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Trends

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

Oil prices trading sideways after a slight increase on Friday (Brent: $108.1)

Good economic key numbers from China drove prices slightly up on Friday.

Western sanctions are biting in Iran – the country's oil revenues have halved in 2012 compared to last year, according to Economic Minister Shamseddin Hosseini – the country’s budget will be affected due to the sanctions.

In Japan, the newly elected party has expressed pro-nuclear energy opinion. According to the EIA, Japan consumed an estimated 4.5 mio. bpd in 2011 – making it the third-largest petroleum consumer in the world.

ECB President Draghi will be speaking at the European Parliament today at 14.30 CET. Markets will watch for signs of interest rate cuts or other easing measures. Eurozone PMI of last week showed a marginal increase of 0.1%. Wednesday, the German IFO numbers will be important to follow.

In the US, the fiscal cliff talks are still going strong – some media report of softening in the negotiations with Republican House Speaker John Boehner stating an acceptance of tax increase for the wealthiest Americans. Later this week, Existing Homes Sales and the Philly FED Manufacturing Survey will give an indication of trends in the economy.

Recommendation

As always, we advise consumers to establish hedges during market dips. Currently we are seeing on of these dips across the product range! Particularly heavy fuel prices have been slammed, providing good buying opportunities for consumers. The position squaring by speculators are giving favourable opportunities during this week.