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By the Oil Desk at Freight Investor Services Ltd.

Brent closed up 0.07 to $50.84 and WTI closed at $47.84 up 0.51. So a fairly hectic start to the week with Saudi and Russia agreeing to extend the output cuts until end Q1 2018. Not bad and no we're not going to dismiss this piece of relatively bullish news. However, I did think we would see more of an aggressive push up than we did early this morning, but it's still early, so let's wait for London and the US to wipe the sleep away before really sensing how the market absorbs this news. If I'm honest, I think this is probably the best outcome for everyone - the cuts were always going to be extended and I couldn't see a real deepening of the cuts as that would come with the compromise of relinquishing market share; so for this agreement to be in place before the OPEC meeting and to clarify that the cuts could be there for the long run is, in theory, encouraging for flat price. I might add that I don't see why the Saudi's and Russians aren't picking up the phone to the producers in the USA. Surely, if they were to join in by agreeing to even a freeze at current production levels then flat price would most certainly get back to toward the $60 mark. A global oil output agreement? Can you imagine? Yeah and our hair might start growing back and our beer bellies will, regardless of doing zero exercise, slowly fade away and be left with a flat stomach. Never in a million years will that happen. With the US rig count increasing for its 17th consecutive week (we are currently at 712, up from an all-time low of 316 nearly a year ago), I think we can safely say that the crude oil battle is well and truly on.

Economic Data/Events: (Times are London)

* 12pm: ICE weekly commitments of traders report for Brent, gasoil

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

* 1:30pm: U.S. Empire Manufacturing, May

* 3pm: U.S. NAHB Housing Market Index, May

* Today, no exact timing:

* * EIA Drilling Productivity report, including DUC data

* * Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday EIA report

* * APPEA 2017 Conference, Perth, with participation of Shell, Woodside, BP, IEA execs, among others, 2nd day of 4

* * Urals 5-day loading program for June

Singapore 380 cSt

Jun17 - 295.00 / 297.00

Jul17 - 294.75 / 296.75

Aug17 - 294.25 / 296.25

Sep17 - 293.50 / 295.50

Oct17 - 292.75 / 294.75

Nov17 - 292.25 / 294.25

Q3-17 - 294.25 / 296.25

Q4-17 - 292.25 / 294.25

Q1-18 - 291.00 / 293.50

Q2-18 - 290.75 / 293.25

CAL18 - 287.00 / 290.50

CAL19 - 282.00 / 287.00

CAL20 - 259.25 / 267.25

Singapore 180 cSt

Jun17 - 302.50 / 304.50

Jul17 - 301.50 / 303.50

Aug17 - 301.00 / 303.00

Sep17 - 300.25 / 302.25

Oct17 - 299.75 / 301.75

Nov17 - 299.25 / 301.25

Q3-17 - 301.00 / 303.00

Q4-17 - 299.25 / 301.25

Q1-18 - 298.25 / 300.75

Q2-18 - 298.25 / 300.75

CAL18 - 294.50 / 298.00

CAL19 - 290.00 / 295.00

CAL20 - 268.25 / 276.25

Rotterdam 380 cSt

Jun17 279.75 / 281.75

Jul17 279.00 / 281.00

Aug17 278.25 / 280.25

Sep17 277.25 / 279.25

Oct17 276.25 / 278.25

Nov17 274.50 / 276.50

Q3-17 278.25 / 280.25

Q4-17 275.00 / 277.00

Q1-18 274.25 / 276.75

Q2-18 274.75 / 277.25

CAL18 270.50 / 274.00

CAL19 262.25 / 267.25

CAL20 238.00 / 246.00

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