| Rotterdam (ARA) fuel oil | Singapore fuel oil | US Gulf | | Trading USD 3 lower | Trading 2 higher | Expected to open USD 1 higher |
China data will support todayConsumer and producer inflation came out higher than expected at 2.7% and 5.4% respectively along with both money supply and new loans. Higher inflation is the effect of monetary stimuli, which will support oil prices. Even though retail sales came out slightly lower than expected, it increased along with industrial output from the month before.
Oil data supported oil prices
US oil inventory data, reported by the EIA, came out lower than expected. Furthermore, a large increase in crude oil inventories, signalled by API Tuesday, was not repeated. Oil product demand was reported up 3.8% higher than same period last year. Oil increased initially but failed to break upwards trough key resistance levels.
Release: EIA oil data (Consensus)
Crude: 1,400,000 barrels (1,900,000)
Distillates: -2,200,000 barrels (-900,000)
Gasoline: -2,900,000 barrels (200,000)
Refinery utilization: -1.2% (+0.2%)
Recommendation
Prices have only increased 30 cents on the Chinese numbers - we could see further increases during the day. We still keep our buying recommendation.
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