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Fuel oil trend

Oil prices increase slightly on improved U.S. data and strike in Libya (Brent: $97.3)

Yesterday's data on U.S. consumer spending showed an increase of 0.5% (versus -0.1% previous) – increasing expectations of improving economy = increased demand for oil. At 16.00 CET, the CB Consumer Confidence will display further direction of the economic state of the country.

In Libya, a strike makes oil output drop to 900,000 bpd, highlighting the volatility of oil production in the country. In our quarterly outlook, which is published this week, we analyse the situation in Libya and the prospects for oil production in the troubled country.

Activity in the Chinese manufacturing sector climbed just above the 50ish level this morning (50.2) signifying expansion; and still considerably better than April’s low of 48.0. Now eyes are on Wednesday’s Manufacturing PMI for further direction of the world's second-largest economy.

Coming up later this morning is the European Consumer Price Index (CPI). The weekly oil inventory data from the American Petroleum Institute will be published at 22.30 CET ahead of tomorrow's data from the EIA.