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Fuel oil trend

Rotterdam: $ 3 higher
Singapore: $ 2 lower
US Gulf: $ 6 higher

Oil prices around $40 will not make OPEC blink (Brent: $62.7)

News of OPEC sticking to its November-decision not to cut output weighs on oil prices which are currently trading near 5-year low. According to OPEC member UAE, the organization will let market stabilise itself and even if prices touch $40, there will be no consideration of an emergency meeting ahead of the planned meeting in June 2015.

Fighting in Libya, holding Africa’s largest oil reserves, has resulted in declaration of force majeure at two large oil ports with a combined capacity of 560,000 bpd and output halt of a number of oil fields over the weekend.

The world’s third-largest consumer, Japan, re-elected Prime Minister Abe yesterday and he now has two years to implement his economic program.

On the economic data front, the main potential market mover will be Wednesday’s FOMC meeting – will the phrase “considerable time” as regards keeping interest rates at current level remain or be replaced. The Committee also gives forecasts for the economy and inflation expectations. The EU leaders are meeting for a 2-day summit in Brussels to discuss economy and Russia sanctions.