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Fuel oil trend

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

Oil prices at month low (Brent: $110)

Oil prices slipped just below $110 this morning as supply fears are easing and the outlook for Libyan oil exports is improving.

In Ukraine, army forces continue trying to recapture territory from the pro-Russian rebels in the eastern part of the country. Large western countries are discussing imposing additional sanctions to Russia which they claim is providing the rebels with weapons.

Quote from our quarterly report on Libya: "The recent deal to export up to 0.5 mbpd extra will have to pass the '2-week' test, which is so far the record period rebels and Tripoli have agreed. We don’t expect the security situation to be resolved anytime soon, and thus the well-below par production is expected to continue for several months."

Tonight, weekly oil inventory data from the American Petroleum Institute will be published (22.30 CET) – last week showed draws in crude and gasoline stocks, build in distillates. An additional draw in crude stock is expected again this week.

No big economic key data on the agenda today; last night Japan's Adjusted and Current Account came out improved - later today the U.K. Manufacturing Production will be published.