---

By the Oil Desk at Freight Investor Services Ltd.

Brent close up 4.55% at $56.80, and WTI with a similar rise to $54.07. As the sun rises on a very dreek Monday morning in London, the sun is shining a lot brighter in oil producing nations, as their seemingly impossible task a few months ago to agree a cut for OPEC and non-OPEC participants has been completed. Over the weekend, the non-OPEC nations agreed a cut of just under 600,000 bpd and the market has reacted, as we predicted, in a similar way to the OPEC deal. Crude levels are now flying relative to their levels earlier in the year. We all knew this was the cut level previously, in a similar situation to the OPEC cut deal, yet the market has reacted with the an exuberant giddiness - as though it has come as a complete surprise! Maybe the market will look at fundamentals a few months into the new year and react with the same surprise to find that countries have been pumping more oil than promised and that demand has not grown again, causing crude to fall - you heard it here first. For the moment, the market will be looking to the $60 mark; the ability to put the cut deals into practice is a question for another day.

Economic data/events

* 7:30am: Bloomberg December eurozone economic survey

* 9:30am: Norway Oil and Gas Association gives 5-year forecasts for investments in oil, gas industry

* ~noon: ICE weekly commitments of traders report for Brent, gasoil

* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* ~7pm: EIA monthly drilling productivity report

* Today:

* Bloomberg proprietary forecast of Cushing inventory change

* Caspian CPC, Azeri Supsa loading programs (January)

* ICE December gasoil futures expire

Singapore 380 cSt

Jan17 - 324.00 / 326.00

Feb17 - 322.00 / 324.00

Mar17 - 321.00 / 323.00

Apr17 - 320.50 / 322.50

May17 - 320.00 / 322.00

Jun17 - 319.50 / 321.50

Q1-17 - 322.25 / 324.25

Q2-17 - 319.00 / 321.00

Q3-17 - 317.25 / 319.75

Q4-17 - 314.75 / 317.25

CAL17 - 319.25 / 322.75

CAL18 - 313.75 / 318.75

Singapore 180 cSt

Jan17 - 330.75 / 332.75

Feb17 - 329.00 / 331.00

Mar17 - 328.00 / 330.00

Apr17 - 327.50 / 329.50

May17 - 327.00 / 329.00

Jun17 - 326.50 / 328.50

Q1-17 - 329.25 / 331.25

Q2-17 - 326.25 / 328.25

Q3-17 - 324.00 / 326.50

Q4-17 - 321.75 / 324.25

CAL17 - 326.25 / 329.75

CAL18 - 321.50 / 326.50

Rotterdam 3.5%

Jan17 302.75 / 304.75

Feb17 303.25 / 305.25

Mar17 303.75 / 305.75

Apr17 303.75 / 305.75

May17 303.75 / 305.75

Jun17 303.75 / 305.75

Q1-17 303.25 / 305.25

Q2-17 303.25 / 305.25

Q3-17 302.50 / 305.00

Q4-17 300.50 / 303.00

CAL17 302.50 / 306.00

CAL18 302.00 / 307.00

---

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.