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Global oil prices fell to about $113 a barrel on Tuesday after a Russian proposal to avert a U.S. strike on Syria appeared to gather steam, easing investor concerns that another Middle East conflict would further disrupt fuel supplies. But upbeat Chinese data raised expectations of a rebound in demand from the world's No. 2 oil consumer, helping Brent crude recover from session lows. Brent oil for October delivery was down 30 cents above $113 per barrel, after touching a session low of $112.61, its weakest since Sept. 2. US Crude fell by nearly $1 to under $109 a barrel, after dipping as low as $108.20. Brent hit its session low after Russia offered to help put Syria's chemical weapons under international control and U.S. President Barack Obama said he saw a possible breakthrough in the crisis.

During morning trade on Monday, oil futures had been consolidating near Friday's settlement price before ICE contracts breached first supports towards noon. They were weighed down by investors' growing hopes that President Obama might not get the necessary majority in Congress for a military intervention in Syria. Moreover, Russia assured the USA of supporting efforts to put pressure on the Assad regime to cede its chemical weaponry. As a result, traders liquidated spread bets with long positions in Brent and short positions in WTI. After the first support had been breached, more and more technical selling orders accelerated the downturn as the RSI had fallen below the 70%-line and the Stochastic had also given off a bearish signal to the market. In the further course of Monday's session, all indicated supports were breached. Brent incurred its biggest daily loss since June 20. Since the Syria crisis does not affect WTI as much as its European counterpart, the American crude held relatively steady, trading sideways after the first support had been breached. Adding to this was the rather disappointing job market data released on Friday. The official monthly statistics have raised doubts that the Fed really is going to start tapering off its bond buying programme this month. This was chiefly bullish for WTI. However, the U.S. crude benchmark eventually also retreated and consequently, all futures closed with considerable losses.

ICE Gasoil contract for September delivery settled at 960.00 USD on Monday. This was 11.00 USD below Friday's settlement. With some 40,300, deals the traded volume was below average.

This morning, the stochastic indicator has given off a selling signal for ICE futures and WTI after its both lines changed direction yesterday and then crossed this morning. The RSI has already slipped below the 30%-line at the G.Oil chart, hinting at a slightly oversold market situation. However, there still is more downward potential at the oil market which is why we consider the technical constellation as bearish today. But the fundamental situation is likely to eclipse the technical factors again.

U.S.

Nymex bearish: In early Asian trading this morning, oil futures are moving sideways in a narrow range, displaying, however, a tendency for profit-taking. The traded volume at NYMEX is far higher than average for this time of day. Market players are now eying the performance of European markets, new signals from forex trading as well as a few Chinese figures and the Redbook in the USA.

Houston (ex-wharf indications 09-09)
380cst $629
180cst $701
MGO $1028

New Orleans (ex-wharf indications 09-09)
380cst $631
180cst $683
MGO $1030

Singapore

Crude is bearish with WTI -$1.69. Singapore paper is losing -$8.50 for 180cst and -$6.85 for 380cst for Sep, and for Oct 180 cst -$7.25 and 380cst -$7.50 with MGO contracts Sep -$1.65 and Oct -$1.66. The cargo market is up with 180cst +$1.38, 380cst +$2.78 and MGO +$0.28.

The Singapore fuel oil markets fell more than $3.0 during the Asian Platts window yesterday. The delivered bunker premiums were between flat to +$2.0 above cargo prices amidst a quiet start of the week. This morning both markets are trading down.

380cst $600
180cst $605
MGO $930

Fujairah (delivered indications 10-09)

380cst $601
180cst $660
MGO $995

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 : $593
(1.0 %) :$625
180cst: $627
(1.0 %):$ 655
MGO 0.1%S: $ 925