---

Trends

Rotterdam (ARA) fuel oil - USD4 lower

Singapore fuel oil - USD3 higher

US Gulf fuel oil - USD5 lower

Holding their breath awaiting the outcome of the EU summit (Brent: $92.5)

The leaders of the EU countries are meeting in Brussels today. Oil is trading sideways and the markets are holding their breath - waiting for news on the result of the summit. The leaders will be discussing how to curb the euro zone debt crisis.

Supply disruptions continue as the strike in Norway is cutting oil output by 240,000 bpd.

The situation in the Middle East is still tense - the unrest in Syria is escalating and a quick solution is not in sight. Several top diplomats will be meeting on Saturday to discuss the situation, according toBloomberg .

Sanctions on Iran is kicking in later this week – as we mentioned yesterday, the boosted production from Saudi Arabia will be enough to cope with the additional missing oil.

Better-than-expected key numbers from the US - pending home sales (5.9% in May versus 5.5% in April) and durable goods orders increased according to numbers published yesterday - indicating that the economic situation in the US is on the right track.

Recommendation

A lot of volatility is scheduled ahead and markets are awaiting the outcome of the EU summit today and tomorrow. In a long-term perspective and given Saudi Arabia's "target level" of $100 we see the current levels as favourable from a consumer point of view.