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Fuel oil trend

Rotterdam: $ 5 higher
Singapore: $ 1 lower
US Gulf: $ 3 higher

Chinese growth data and supply/demand-driven market (Brent: $86.0)

The oil market currently seems supply/demand driven – with ample supply and dwindling demand around the world. The U.S. and Russia are pumping record-high levels of oil and OPEC countries are hesitating to curb oil output. The world's largest oil producer, Saudi Arabia, pumped around 9.7 million bpd in September . Exports to among others the U.S. is pressured by the shale oil boom and August exports was the lowest since 2011 (6.663 mbpd). After Canada, Saudi Arabia is the biggest exporter to the U.S., but average exports to the U.S. was around 1.0 – 1.2 mbpd (May-August) compared to 1.3-1.6 mbpd (mid-2013-April 2014).

Economic data from China this morning showed slightly lower GDP growth (7.3% versus 7.5% previous), but improved Industrial Production (8.0% versus 6.9% previous). Government target for GDP 2014 is 7.5%.

Main economic data today is from the U.S.; the September existing home sales (16.00 CET). Tonight, the API will publish the weekly oil inventory data; a(nother) increase in crude stock is expected.