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Oil prices eased this morning with market participants eyeing the 2 day FED meeting starting today, anticipating a possible start of the long expected tapering, possibly in February 2014.

ICE Gasoil contract for January delivery settled at 931.50 USD on Monday. This was +13.75 USD above Friday's settlement. With some 75,500 deals, the traded volume was above average.

Oil markets showed a steady tendency on Monday morning as oil terminals in the east of Libya didn't resume exports on Sunday unlike it had been announced last week. The announcement that two French refineries operated by oil major Total would be shut down due to a strike of oil workers brought some additional momentum. Investors feared that the losses in refinery output might lead to bottlenecks as the winter demand is taking up pace. The buying signal the stochastic indicator had given at the Brent chart was thus confirmed at the Gasoil chart as well in the course of the morning and so technical buying orders increased, too. Particularly futures at ICE rallied breaching several resistances. This frequently lead to price increases yesterday. Late in the evening, investors took some profits at ICE. On the one hand, they renewedly expected bullish data on US crude oil inventories and bearish figures for product stocks. On the other hand, the majority of oil workers at the Total refineries in France has accepted an offer provided by the management. Even though it is still unclear how long it will take until all of the workers end the strike and refineries at Gonfreville et La Mede resume production, the rally at ICE was capped yesterday evening and futures shed most of their gains. WTI remained strong instead settling with considerable gains.

With its lines having crossed, the stochastic indicator at the Gasoil chart yesterday confirmed the buying signal it had given at the Brent chart before. Moreover, the RSI has climbed above the 30%-line at the Brent chart. The lines of the stochastic indicator have also crossed at the WTI chart leading to a bullish constellation. The technical indicators give buying cues altogether, which is why we assess the technical constellation as bullish this morning. Still, yesterday afternoon and evening investors investors already took some profits from Brent and product futures. This indicates that the buying signals that were generated at ICE charts have in part already been spent. Moreover, market players more and more focus on the fundamental situation, with US oil inventories due and the strikes at French refineries not completely settled yet.

U.S.

Nymex bearish: After the profit taking oil markets saw yesterday evening, futures have just edged higher. However, there haven't been any decisive cues, yet. The traded NYMEX volume is far below average for this time of day. Investors are now looking ahead to the development at European stock and forex markets in order to receive new cues. Moreover, they will keep an eye on the economic indicators due today.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Thursday at 17:00(DOE)

Crude oil -3.3; distillates +0.2; gasoline +1.8 million barrels vs previous week

Houston (ex-wharf indications 16-12)
380cst $598
180cst $670
MGO $999

New Orleans (ex-wharf indications 16-12)
380cst $618
180cst $654
MGO $1004

Singapore

WTI is up slightly with +$0.60. Singapore paper is mixed with -$0.50 for 180cst and -$0.50 for 380cst for Dec, and for Jan 180 cst +$0.25 and 380cst +$0.50 with MGO contracts Dec +$0.39 and Jan +$0.44. The cargo market is looking for direction as well with 180 cst -$0.56, 380cst +$0.52 and MGO +$0.94.

The Singapore fuel oil markets rose more than $5.5 during the Asian Platts window yesterday. The delivered bunker premiums softened to range around +$4.0 to +$5.0 above cargo prices. Bunker demand is said to be slow and continues to weigh down the market. This morning both markets are trading down.

380cst $607
180cst $614
MGO $930

ARA (Amsterdam - Rotterdam - Antwerp)

Still a lot of lsfo problems in ARA. No loading prospects in Antwerp. At the moment suppliers are only offering from end of this week onwards.

Indications for delivered bunkers:
380cst : $585
(1.0 %) : $627
180cst: $617
MGO 0.1%S: $ 905