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Trends

Rotterdam (ARA) fuel oil - Trading USD 1 lower

Singapore fuel oil - Trading USD 6 higher

US Gulf - Expected to open USD 5 lower

US jobless claims rise less than expected

Rising less than expected, US unemployment data injected broad optimism into the capital markets and increased investors' risk appetite. DJIA and S&P 500 indexes have rallied more than 2.5% and oil broke the strong 75$ resistance.

International Energy Agency outlook supports oil prices

IEA revised its 2010 oil demand growth forecast up by 70,000 barrels per day (bpd) to 1.68 million bpd. Strong Chinese export data, indicating to stabilising European demand, and increased gasoline consumption in the US, due to higher goods transportation activity, were stated as the main reasons for the revised numbers.

China's macroeconomic data raises concerns about sooner-than-expected inflation

Consumer and Producer Price Indexes for China came out higher than expected indicating inflation concerns are now priced in the real sector data. Oil and similar commodities are used as effective inflation hedges and continuation of such data will put upward pressure on prices in the long-run.

Today's important numbers are the US retail sales, consumer confidence and inflation expectations.

Recommendation

We recommend consumers to hedge future exposure at current prices.