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Fuel oil trend

Rotterdam: $ 2 higher
Singapore: $ 7 higher
US Gulf: $ 1 higher

Lower output from Libya and OPEC comments (Brent: $99.1)

Oil prices increased yesterday on news that Libya’s large oil field, El-Sharara, is closed due to rockets landing nearby; underpinning the fragile situation in the war-torn country. In addition, OPEC mentioned that the group could cut output target by 500,000 bpd in 2015.

According to yesterday's weekly oil stocks data from the American Petroleum Institute, crude oil stock unexpectedly increased by 3.300M barrels where a draw of 1.500M was expected. Distillate stocks increased by 1.000M barrels, a draw of 1.200M on gasoline stocks. This afternoon, the EIA will publish its weekly inventory report, a draw in crude and gasoline is expected, build in distillates.

Today we see a number of income and employment data from the UK as well as inflation data from the EU. Especially the latter will be followed closely as the euro zone has experienced a decrease in inflation data (CPI) since May. Yesterday, the German ZEW, the economic sentiment, fell for the 9th month in a row.

Main potential market mover today will be the comments from the U.S. central bank tonight (20.00 CET) - top of markets' mind being the timing of interest rate hike and the rate of ending the quantitative easing measures. Expect volatility around this time.