel, we are seeing the fuel oil market flip back into contango down the curve; time will only tell if this spells the end to what has been a relatively strong summer for refining margins. Cable continues its downward cycle and at the time of writing we have just broken 1.27. Good if your income is in dollars, so expect another rally on the FTSE.

Economic data/events

* 9am: Eurozone Markit PMI services for Sept. F, est. 52.1 (prior 52.1); Eurozone Markit PMI composite for Sept. F, est. 52.6 (prior 52.6)
* 12pm: U.S. MBA Mortgage Applications, Sept. 30, prior -0.7%
* 1:15pm: U.S. ADP Employment change, Sept., est. 165k (prior 177k)
* 1:30pm: U.S. Trade balance, Aug., est. -$39.2b (prior - $39.5b)
* After 1:30pm: U.S. Census Bureau issues Aug. crude export data
* 2:45pm: U.S. Markit PMI services for Sept. F, est. 51.9 (prior 51.9); U.S. Markit PMI composite for Sept. F, prior 52
* 3pm: U.S. Sept. ISM non-mfg composite, est. 53 (prior 51.4); U.S. Aug. factory orders, est. -0.2% (prior 1.9%); U.S.
durable goods orders for Aug. F, est. 0% (prior 0%)
* 3:30pm: EIA weekly U.S. oil inventory report
* Today: Saudi Aramco may issue Nov. OSPs
* Today: Genscape's weekly ARA crude stockpiles report
* Today: U.S. Census Bureau issues Aug. crude export data
* Today: Rystad Energy Oil & Gas Summit, London
* Today: Alfa Energy's 'The Energy Market' conference, London
* Today: Latin America's Refining, Petrochemical Industry conference, Mexico City

Singapore 380 cSt

Nov16 - 265.50 / 267.50
Dec16 - 266.25 / 268.25
Jan17 - 266.50 / 268.50
Feb17 - 267.50 / 269.50
Mar17 - 268.50 / 270.50
Apr17 - 269.50 / 271.50
Q1-17 - 266.50 / 269.00
Q2-17 - 269.50 / 272.00
Q3-17 - 272.50 / 275.50
Q4-17 - 275.00 / 278.00
CAL17 - 273.50 / 276.50
CAL18 - 285.00 / 290.00
CAL19 - 299.00 / 305.00
CAL20 - 310.50 / 318.50

Singapore 180 cSt

Nov16 - 271.25 / 273.25
Dec16 - 272.25 / 274.25
Jan17 - 272.50 / 274.50
Feb17 - 273.50 / 275.50
Mar17 - 274.75 / 276.75
Apr17 - 275.50 / 277.50
Q1-17 - 272.50 / 275.00
Q2-17 - 276.00 / 278.50
Q3-17 - 279.00 / 282.00
Q4-17 - 282.00 / 285.00
CAL17 - 280.25 / 283.25
CAL18 - 293.50 / 298.50
CAL19 - 308.00 / 314.00

Rotterdam 3.5%

Nov16 249.25 / 251.25
Dec16 249.00 / 251.00
Jan17 252.00 / 254.00
Feb17 253.00 / 255.00
Mar17 254.25 / 256.25
Apr17 255.50 / 257.50
Q1-17 253.00 / 255.50
Q2-17 257.00 / 259.50
Q3-17 259.75 / 262.75
Q4-17 262.00 / 265.00
CAL17 259.00 / 262.00
CAL18 270.25 / 275.25
CAL19 283.50 / 289.50
CAL20 292.50 / 300.50

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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.