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Fuel oil trend

Rotterdam: $ 7 higher.
Singapore: $ 1 lower.
US Gulf: $ 1 higher.

Growth pick-up in China; Yellen confident of stable U.S. financial outlook (Brent: $108.6)

Improved economic key numbers from China this morning; both exports and imports exceeded expectations (up 10.6% and 10.0% respectively) as did the trade balance (31.86B). China being the world's second-largest consumer, this is supportive for oil prices.

The weekly API oil inventory data showed no surprises; builds in crude, draw in distillates and gasoline stocks. The official EIA numbers published this afternoon (16.30 CET) will be interesting to follow. Any deviation from expectations could cause some volatility in oil prices. Furthermore, the EIA has revised its world oil demand forecast for 2014 to 1.26 mbpd which is 50,000 bpd higher than its previous forecast.

At her first speech, new Fed chairman, Yellen, yesterday said the Fed will continue the current tapering of the bond-buying programme and that the recent volatility in global financial markets poses no substantial risk to the U.S. economic outlook. On another note, a one-year extension of debt limit agreement was passed through the U.S. House yesterday - the law must also be approved by the Senate; discussions will probably commence today.

Recommendation

We particularly advise consumers to take note that the low inventories for distillates and lighter products could lead to fundamentally firmer prices.