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Fuel oil trend

Rotterdam: $ 4 lower
Singapore: $ 2 higher
US Gulf: $ 1 lower

The Fed ends bond buying; keeps rates unchanged - for now (Brent:$ 86.8)

The Fed's statement yesterday marked the end of the quantitative easing programme, but kept the comments about interest rates staying low for a 'considerable time'.

Yesterday's weekly EIA oil inventory report showed build in crude, draws in distillates and gasoline stocks. The build was smaller than expected and way smaller than last week's 7.1M build – current builds in crude are most likely due to refinery maintenance season.

Release: EIA oil data (Consensus)

Crude: 2.061M barrels (3.371M)
Distillates: -5.294M barrels (-1.157M)
Gasoline: 1.236M barrels (-0.986M)
Refinery utilization: -0.1%

Fighting between Sudan and South Sudan continues to affect oil production which is now down to around 160,000 barrels per day versus 245,000 bpd in Dec. 2013, when current fighting started. Peace negotiations are planned for next week, but an agreement on ceasefire from January has been broken several times, so optimism is limited.

Later today, German unemployment and inflation data will be published ahead of tomorrow's Eurozone data; recent numbers from Europe’s traditional growth engine has been deteriorating, augmenting fears of the country entering into recession. This afternoon, U.S. Q3 GDP data is published followed by head of the Fed, Yellen, speaking.