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By the Oil Desk at Freight Investor Services Ltd.

Brent closed Friday down $1.40 to $46.71 and WTI closed at $44.23 down $1.29. Well, that was a pretty miserable end to the week for crude, wasn't it? I don't see any particular encouraging signs for a bounceback either. US rig count is at a 26-month high, Kazakhstan want out of the OPEC/non-OPEC production agreement and to increase production after that, Libya and Nigeria are continuing their output recovery and the US will be exporting more and more to buyers in Europe and Asia. Ouch. I think out of all the above stories, though, it is how aggressive the US crude oil producers are right now in terms of trying to capture market share. Apparently, BPCL have just bought their first ever US cargo via a tender. If I were in OPEC shoes I would be much more concerned about looking after my shorts and ensuring they are serviced properly as I would be concerned about flat price. The tug of war that is occurring between the output agreement and other producers filling the void seems like it is the new norm. I think we will be in this range for a while and $50 per bbl still looks to be the top of the market for a while yet.

Economic Data/Events: (UK times)

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

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

* 3pm: U.S. labor market conditions index, June

*Today:

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

Singapore 380 cSt

Aug17 - 281.25 / 283.25

Sep17 - 279.75 / 281.75

Oct17 - 278.50 / 280.50

Nov17 - 277.75 / 279.75

Dec17 - 277.25 / 279.25

Jan18 - 276.75 / 278.75

Q4-17 - 278.00 / 280.00

Q1-18 - 276.75 / 278.75

Q2-18 - 277.00 / 279.50

Q3-18 - 277.50 / 280.50

CAL18 - 277.50 / 281.00

CAL19 - 272.50 / 278.00

CAL20 - 252.00 / 260.00

Singapore 180 cSt

Aug17 - 287.25 / 289.25

Sep17 - 286.00 / 288.00

Oct17 - 284.75 / 286.75

Nov17 - 284.25 / 286.25

Dec17 - 283.75 / 285.75

Jan18 - 283.25 / 285.25

Q4-17 - 284.25 / 286.25

Q1-18 - 283.75 / 285.75

Q2-18 - 284.25 / 286.75

Q3-18 - 285.50 / 288.50

CAL18 - 284.75 / 288.25

CAL19 - 281.75 / 287.25

CAL20 - 261.00 / 269.00

Rotterdam 380 cSt

Aug17 267.00 / 269.00

Sep17 264.75 / 266.75

Oct17 262.75 / 264.75

Nov17 260.75 / 262.75

Dec17 259.00 / 261.00

Jan18 260.75 / 262.75

Q4-17 261.00 / 263.00

Q1-18 261.75 / 263.75

Q2-18 263.50 / 266.00

Q3-18 264.00 / 267.00

CAL18 262.25 / 265.75

CAL19 257.00 / 262.50

CAL20 233.50 / 241.50

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