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Fuel oil trend

Rotterdam: $ 1 lower.
Singapore: $ 4 lower.
US Gulf: $ 1 lower.

Oil prices slightly down - fragile situation in Ukraine/Iraq (Brent: $113)

Today, Ukraine is expected to sign an association agreement with the EU; in the midst of smouldering unrest with a faltering ceasefire between the government and pro-Russian separatists. After the meeting with Ukraine’s President Poroshenko, the EU leaders will end the two-day summit by discussing possible new sanctions against Russia.

Iraqi officials report of air strikes against rebels by Syria, in Iraq, near the border. Unrest increased in Kirkuk yesterday, the oil hub of northern Iraq which was recently taken over by Kurdish forces. Oil markets are watching closely any hints of supply disruptions from the oil-rich country with a daily oil production of approx. 3.3 mbpd. Though Iraq has the 5th largest proven crude oil reserves in the world, infrastructure limitations and political disputes have made it difficult to increase output over the years.

Economic data:

Yesterday’s economic data from the U.S. came out slightly improved with Initial Jobless Claims at 312K (314K previous) and Personal Spending at 0.2% (0.0% previous). This morning, Japanese key numbers showed a drop in Household Spending, and a less than expected drop in Retail Sales (-0.4% versus -4.4% previous). U.K. GDP will be published at 10.30 CET.