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Fuel oil trend

Rotterdam: $ 1 higher. Singapore: $ 1 higher. US Gulf: $ 1 lower.

Saudi Arabian output still near record highs (Brent: $111.5)

The Middle Eastern Kingdom produced 9.745mbpd in November (slightly down from 9.75 in October) and only a few hundred thousand barrels short of its record +10mbpd production. While a significant portion of the production is used for domestic power production (mainly for airconditions) the vast majority is exported (approx. 9.5 mbpd).

Libya is still facing yo-yo production/export as local tribe leaders seize oil ports. Though country is exporting less than 10% of the pre-2010 levels, and the outlook remains bleak.

Recommendation

We are heading towards year-end and traders will likely start reducing positions - as they do every year. Lower liquidity is expected to set in over the next few weeks, and potential outliers in prices could emerge as a result (as it takes relatively smaller orders to impact market direction). Costumers are advised to take advantage of these outliers, as the market usually returns to “normal” shortly into the New Year.