---

By the Oil Desk at Freight Investor Services Ltd.

Brent closed down $0.54 last night to $57.90 and WTI closed at $52.14, down $0.26. So another APPEC passes us by. Well, I think we have seen a fairly seismic shift in Q3 for not only flat price but also market structure (most - if not all - markets are now sizeably backwardated). Also the US rig count is down 12 in Q3. OPEC/Non-OPEC look to be ready, if needed, to extend the cuts in March. All positive results which have meant the vast majority of people are walking round and thinking that perhaps they should look to take advantage of this position rather than show complacency, which perhaps has been the demise of some traders in the past. The one elephant in the room, however, and it is a woolly mammoth of an elephant, is demand. I'm reading demand is up everywhere and this is going to help the market rebalance. Look, for me the market is fairly simple: if demand does increase, then of course stocks will be drawn and the market starts to rebalance, but I don't really see that they are. EIA data last night was hardly encouraging. Refiners' runs are up to prior-Harvey levels and US production is back to 9.5mn bpd. Driving season is over and people weren't dressed like Dennis Hopper driving down Route 66 all summer, were they? I don't know. All I know is that the swimming costume is well and truly locked away.

Economic Data/Events: (UK times)

*10am: Eurozone consumer confidence for Sept., final

*12pm: Russia refining maintenance schedule from ministry

*1pm: Germany CPI y/y for Sept., prelim.

*1:30pm: U.S.

*GDP annualized q/q for 2Q

**Initial jobless claims for week ended Sept. 23

**Continuing Claims, Sept. 16

**Wholesale inventories m/m for Aug., prelim.

*2:45pm: Bloomberg Consumer Comfort Index, Sept. 24

*No exact timing

**Forties, Ekofisk and other NSEA loading programs

Singapore 380 cSt

Oct17 - 330.75 / 332.75

Nov17 - 328.25 / 330.25

Dec17 - 325.75 / 327.75

Jan18 - 323.25 / 325.25

Feb18 - 321.25 / 323.25

Mar18 - 320.25 / 322.25

Q4-17 - 328.25 / 330.25

Q1-18 - 321.25 / 323.25

Q2-18 - 317.75 / 320.25

Q3-18 - 314.50 / 317.00

CAL18 - 314.75 / 317.75

CAL19 - 300.00 / 305.00

CAL20 - 286.00 / 293.00

Singapore 180 cSt

Oct17 - 334.75 / 336.75

Nov17 - 333.00 / 335.00

Dec17 - 332.00 / 334.00

Jan18 - 329.75 / 331.75

Feb18 - 327.75 / 329.75

Mar18 - 327.00 / 329.00

Q4-17 - 333.25 / 335.25

Q1-18 - 327.75 / 329.75

Q2-18 - 325.25 / 327.75

Q3-18 - 322.00 / 324.50

CAL18 - 321.75 / 324.75

CAL19 - 308.75 / 313.75

CAL20 - 295.00 / 302.00

Rotterdam 380 cSt

Oct17 314.00 / 316.00

Nov17 309.75 / 311.75

Dec17 306.00 / 308.00

Jan18 305.75 / 307.75

Feb18 305.25 / 307.25

Mar18 304.75 / 306.75

Q4-17 304.75 / 306.75

Q1-18 305.25 / 307.25

Q2-18 303.50 / 306.00

Q3-18 300.75 / 303.25

CAL18 298.75 / 301.75

CAL19 283.00 / 288.00

CAL20 266.75 / 273.75

---

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.