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Oil futures at ICE tested their first support this morning, but like yesterday, they have already returned from their day’s lows. Brent’s short-term support at 106.90 USD limited the downturn and WTI’s strong support at 103.50 USD held steady against the selling pressure. In addition, the stronger euro pushed oil markets up. Oil markets started rather flat this week. After reaching their day’s lows early on, oil prices quickly recovered again, breaching several resistances. However, investors remained rather cautious ahead of the released of the FOMC meeting on Wednesday and a number of important U.S. indicators to be released in the course of the week. In the wake of the declining dollar, oil futures then returned from their day’s highs after bouncing off their resistances at 917.50 USD (G.Oil), 107.80 USD (Brent) and at 105.40 USD (WTI) and continued to trade largely within their technical range, lacking direction for the rest of the day. In the end, oil prices at ICE and NYMEX settled around their opening level.

ICE Gasoil contract for August delivery settled at 913.75 USD on Monday. This was 3.25 USD above Friday's settlement. With some 31,000 deals the traded volume was far below average.

The technical constellation does also not display any fresh signals this morning. As expected, oil futures have stayed within their short-term downtrend since the Stochastic has still not given off any new signals yet. At the Brent chart, a technical triangle has formed. The direction in which oil markets escape their downward trend channel will be decisive for future price development. The RSI still is neutral. Consequently, as guiding signals are lacking, we still consider the technical constellation as neutral but expect oil markets to trade within their short-term downtrend.

U.S.

Nymex neutral: Oil futures started little changed in early Asian trading this morning. Traders do not want to take any risks prior to the FOMC meeting on Wednesday.The traded volume at NYMEX is below average for this time of day. Market players are now eying the performance of European markets, new clues from forex trading as well as for a series of economic data out of the EU and the USA.

Houston (ex-wharf indications 29-07 )
380cst $591
180cst $674
MGO $1004

New Orleans (ex-wharf indications 29-07)
380cst $592
180cst $638
MGO $1006

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is slowing, losing with -$0.13. The paper market is bouncing up with Aug 180cst +$4.25 and for 380cst +$3.75, and Sept contracts with 180cst +$3.75, 380st +$3.75. The cargo market is looking for direction with 180cst -$0.41, and 380cst +$0.50 and MGO -$0.46.

The Singapore fuel oil markets were mostly flat with minimal changes around parity, ranging between -$0.5 to +$0.50 on the Platts window yesterday. There are no significant changes to the fundamentals in Singapore. This morning the markets were trading lower.

380cst $599
180cst $602
MGO $905

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $599
(1.0 %) :$608
180cst: $628
(1.0 %):$ 637
MGO 0.1%S: $ 890