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Crude oil prices fell sharply in Asia on this morning with the drop spurred by weak demand amid ample global supplies. Brent oil futures traded near the lowest level in almost two years this morning, amid speculation weakening economic growth in China will reduce demand for the commodity.

Oil prices opened higher in electronic morning trading on Friday, extending Thursday's gains and breaching some resistance lines in a market supported by technically driven buying signals. Geopolitical risks added to the slightly bullish sentiment, tempting traders to cover some short positions ahead of the weekend. In the afternoon the bearish fundamentals such as fresh sanctions against Russia, took over. Market participants fear a negative effect of the sanctions on economic growth and thus on oil demand. In the course of the session in New York oil prices fell through several support lines, finishing considerably lower in London and New York, Oil prices extended their losses in early morning weighed down by a string of disappointing Chinese indicators released over the weekend and sending Brent to a fresh 2-year low.

ICE Gasoil contract for October delivery settled at 832.25 USD on Friday, this is -0.75 USD below Thursday's settlement. With some 70,900 deals the traded volume (front month) was well above average.

The two lines of the Stochastic indicator have meanwhile converged at the ICE charts and are approaching each other at the WTI chart. The indicator is thus neutral this morning, Friday's buying signals having been totally absorbed. As for the RSI, it is at the oversold level below the 30 line, not giving any fresh signals yet. Should the RSI at the Brent and/or the G.Oil chart breach the 30 line it turns bullish. The Stochastic, however, could give a bearish signal should its two lines cross. We therefore consider the technical constellation as neutral this morning while the long-term trend channels stay intact.

U.S.

Nymex above avarage: Oil futures traded in a narrow range on a low level in Asian trading and Globex electronic trade this morning, the release over the weekend of little encouraging Chinese economic data preventing a rise above resistance lines. The traded volume at NYMEX is far above average for this time of day. Market players will eye the development at stock and forex markets. They will also keep their focus on the situation in the Ukraine, Iraq and Libya and on today's economic indicators in the euro zone and the U.S.

Houston (ex-wharf indications 15-9)
380cst $563
180cst $661
MGO $940

New Orleans (ex-wharf indications 15-9)
380cst $569
180cst $662
MGO $939

Singapore (delivered indications 15-9)

WTI is losing with -$1.88 Singapore paper is down with -$9.60 for 180cst with -$10.25 for 380cst for Sep, and for Oct 180 cst -$9.10 and 380cst with -$9.25 with MGO contracts Sep losing with -$1.50 and in Oct with -$1.52. The cargo market is losing with 180cst -$0.51, 380cst with -$24 and MGO gaining with +$0.92.

The Singapore fuel oil prices softened slightly assessed app. -$2.0 down during the Platts window. The latest Singapore heavy residual inventory saw a slight build of 0.52 mbbl to 17.90 mbbl. The delivered bunker premiums were ranging between +$9.0 to +$11.0 above cargo prices.

380cst $572
180cst $582
MGO $825

Fujairah (delivered indications 15-9)

380cst $600
180cst $632
MGO $981

ARA (Amsterdam - Rotterdam - Antwerp)

Please be advised we have decided to dispense with 180cst RME180 indications either for HS or LS as part of our daily report for Rotterdam to clients. The reason being prices are so dependent on volume and dates that putting a figure to it is highly counter-productive and serves only to give false expectations to the customer. Avails are so limited these days and also premiums are charged for smaller quantities (due to the size of the tank required to be reserved for the blend) that it can really effect prices.

Indications for delivered bunkers:
380cst : $541
(1.0 %) : $560
MGO 0.1%S: $802