---

Crude oil futures decline on Tuesday, as Monday's disappointing manufacturing data from China and the euro zone continued to weigh while tensions between Russia and Ukraine remained on focus.

Futures at ICE already showed a softer tendency on Monday morning. On Friday, prices were still buoyed by the fact that investors raised their strategic long positions cutting their short positions at the same time in order to hedge the risk of another escalation in Ukraine over the weekend. Since the situation in the country didn't considerably change, traders took some profits from their long-positions on Monday morning and so quotations ticked lower at the beginning of the European session. Disappointing data ouf of China and the Eurozone also weighed on oil markets even though investors avoided to large transactions as US traders were absent due to the Labor Day holiday. That is why the supports at 864.75 USD Gasoil and 102.85 USD Brent limited losses at ICE at first. Even though there were no new cues in the afternoon, the trend of taking profits continued and so oil futures renewedly tended to the downside in the course of the day. Futures at ICE thus hit new lows in the evening settling near these levels as well. Given the US holiday, WTI showed far less moves than futures at ICE. The US crude oil contract finally settled nearly unchanged, with the trading volumes at ICE and NYMEX having stayed far below average in a session that closed early.

ICE Gasoil contract for September delivery settled at 863.50 USD on Monday, this is -1.25 USD below Friday's settlement. With some 24,700 deals the traded volume (front month) was below average.

The lines of the stochastic indicator have met again at the Brent chart and so the indicator has turned neutral after having given a bullish signal yesterday. At the Gasoil chart, the bearish signal has waned, too, as the lines of the indicator aren't drifting further apart. The RSI slipped below 70% at the Gasoil chart adding to selling pressure. At the WTI chart, neither the RSI nor the stochastic indicator are giving any fresh selling cues. We assess the technical constellation as neutral to bearish this morningas the RSI is still slightly bearish at the Gasoil chart favoring tests of the downside. Moreover, Brent has breached a support that had remained strong over the past few weeks generating more downward potential. If the lines of the stochastic indicator cross at the Brent and the WTI chart and if the RSI drops below 70% at the WTI chart, the bearish component would get even stronger favoring more technical profit taking.

U.S.

Nymex above avarage: After having hit news lows on Monday evening, oil futures saw a slight upward correction early this morning in Asian and electronic trading. The changes remained relatively unnoticeable, however. The traded volume at NYMEX is far above average for this time of day as orders that were placed after the early close yesterday were only effectuated this morning. Investors are now monitoring the development at stock and forex markets. They will also keep a close eye on the situation in Ukraine, Iraq and Libya and today's economic indicators.

Houston (ex-wharf indications 2-9)
380cst $580
180cst $659
MGO $965

New Orleans (ex-wharf indications 2-9)
380cst $585
180cst $668
MGO $960

Singapore (delivered indications 2-9)

WTI is gaining with +$0.02 Singapore paper is down with -$6.80 for 180cst and -$6.25 for 380cst for Sep, and for Oct 180 cst -$5.90 and 380cst with -$5.50 with MGO contracts Sep losing with -$0.47 and in Oct with -$0.48. The cargo market is gaining with 180cst +$0.63, 380cst losing with -$0.32 and MGO with -$0.05.

The Singapore fuel oil prices were trading around parity during the Asian Platts window. The market remained firm fundamentally as premiums persist strong. The delivered bunker premiums were seen around +$8.0 to +$9.0 above cargo prices.

380cst $589
180cst $602
MGO $869

Fujairah (delivered indications 2-9)

380cst $608
180cst $638
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $561
(1.0 %) : $572
180cst: $591
MGO 0.1%S: $828