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By the Oil Desk at Freight Investor Services Ltd.

Brent closed up 0.55 to $50.77 and WTI closed at $47.83 up 0.50. So what has the week brought us? Well, Brent can look back and be mildly happy with itself. We're up 5% on the week, not bad. However, and there is always a however, OPEC increased their production levels for 2017 from "other producers" by 65%. 65%!! It's only May! How wrong can you be? That's like asking a gardener to mow your lawn but instead you find him trying to paint the ceiling of the Sistine chapel in your garden shed. Wrong, get out. So OPEC have finally acknowledged that "other" production is roofing. I can only assume "others" means Canada, Brazil and the US. Anyway it's a step forward to at least acknowledge this fact. So I assume demand is what's going to cause the market to rebalance itself. Ahem, again I don't think so. China and India both came out yesterday saying that they want more electric cars on the road. Good for Elon Musk, bad for Mr Barkindo. So based on the fact that production is increasing and demand is steady, what to do? I really see there being only one alternative and that is for OPEC to not only extend the cuts (which surely has already been priced in) but to increase the cuts, right? But will this just trigger a more sustainable growth path for the "others"? Answers on a postcard please.

Economic Data/Events: (Times are London)

* 7am: Germany GDP SA q/q for 1Q, prelim., est. 0.6% (prior 0.4%)

* 7am: Germany CPI m/m for April, final, est. 0% (prior 0%)

* 7am: Germany CPI y/y for April, final, est. 2% (prior 2%)

* 1:30pm: U.S. CPI m/m for April, est. 0.2% (prior -0.3%)

* 1:30pm: U.S. retail sales advance m/m for April, est. 0.6% (prior -0.2%)

* 2:15pm: Federal Reserve Bank of St. Louis President James Bullard will speak to the Association for Corporate Growth at Washington University's Knight Center, St. Louis

* 3pm: University of Michigan sentiment for May, prelim., est. 97 (prior 97)

* 6pm: Baker Hughes weekly U.S. oil, gas rig counts

* ~8pm: North Dakota releases production data for March

* 8:30pm: CFTC weekly commitments of traders report on U.S. futures, options contracts

Singapore 380 cSt

Jun17 - 290.50 / 292.50

Jul17 - 290.25 / 292.25

Aug17 - 289.75 / 291.75

Sep17 - 289.00 / 291.00

Oct17 - 288.50 / 290.50

Nov17 - 288.00 / 290.00

Q3-17 - 289.75 / 291.75

Q4-17 - 288.00 / 290.00

Q1-18 - 286.75 / 289.25

Q2-18 - 286.50 / 289.00

CAL18 - 284.25 / 287.75

CAL19 - 280.50 / 285.50

CAL20 - 256.75 / 264.75

Singapore 180 cSt

Jun17 - 298.00 / 300.00

Jul17 - 297.00 / 299.00

Aug17 - 296.50 / 298.50

Sep17 - 295.75 / 297.75

Oct17 - 295.50 / 297.50

Nov17 - 295.00 / 297.00

Q3-17 - 296.50 / 298.50

Q4-17 - 295.00 / 297.00

Q1-18 - 294.00 / 296.50

Q2-18 - 294.00 / 296.50

CAL18 - 291.75 / 295.25

CAL19 - 288.50 / 293.50

CAL20 - 265.75 / 273.75

Rotterdam 380 cSt

Jun17 274.75 / 276.75

Jul17 274.25 / 276.25

Aug17 273.50 / 275.50

Sep17 272.75 / 274.75

Oct17 271.75 / 273.75

Nov17 270.25 / 272.25

Q3-17 273.50 / 275.50

Q4-17 270.25 / 272.25

Q1-18 269.75 / 272.25

Q2-18 269.50 / 272.00

CAL18 267.75 / 271.25

CAL19 258.25 / 263.25

CAL20 239.25 / 247.25

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