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Oil futures in London and New York renewedly marked some losses this morning. After a brief technical upward reaction on yesterday's sharp decline, Brent's and WTI's strong first resistances sent prices back down to their supports. The bearish technical constellation also weighed on quotations. Given the signs of an easing of the conflict in Syria and tensions between Iran and the West, market fundamentals are bearish, too. Whilst these factors chiefly put ICE futures under pressure, WTI was weighed down by news on oil production at the Eagle Ford rock formation (Texas) having reached the highest level since May 1981. June production is to have climbed to 2.58 million barrels per day. Therefore, the spread between Brent and WTI has widened to some 4.50 dollars again. Even though exports of US crude oil are prohibited, these news are likely to add to beliefs that the situation of supplies is easing. Still, the decline at oil futures has been limited by the strong supports at 107.65 dollars (Brent) and 103.10 dollars (WTI) for the time being. Prices bounced off these markers. Brent even tested its first resistance once again but it renewedly proved strong. Market participants now eye a raft of important economic data out of the USA, among them the consumer confidence. Moreover, they will closely eye the API's data on US oil inventories. Experts expect a draw in crude oil stocks.

After having consolidated in electronic morning trading, oil futures saw a sell-off yesterday. Futures at ICE and NYMEX already retreated around noon falling below several supports before the open of US floor trading, with the NYMEX gasoline contract taking the lead. Since fears of supply bottlenecks are waning due to the recovery at global markets and as US fuel demand is declining for seasonal reasons, investors cut their long positions. With Libya and Nigeria stepping up production again, the conflict in Syria easing and Iran signalling the will to negotiate, market participants now obviously anticipate an oversupply of crude oil. The dollar regaining some strength against the euro and retreating equities also pressured oil prices. Moreover, the technical constellation was bearish, too. At the ICE charts, the stochastic indicator gave a selling signal which accelerated the decline. Losses were only limited near 108.00 dollars Brent and 103.00 dollars WTI. At ICE, oil futures settled near yesterday's lows whereas WTI hit a seven-week-low. The NYMEX Gasoline contract even settled at its lowest level in 2013.

ICE Gasoil contract for October delivery settled at 913.00 USD on Monday. This was 12.25 USD below Friday's settlement. With some 51,300 deals, the traded volume was on average.

After its lines had crossed at the ICE charts, the stochastic indicator also gave a selling signal for oil futures in London. Therefore, the indicator is bearish at all charts this morning. The RSI is still neutral at ICE as well as at NYMEX charts, see also technical analysis. By falling below 108.00 dollars Brent broke below the lower limit of its long-term uptrend generating yet another bearish signal. Therefore we assess the technical constellation as bearish this morning. However, given yesterday's losses, we expect a slight technical upward correction at first.

U.S.

Nymex neutral: Oil prices traded slightly higher in a very narrow range in Asian trading this morning. After yesterday's sharp decline market players are waiting for new clues. The traded volume at NYMEX is below average for this time of day. Market players are now eying the performance of European markets and new signals from forex trading or today's economic indicators, which are mainly released in the USA today. They will also keep an eye on the UN's General Assembly, particularly on the discourses of US President Obama and the Iranian President Rowhani.

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 23-09)
380cst $615
180cst $682
MGO $1000

New Orleans (ex-wharf indications 23-09)
380cst $612
180cst $652
MGO $1003

Singapore

Crude is losing still with WTI -$1.39. Singapore paper is dropping with -$2.75 for 180cst and -$2.85 for 380cst for Oct, and for Nov 180 cst -$2.85 and 380cst -$2.85 with MGO contracts Oct -$1.10 and Nov -$1.06. The cargo market is mixed with 180cst -$2.00, 380cst -$1.72 and MGO +0.36.

The Singapore fuel oil markets dropped more than -$1.0 during the Asian Platts window yesterday tracking crude movements. The delivered bunker premiums were around +1.0 above cargo prices. Bunker demand was mixed and supply at the moment still looks ample. This morning both markets are trading slightly higher.

380cst $606
180cst $610
MGO $900
Fujairah (delivered indications 24-09)

380cst $607
180cst $665
MGO $970

ARA (Amsterdam - Rotterdam - Antwerp)

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 %) :$614
180cst: $612
(1.0 %):$ 638
MGO 0.1%S: $ 895