---

Fuel oil trend

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

Surprise build in crude stock (API) ahead of today's oil inventory report (Brent: $66.1)

Yesterday, the weekly oil stock data from the American Petroleum Institute showed builds all over; 4.400M for crude oil, 4.300M for distillates and 6.700M for gasoline stock. Now markets will be watching closely this afternoon's EIA report, where draw in crude, builds in distillates and gasoline are expected.

According to the latest monthly short-term energy outlook from the EIA, total U.S. crude oil production averaged 9.0M bpd in November and expectations to 2015 is around 9.3M bpd which is 0.1M bpd lower than expectations last month. It also revises its 2015 global demand forecast down by 0.2M bpd to around 92.3M bpd based on weaker global economic growth prospects.

The USD declined yesterday, after its steep increase last week following strong job market data – now investors’ eyes are on next week’s Fed meeting – wondering if there will be indications of an interest rate hike before summer 2015 – and if the "considerable time" phrase will remain.

This morning, inflation data from China came out below expectations; increasing fears of declining growth in the huge country which is the world’s second-largest consumer. Friday, the Chinese Industrial Production data will be published – a slight decline from 7.7% to 7.5% is expected. Apart from tonight’s U.S. Federal Budget Balance, no major economic data is out today.