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Fuel oil trend

Rotterdam: $ 0 lower. Singapore: $ 1 lower. US Gulf: $ 3 lower.

Prices likely to stay put today (Brent: $110.8)

As yesterday was Thanksgiving Day in the U.S., and today is (for those not part of the vast crowd of U.S. employees taking a long weekend.) only half a day, we don't expect much price action to take place today. No majorly important macro figures are scheduled for today.

OPEC meeting

Wednesday next week OPEC is teaming up to discuss their production limit currently set at 30 mbpd. Although it appears likely that a production cut will be likely (to partly mitigate the US shale oil boom), we estimate consensus to end with an unchanged production target.

Recommendation

We do not see further downwards pressure from the Iran issue, unless there is a major breakthrough/approval from U.S. Congress – without amendments. 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.