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Fuel oil trend

Rotterdam: $ 1 higher.
Singapore: $ 2 lower.
US Gulf: trading unchanged.

Oil prices inch downwards as tensions ease, inventories augment (Brent: $109.8)

Yesterday's U.S. API oil inventory data showed an unexpected build in crude (1.500M) and draws in distillates and gasoline stocks (-0.298M and -0.441M respectively). Expect some volatility when the EIA oil inventory data is published later today (16.30 CET) as markets await confirmation of the trend. Published later tonight is the U.S. Federal Budget Balance, which measures the difference in value between income and expenses of the federal government on a monthly basis.

Talks on gas bill dispute between Russia and Ukraine will resume this morning; Russia gave a six-day extension to the payment ahead of the meeting and hopes are high for reaching an agreement.

At the OPEC bi-annual meeting today, expectations are that output from the member countries will remain at approx. 30 mio. bpd with oil prices comfortably above $100 level. OPEC-member