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At the start of European trade, oil futures in London and New York climbed above their first resistances, spurred by surging stock markets. Speculation over Ben Bernanke’s succession as Fed chairman promoted considerable gains at the opening of European markets. The former frontrunner Lawrence Summer has withdrawn his candidacy. If now the current vice-president, Janet Yellen, takes on Bernanke’s office, many expect the extremely loose monetary policy to continue. This hope for continuous monetary stimulus has pushed the DAX to a new record high this morning and also pushed oil markets up. Oil futures at ICE and NYMEX had already breached their first supports during morning trade Friday because investors were increasingly counting on a diplomatic solution to the Syrian conflict and thus, increasingly reduced the risk premium. The slightly stronger euro vs. the dollar as well as the solid supports at 107.30 USD (WTI) and at 111.60 USD (Brent) then helped oil prices to correct upwards before disappointing U.S. indicators pushed them back down to their day's lows. In further trading, oil markets recovered again thanks to the positive sentiment at U.S. stock markets and not least because Brent's front month October was about to expire in the evening. However, gains remained limited since market participants rather wanted to be on the safe side ahead of the Fed meeting that starts tomorrow. In the end, oil prices in London and New York settled close to their opening level, with WTI suffering the biggest weekly loss since July.

ICE Gasoil contract for October delivery settled at 949.75 USD on Friday. This was 1.75 USD below Thursday's settlement. With some 74,700, deals the traded volume was above average.

The Stochastic's lines may have crossed at the WTI chart by now and thus the indicator has given off a buying signal, but its lines are already converging again. For ICE futures, the stochastic oscillator is still slightly bullish whereas the RSI remains in overbought territory at all charts. After several important supports were breached on Friday, we consider the technical constellation as neutral this morning.

U.S.

Nymex losing: After the sharp decline last night, oil prices have slightly recovered in Asian trading this morning, displaying a soft tendency, however. The traded volume at NYMEX is far 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. As the long-awaited FOMC meeting is going to start tomorrow, it will already affect today's session and may cause a great deal of volatility in view of the great uncertainty on how the Fed will proceed with its bond buying programme.

Houston (ex-wharf indications 13-09)
380cst $623
180cst $694
MGO $1024

New Orleans (ex-wharf indications 13-09)
380cst $621
180cst $674
MGO $1026

Singapore

Crude is losing with WTI -$0.74. Singapore paper is slowing, but not yet turning with +$0.90 for 180cst and +$0.15 for 380cst for Oct, and for Nov 180 cst +$0.40 and 380cst +$0.15 with MGO contracts Sep +$0.18 and Oct +$0.05. The cargo market is more bearish with 180cst -$3.70, 380cst -$2.76 and MGO +0.06.

The Singapore fuel oil markets rose app. $3.5/mt during the Asian Platts window last Friday. There were no significant changes to the market fundamentals where supplies continued to be ample with a fragile demand. This was despite a rebound in Asian Fuel Oil cracks. The delivered bunker premiums were around $2.0 above cargo prices last Friday. This morning markets are trading down.

380cst $607
180cst $615
MGO $930

Fujairah (delivered indications 16-09)

380cst $608
180cst $670
MGO $1000

ARA (Amsterdam - Rotterdam - Antwerp)

Loading problems for lsfo are still holding on. Expect to go better by the end of this 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 : $590
(1.0 %) :$620
180cst: $620
(1.0 %):$ 651
MGO 0.1%S: $ 922