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Fuel oil trend

Rotterdam: $ 4 higher.
Singapore: $ 3 higher.

Oil above $115 on continued geopolitical tensions and improved Chinese economic data.

Ukraine and Iraq are still experiencing violence and unrest; in Iraq rebels have taken over several cities and two important border crossings leading to increasing fears of supply disruptions from the oil rich country. In Ukraine, the unilateral ceasefire which the Ukrainian government imposed last week, seems under pressure on reports of fighting between the pro-Moscow forces and the Ukrainian army.

In Libya, the large EL Feel oil field has reopened and tankers are said to be loading oil for exports after the reopening of the port. Production is now approx. 270,000 bpd according to the National Oil Corp.

This morning, the HSBC China Manufacturing PMI showed an increase to 50.8 in June; the best reading for several months; and the first time the number was above 50 (which indicates growth rather than contraction) raising hopes of a pickup in growth for the world's second-largest consumer. Later today, there is a row of European PMI’s coming up and the U.S. existing home sales are due at 16.00 CET.