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Fuel oil trend

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

Disappointing U.S. economic numbers; euro zone improvement (Brent: $108.2)

U.S. economic key numbers disappointed yesterday; Retail Sales came out at -0.4% versus 0.3% expected, Core Retail Sales at 0.0% versus 0.1% expected. Initial jobless Claims at 339K versus 330K expected. The Industrial Production (MoM) published later today will be watched closely.

Chinese Consumer Price Index (CPI) was published early this morning slightly better than expected (YoY 2.5% versus 2.3% and MoM 1.0% versus 0.7% expected); Producer Price Index was more or less in line with expectations (-1.6% versus -1.7% expected).

Continued supply disruptions in Libya. Libya’s total output fell to 460,000 bpd mainly because protesters shut pipelines from both El Wafa and El Sharahra oilfields.

The March Brent contract expired yesterday at $108.73/barrel. The Italian Prime Minister will apparently resign today – now the third leader in one year will take over management of the debt-struck country. A number of Euro zone GDPs will be /has been published today; the German and French GDPs came out above expectations indicating continued recovery in the area.

Recommendation

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