---

Fuel oil trend

Rotterdam: $ 1 higher.
Singapore: $ 3 lower.
US Gulf: $ 2 lower.

Improved situation in Ukraine and export expectations from Libya (Brent: $110.6)

The geopolitical risk seems reduced in Ukraine, where army troops have succeeded in recapturing several large cities in eastern Ukraine from pro-Russian rebels; the rebels have fled further east towards the border.

In Libya, the government lifts force majeure on oil exports from two large eastern ports. Current output from Libya is approx. 325,000 bpd. According to the state-run oil company, it will be some time before the production is up and running due to maintenance of the fields and pipelines which have been closed down for almost a year – but potential exports from the ports is approx. 500,000 bpd per port.

Economic key numbers are scarce today; the German Industrial Production came out lower this morning, other than that it is a quiet day data-wise. Tomorrow, a row of key data will come from the UK; Wednesday Chinese CPIs and PPI will be published; markets will follow the data closely for hints of continued growth in the huge oil consuming country.