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By the Oil Desk at Freight Investor Services Ltd.

Brent closed up $1.10 last night to $49.68 and WTI closed at $47.07 up $1.03. So we witnessed another rally on crude yesterday as the market seemed happy to accept the news about the US rig count. We fear the rally may be getting a little ahead of itself though, but, as I have said, any news of a bullish nature the market will latch on to like an excited Wimbledon qualifier. In theory, when EIA release their weekly report on Thursday, we should see significant draws on everything. Independence day weekend should be the biggest weekend for people hopping in their cars to go and tailgate and watch fireworks, so I see the rally extending, pushing Brent up to a possible dizzying $52.50. But again, we will come down again if US stocks do not continue to draw and in this range we will be for some time yet. It will be amazing the contrast from the last few weeks to the days ahead after a surprise drop in the U.S. rig count, and some sustained draws in the EIA data. In other news, OPEC are saying there is no need for the cuts to be deepened - shock seeing as flat price is going up; if it was the other side of $45 per bbl they'd be squabbling round a table as we speak.

Economic Data/Events: (UK times)

* U.S. Holiday, Independence Day, stock and bond markets are closed, along with govt offices

** ICE energy products close trading at 1:30pm ET on July 4, settlement 12:58pm-1pm ET

** CME Globex energy derivatives halt trading early at 1pm ET on July 4 then reopen at normal time of 6pm ET later that day for start of session that continues into July 5

** NOTE: API U.S. crude stockpiles data release delayed until Wednesday

* Today:

** Chinese President Xi Jinping visits Moscow for 2 days, during which he's due to meet Russian President Vladimir Putin

Singapore 380 cSt

Aug17 - 295.25 / 297.25

Sep17 - 293.75 / 295.75

Oct17 - 292.25 / 294.25

Nov17 - 291.50 / 293.50

Dec17 - 290.75 / 292.75

Jan18 - 290.00 / 292.00

Q4-17 - 291.50 / 293.50

Q1-18 - 290.00 / 292.00

Q2-18 - 290.00 / 292.50

Q3-18 - 290.25 / 293.25

CAL18 - 293.75 / 297.25

CAL19 - 290.00 / 295.50

CAL20 - 269.50 / 277.50

Singapore 180 cSt

Aug17 - 300.50 / 302.50

Sep17 - 299.25 / 301.25

Oct17 - 297.75 / 299.75

Nov17 - 297.75 / 299.75

Dec17 - 297.25 / 299.25

Jan18 - 296.50 / 298.50

Q4-17 - 297.50 / 299.50

Q1-18 - 297.00 / 299.00

Q2-18 - 297.25 / 299.75

Q3-18 - 297.75 / 300.75

CAL18 - 301.00 / 304.50

CAL19 - 298.00 / 303.50

CAL20 - 278.50 / 286.50

Rotterdam 380 cSt

Aug17 281.00 / 283.00

Sep17 278.50 / 280.50

Oct17 276.25 / 278.25

Nov17 274.25 / 276.25

Dec17 272.25 / 274.25

Jan18 273.75 / 275.75

Q4-17 274.25 / 276.25

Q1-18 274.25 / 276.25

Q2-18 276.00 / 278.50

Q3-18 276.50 / 279.50

CAL18 278.50 / 282.00

CAL19 272.50 / 278.00

CAL20 246.25 / 254.25

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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.