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Oil prices fell further from 28-month highs on Monday as weak US jobs data helped to offset fears of Middle East supply disruptions caused by a possible US-led military strike against Syria. Brent North Sea crude for delivery in October shed $1.09 to stand at $115.03 a barrel in London early afternoon deals. New York's main contract, West Texas Intermediate (WTI) for October, fell 63 cents at $109.90 a barrel.

On Friday morning, oil markets in London and New York showed a stronger tendency, supported by the situation in Syria. The G20 summit had brought back the issue to the center of market attention. However, it soon became obvious that no agreement would be reached. Especially the mood between the USA and Russia reached a new low. In the afternoon, the USA then released its monthly job market statistics. Although these came out rather mixed, they were generally worse than expected. This caused the dollar to lose ground and propped up oil prices in turn. Adding to the bullish potential was the North Sea crude embarkment programme which is expected to decline next month. Thus oil futures maintained their firm tendency and settled with clear gain.

In August, China imported about 5.07 mbpd of crude. This is an increase of 16.5% on the year. Compared to July, crude imports dropped by around 17.9%. In total, China's crude demand grew by 2.9% from January to August on-year.

ICE Gasoil contract for September delivery settled at 971.00 USD on Friday. This was 7.25 USD above Thursday's settlement. With some 37,300, deals the traded volume was above average.

The Stochastic's lines have crossed at the G.Oil chart, giving off a buying signal. The indicators still is slightly bullish for Brent and WTI although the buying signal already dates a few days back. The RSI has slipped below the 70%-line, both at the G.Oil and at the Brent chart, providing a selling signal. In view of these mixed signals from the RSI and the Stochastic oscillator, we consider the technical constellation as neutral to bearish this morning, not least because the fundamental situation will continue to dominate price development.

U.S.

Nymex neutral: In early trading this morning, oil futures have been consolidating at a high level after rising on Friday. As guiding fundamental news are still lacking, oil markets do not display a clear direction yet today, merely G.Oil has slipped below its first support by now. The traded volume at NYMEX is higher than average for this time of day. Market players are now waiting for European markets to open, for new signals from forex trading and for developments regarding the Middle East. Apart from the Chinese inflation index, there are no economic indicators to be released today.

Houston (ex-wharf indications 06-09)
380cst $630
180cst $703
MGO $1035

New Orleans (ex-wharf indications 06-09)
380cst $633
180cst $685
MGO $1037

Singapore

Crude is bullish with WTI +$1.51. Singapore paper is gaining with +$1.75 for 180cst and +$2.50 for 380cst for Sep, and for Oct 180 cst +$1.30 and 380cst +$1.90 with MGO contracts Sep +$0.28 and Oct +$0.45. The cargo market is bearish with 180cst -$2.99, 380cst -$2.86 and MGO +$0.03.

The Singapore fuel oil markets slipped about $3.0 during the Asian Platts window last Friday. The Singapore heavy residual stockpile saw a build of+1.21 mbbl to 23.44 mbbl. The delivered bunker premiums were around +$1.5 above cargo prices. This morning markets are trading lower.

380cst $606
180cst $614
MGO $940

Fujairah (delivered indications 05-09)

380cst $606
180cst $668
MGO $1005

ARA (Amsterdam - Rotterdam - Antwerp)

In Antwerp a lot of lsfo problems due to loading time at storages of 1 week.

In September (starting week 4) ESSO Antwerp will start working on maintenance of their refinery. Because of this, local Antwerp suppliers will need to buy more product in Rotterdam, therefor long waitinglines at Rotterdam refineries and storage are to be expected, with premiums on price as a result.

Indications for delivered bunkers:
380cst : $602
(1.0 %) :$633
180cst: $632
(1.0 %):$ 663
MGO 0.1%S: $ 945