Despite lower OPEC production, Brent Crude oil price softens further by 13.8% MoM to average US$56.5/bbl in Dec'18 on the back of rising concern on oil demand growth. OPEC production declined 1.5% MoM to 32.6mbpd mainly led by lower production from Iran, Libya and Saudi Arabia. OPEC and other large oil producers including Russia agreed in Dec'18 to cut their crude output by ~1.2+mbpd from Jan'19 to halt a decline in oil prices. From January onwards, we expect OPEC production to come down led by Saudi Arabia which may support oil prices in near term. Non-OPEC production remained almost flattish MoM to 60mbpd for the month of Nov'18. US Crude oil inventory remained flattish at 441mn bbls for the month of Dec'18. Singapore Gross Refining margin (GRM) declined to 9-year low in Dec'18 to average US$2.9/bbl from US$4.7/bbl in Nov'18 owing to significant decline in crack spreads in gasoline, gasoil and Jet Kero. US refinery utilization improved by 2.6% MoM to average 95.2% in the month of Dec'18. Arab Light-Arab Heavy differential declined further by 21% MoM to US$1.9/bbl whereas INR appreciated by 1.5% MoM to Rs70.7/US$ in the month of Dec'18....