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Fuel oil trend

Rotterdam: $ 4 lower.
Singapore: $ 7 lower.
US Gulf: $ 1 lower.

Oil prices dip on improved Libyan supply outlook (Brent: $111)

Outlook for increased oil supply from Libya made oil prices drop yesterday as the Libyan government apparently struck a deal with the rebels to hand over two large oil terminals with a total capacity of approx. 500,000 bpd.

Economic data from China showed continued growth with this morning's HSBC China Services PMI at 53.1 versus 50.7 previous; non-manufacturing PMI came out slightly below last reading (55.0 versus 55.5)

The weekly oil inventory data from the U.S. came out with larger-than-expected draws in crude oil and gasoline inventories, on consensus in distillates stocks yesterday. The weekly refining utilization came out at 2.9% versus 1.4% previous.

Yesterday's U.S. employment data came out improved (281K versus 179K previous) and markets are now awaiting today’s Nonfarm Payrolls and ISM Non-Manufacturing data for hints of further strengthening of the U.S. economy. Expect some volatility around publishing of these numbers (14.30 + 16.00 CET).