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By the Oil Desk at Freight Investor Services Ltd.

Brent closed down $0.68 on Friday to $49.95 and WTI closed at $47.66 down $0.70. A very volatile day on Friday where we were down below $49 at one point before the market grabbed on to $50 per bbl with all its might. A fairly chaotic start to the week with several GCC countries and Egypt severing ties with Qatar. It will be interesting to see how this pans out, but I think Qatar Airways should quickly get rid of their current slogan "Going places together" and replace with "Not going that many places very quickly". In terms of this affecting the crude oil market, I don't think it will have any immediate effect. It is highly unlikely we will see any international sanctions, which would nigh on cease the vast majority of Qatari crude oil production. However LNG is a different story - if importers like India and Japan are put under pressure to curb doing business with Qatar, then we could see the LNG market spike and spike hard. The most bullish factor I can see at the minute are mutings that Venezuela could be sanctioned. If you take out Venezuela and Qatar production, then it doesn't matter what driving season brings us, the market will rebalance itself straight away.

Economic Data/Events: (Times are London)

* ~12pm: ICE weekly commitments of traders report for Brent, gas oil

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

* 1:30pm: U.S. Nonfarm Productivity, 1Q final, est. -0.2% (prior -0.6%)

* 2:45pm: U.S. Markit Services PMI, May final (prior 54)

* Today:

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

* Africa Oil & Power, Cape Town, speakers to include two OPEC oil ministers: Nigeria's Emmanuel Kachikwu and Equatorial Guinea's Gabriel Lima, energy ministers from South Sudan, South Africa, Gambia and co. executives from across Africa, 1st day of 3

Singapore 380 cSt

Jul17 - 291.75 / 293.75

Aug17 - 291.25 / 293.25

Sep17 - 290.00 / 292.00

Oct17 - 289.00 / 291.00

Nov17 - 288.25 / 290.25

Dec17 - 287.50 / 289.50

Q3-17 - 291.00 / 293.00

Q4-17 - 288.25 / 290.25

Q1-18 - 286.25 / 288.75

Q2-18 - 286.00 / 288.50

CAL18 - 282.75 / 286.25

CAL19 - 270.50 / 275.50

CAL20 - 245.50 / 253.50

Singapore 180 cSt

Jul17 - 298.75 / 300.75

Aug17 - 298.00 / 300.00

Sep17 - 296.75 / 298.75

Oct17 - 296.00 / 298.00

Nov17 - 295.25 / 297.25

Dec17 - 294.50 / 296.50

Q3-17 - 297.75 / 299.75

Q4-17 - 295.25 / 297.25

Q1-18 - 293.25 / 295.75

Q2-18 - 293.25 / 295.75

CAL18 - 290.25 / 293.75

CAL19 - 278.50 / 283.50

CAL20 - 254.50 / 262.50

Rotterdam 380 cSt

Jul17 277.75 / 279.75

Aug17 276.00 / 278.00

Sep17 274.25 / 276.25

Oct17 272.50 / 274.50

Nov17 270.50 / 272.50

Dec17 268.50 / 270.50

Q3-17 276.00 / 278.00

Q4-17 270.50 / 272.50

Q1-18 269.75 / 272.25

Q2-18 270.50 / 273.00

CAL18 266.75 / 270.25

CAL19 253.00 / 258.00

CAL20 225.50 / 233.50

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