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Fuel oil trend

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

Supply worries calmed by OPEC (Saudi Arabia) – Brent: $108.3

Ukrainian tensions continue; Russia has threatened to halt gas supplies to Ukraine on 3 June. New sanctions against Russian and pro-Russian rebels are implemented. The markets are worried about energy supply disruptions from Russia, but were calmed somewhat by assuring statement from OPEC country Saudi Arabia. According to Saudi Arabia's Oil Minister, Ali al-Naimi, the country is willing to supply any shortage in the oil supply market. Saudi Arabia has one of the world's largest oil reserves with a spare capacity of approx. 3 mbpd, according to al-Naimi.

On the economic key numbers’ side; the U.S Federal Budget Balance came out larger than expected yesterday. The number measures the difference in value between the federal government's income and expenditure. Later today, Retail Sales will be published. Expectations are improved data underpinning the recent improvement in the U.S. economy. In Europe, the ZEW Economic Sentiment will be published; some volatility is expected since the markets are anticipating an interest rate cut by the ECB next month to boost the European economies. Chinese Industrial Production came out at 8.7% (8.8% previous); a bit below expectations of 8.9%.

Tonight, the weekly API inventory numbers will be published; a draw in crude stock and builds in distillates and gasoline stocks are expected.