---

By the Oil Desk at Freight Investor Services Ltd.

Brent closed last night down 1.55 to $53.92 and WTI closed at $51.08 down 1.40. Well, that $55 support got smashed through yesterday didn't it? OPEC revised US production numbers to +230kbpb, and let's bear in mind that we're only 2 and a bit weeks into 2017 when the OPEC/ non-OPEC production cut is enforced. We are still fairly range bound, however, and this market is trying to cling on to $55. Some much-needed distraction from the macro fundamentals is needed and EIA data there you are to save the day with API reporting a draw on crude oil stocks. However, I personally cannot believe there is more space to store any more products, so with gasoline and distillates supposedly going to build again surely the refineries have to reduce runs. This will lead to a backlog in crude supplies and who knows where we go from there. Yes it does seem that demand is increasing but let's bear in mind that demand figures are retrospective, nobody has a crystal ball and whether people choose to put their hands in their pockets nobody knows, but with crude oil around 10pct lower in Q4 16 surely higher fuel costs will hurt demand?

Economic data/events (London times)

* 8am: Singapore onshore oil-product stockpile data

* 9am: IEA monthly oil market report

* ~11am: Russian refining maintenance schedule from ministry

* 1:30pm: U.S. Initial Jobless Claims for Jan. 14, est. 252k (prior 247k); U.S. Continuing Claims for Jan. 7, est. 2,075k (prior 2,087k); U.S. Housing Starts, Dec., est. 1,188k (prior 1,090k); Philadelphia Fed Business Outlook, Jan., est. 15.3 (prior 21.5)

* 2:45pm: Bloomberg Consumer Comfort, Jan. 15 (prior 45.1); Bloomberg Economic Expectations, Jan. (prior 53.5)

* 3:50pm: TOPLive EIA coverage begins

* 4pm: EIA weekly oil inventory report (delayed from Wednesday due to Martin Luther King Day)

* Today:

* PJK's weekly ARA oil product stockpiles report

* JODI Oil World database to release monthly report

* World Economic Forum Davos, 3rd day of 4: "Saudi Arabia's Path to 2030", with participation of Saudi Arabia Oil Minister Khalid Al-Falih

* Argus Americas Crude Summit, Houston, final day

* World Future Energy Summit, Abu Dhabi, final day

Singapore 380 cSt

Feb17 - 317.00 / 319.00

Mar17 - 316.25 / 318.25

Apr17 - 314.75 / 316.75

May17 - 313.50 / 315.50

Jun17 - 311.75 / 313.75

Jul17 - 310.25 / 312.25

Q2-17 - 313.50 / 315.50

Q3-17 - 309.75 / 311.75

Q4-17 - 305.25 / 307.75

Q1-18 - 302.25 / 304.75

CAL18 - 300.25 / 303.75

CAL19 - 278.75 / 283.75

Singapore 180 cSt

Feb17 - 323.00 / 325.00

Mar17 - 322.25 / 324.25

Apr17 - 321.75 / 323.75

May17 - 320.50 / 322.50

Jun17 - 319.00 / 321.00

Jul17 - 317.50 / 319.50

Q2-17 - 320.25 / 322.25

Q3-17 - 316.75 / 318.75

Q4-17 - 312.50 / 315.00

Q1-18 - 309.75 / 312.25

CAL18 - 307.75 / 311.25

CAL19 - 287.50 / 292.50

Rotterdam 3.5%

Feb17 296.50 / 298.50

Mar17 297.50 / 299.50

Apr17 298.00 / 300.00

May17 297.75 / 299.75

Jun17 297.00 / 299.00

Jul17 296.00 / 298.00

Q2-17 297.75 / 299.75

Q3-17 294.75 / 296.75

Q4-17 289.50 / 292.00

Q1-18 288.00 / 290.50

CAL18 286.00 / 289.50

CAL19 264.75 / 269.75

---

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.