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By the Oil Desk at Freight Investor Services Ltd.

Brent closed up 0.24 last night to $54.16 and WTI closed up 0.29 to $51.37. EIA data showed a build on nigh on everything apart from a modest draw on distillates. Refinery runs were lower, which means less crude being run. Brazil and Canada are looking to increase production by 415kbpd this year and non-OPEC are looking to grow production by around 380kbpd, 260kbpd higher than OPEC estimates. Yet we close up. As I mentioned yesterday, demand does look like it is growing, but demand is there when prices are low, it is an extra incentive to get in your car and drive to the coast for an ice cream. But when prices are higher, the 99 with a flake stays in Mr Whippy's van and you get on the bus, go to a shopping centre and buy a skinny latte. Simple maths. I agree with the IEA, it is wayyyyy too early to actually take a position on the back of whether this OPEC agreement has actually yielded anything positive, and indeed if anyone apart from the GCC has actually adhered to the agreement, but the numbers don't lie, w/o/w we are down 3.5% on Brent. Is this market scepticism? Or are people waiting on the sidelines for some real evidence to come out like an excited Jack Russell waiting for his favourite toy to be thrown? I think we will bounce around this $55 handle for a while yet.

Economic data/events (London times)

* 6pm: Baker Hughes weekly U.S. oil rig counts (prior 522)

* 8:30pm: Commodity Futures Trading Commission weekly report on futures and options positions

* Today:

* World Economic Forum Davos, final day

* Russia Urals 10-day loading program (Feb.)

* Inauguration U.S. President-elect Donald Trump

Singapore 380 cSt

Feb17 - 312.75 / 314.75

Mar17 - 311.50 / 313.50

Apr17 - 310.25 / 312.25

May17 - 309.50 / 311.50

Jun17 - 308.50 / 310.50

Jul17 - 307.25 / 309.25

Q2-17 - 309.50 / 311.50

Q3-17 - 306.00 / 308.00

Q4-17 - 302.00 / 304.50

Q1-18 - 299.25 / 301.75

CAL18 - 297.75 / 301.25

CAL19 - 276.25 / 281.25

Singapore 180 cSt

Feb17 - 318.50 / 320.50

Mar17 - 317.25 / 319.25

Apr17 - 317.00 / 319.00

May17 - 316.25 / 318.25

Jun17 - 315.50 / 317.50

Jul17 - 314.25 / 316.25

Q2-17 - 316.25 / 318.25

Q3-17 - 313.00 / 315.00

Q4-17 - 309.25 / 311.75

Q1-18 - 306.75 / 309.25

CAL18 - 305.25 / 308.75

CAL19 - 285.00 / 290.00

Barges

Feb17 292.25 / 294.25

Mar17 293.25 / 295.25

Apr17 293.50 / 295.50

May17 293.50 / 295.50

Jun17 293.00 / 295.00

Jul17 292.00 / 294.00

Q2-17 293.50 / 295.50

Q3-17 290.50 / 292.50

Q4-17 285.25 / 287.75

Q1-18 284.00 / 286.50

CAL18 283.25 / 286.75

CAL19 267.25 / 272.25

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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.