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Crude oil eased by 91 cents today to trade at 102.94 while Brent oil dipped to 108.60 down by 86 cents as traders begin to worry about the effects of the ongoing US shutdown will have on the US economy. The lack of US governmental data is weighing heavily on decisions of traders. The EIA says that they have enough funding to release this week’s inventory but not after that. WTI crude slipped lower in the early session as production resumed in the Gulf of Mexico region amid weakening of tropical storm ‘Karen’.

On New York Mercantile Exchange, WTI crude futures for near month delivery are trading at $102.94 per barrel. However, irrespective of a negative Chinese outlook by the World Bank. For the week as a whole, WTI oil faced high volatility with prices continuously trading higher and lower amongst a number of economic, political and commodity specific events during the period under review Oil markets in London and New York started stronger on Friday as numerous oil plants in the South of the USA and the Gulf of Mexico had been shut down due to hurricane warnings. This particularly propped up crude futures which received additional support from the slightly bullish technical constellation. In the afternoon, profit-taking dominated distillate and gasoline trading because the influence of tropical storm Karen was not as big on product supplies as on the availability of crude oil. In the end, Karen was weakening over the weekend and off-shore drilling could already be resumed again. That said, other guiding signals were lacking since the government shutdown in the USA is delaying the release of important economic data such as the official job market statistic for September. While crude contracts WTI and Brent eventually closed with gains, ICE G.Oil slid into the red after investors had taken profits in late trade.

Tropical strom Karen had weakend Friday to Saturaday before hitting mainland. As a precaution, about 50% (0.6 mbpd) of U.S. crude production in the Gulf of Mexcio had been halted. Karen has blown over by now and no considerable damages at oil rigs or refineries have been reported so far. The operating companies of the offshore oil platforms have already resumed drilling. "Chevron is returning its staff to the drilling platforms in the Gulf of Mexico in order to restore normal production.

ICE Gasoil contract for October delivery settled at 922.50 USD on Friday. This was 4.00 USD below Friday's settlement. With some 39,500 deals, the traded volume was below average.

After the Stochastc had given off a buying signal at ICE and NYMEX charts last week, the indicators has turned neutral again as its both lines have converged. Moreover, the RSI is also not expected to provide any fresh signals this morning as it is moving in neutral territory between the 30% and 70%-line. Consequently, we consider the technical constellation as neutral to bearish today.

U.S.

Nymex neutral: Oil futures have been trading at Friday's closing level this morning. But market sentiment has become rather bearish again after tropical storm Karen has eased and merely caused minor disruptions along the Gulf Coast and no damages at oil plants. The traded volume at NYMEX is below average for this time of day. Market players are now waiting for the European markets to open and for new signals from forex trading. The euro zone BIP is the only indicators on the agenda today.

Houston (ex-wharf indications 04-10)
380cst $611
180cst $668
MGO $990

New Orleans (ex-wharf indications 04-10)
380cst $612
180cst $658
MGO $995

Singapore

Crude is turning bearish with WTI -$0.95. Singapore paper is bearish too with -$6.75 for 180cst and -$6.75 for 380cst for Oct, and for Nov 180 cst -$6.75 and 380cst -$7.20 with MGO contracts Oct -$0.90 and Nov -$0.85. The cargo market is turning bearish with 180cst -$6.70, 380cst -$5.72 and MGO -0.04.

The Singapore fuel oil markets fell more than $6.0 during the Asian Platts window last Friday. The Asian fuel oil cracks weakened as strong selling interests were seen; an opposite of the previous strength. The latest Singapore heavy residual inventory reported a slight build of +0.19 mbbl to 21.98 mbbl. The delivered bunker premiums fluctuated, ranging from $2.0 to $6.5 above cargo prices. This morning markets are trading down.

380cst $606
180cst $608
MGO $910

Fujairah (delivered indications 07-10)

380cst $607
180cst $664
MGO $980

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. KPC, an other hsfo refinery in Rotterdam is out on maintenace for 4 months. Waiting times are noted for over 1 week at some storages.

Indications for delivered bunkers:
380cst : $581
(1.0 %) :$600
180cst: $616
(1.0 %):$ 630
MGO 0.1%S: $ 898