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Oil prices have not displayed any noticeable price jumps so far this morning. As the Fed meeting approaches, market players increasingly adopt a wait-and-see mode. Thus, oil futures at ICE and NYMEX have been trading within a narrow technical range. Fundamentally, there have been no signals and economic data also failed to provide a direction. The economic indicators for the euro zone merely helped the euro to advance. The common currency rose above its second resistance since the index showed that the economy is to improve in September.

After briefly moving sideways at the start of the week, oil prices in London and New York climbed up to their second and third resistances Monday morning on speculations that the Fed might maintain a loose monetary policy for longer after Lawrence Summers had withdrawn its candidacy as Fed chairman. But towards noon, oil futures quickly bounced back from the strong resistances at 955.00 USD (G.Oil), at 111.50 USD (Brent) and at 108.00 USD (WTI). Upward potential did also not suffice because the last of the risk premium on Syria had been dissolved, given that the USA, France and Great Britain pushed for a “strong and robust” U.N. resolution to destroy Syria’s chemical weapons. Consequently, oil markets saw a quick and strong decline in prices as technical selling orders were triggered, with ICE contracts falling to new lows. When news came in that Libya had partly resumed oil production, downward pressure increase once more. Oil market development had uncoupled form forex trading by then and WTI eventually slid to a three-week low. Although ICE futures had briefly recovered, they still closed in the red.

ICE Gasoil contract for October delivery settled at 944.25 USD on Monday. This was 5.50 USD below Friday's settlement. With some 88,200 deals the traded volume was below average.

The Stochastic’s lines crossed at the WTI and G.Oil chart yesterday, giving off a selling signal. At the Brent chart, the indicator’s lines are converging and would also deliver a bearish signal if they crossed. The RSI is neutral for all contracts at the moment. Even though the medium-term upward trend channels are still intact, the fact that important supports were breached on Monday and that WTI hit a three-week low rather points to a neutral to bearish evaluation this morning.

U.S.

Nymex losing: In early Asian trading this morning, oil futures are moving sideways within their technical range. In view of the Fed's decision, traders may refrain from taking too great a risk today. 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 for a series of economic data. The FOMC meeting will likely be the centre of interest today.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Thursday at 17:00(DOE)
Crude oil -1.5; distillates +1.0; gasoline +/- 0.0 million barrels vs previous week

Houston (ex-wharf indications 16-09)
380cst $613
180cst $678
MGO $1020

New Orleans (ex-wharf indications 16-09)
380cst $615
180cst $658
MGO $1020

Singapore

Crude is dropping with WTI -$1.67. Singapore paper is starting to turn, losing with -$3.00 for 180cst and -$2.40 for 380cst for Oct, and for Nov 180 cst -$3.40 and 380cst -$2.60 with MGO contracts Sep -$1.55 and Oct -$1.46. The cargo market is losing still with 180cst -$3.27, 380cst -$3.25 and MGO -0.12.

The Singapore fuel oil markets rose marginally between flat to +$2.5 during the morning Platts window yesterday. The delivered bunker premiums slipped to negative to parity between -$1.5 to +$0.5 above cargo prices as crude softened significantly after the window. This morning the markets are trading slightly higher.

380cst $605
180cst $613
MGO $920

Fujairah (delivered indications 17-09)

380cst $606
180cst $668
MGO $990

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 : $591
(1.0 %) :$621
180cst: $622
(1.0 %):$ 653
MGO 0.1%S: $ 920