---

Crude oil prices eased ahead of industry data on U.S. stocks and as a weak demand profile against ample supplies continued to weigh.

Oil futures at ICE and NYMEX traded lower in Asian trading on Monday, penalised by the publication over the weekend of disappointing Chinese indicators. Several support lines were breached, the Brent hitting a fresh 2-year low at 96.21 dollars in the process. The news of a rise to 870.000 b/d of Libyan oil production, increasing oil supplies in an already oversupplied market, also weighed on prices. The release of worse-than-expected U.S. indicators had no immediate impact on the oil market but the subsequent drop of the dollar tempted traders to cover some of their short positions, the more as Brent failed to breach its 96.20 dollar support despite several attempts to do so. In the absence of fresh directive news movements stayed limited. After the opening of the session in New York oil prices recovered from their losses but consolidated their gains at a low level within the existing downtrends.

ICE Gasoil contract for October delivery settled at 831.50 USD on Monday, this is 0.75 USD below Friday's settlement. With some 55,900 deals the traded volume (front month) was about on average.

The two lines of the Stochastic coincide at the gasoil chart and are converging for the WTI, making the indicator neutral. Even though the indicator's lines have formally crossed at the Brent chart no buying signal has been triggered yet. The RSI is still well at the oversold level below the 30 line, not giving any signals at all. Should the lines of the Stochastic, however, cross at the ICE charts a bullish signal will be triggered that would be amplified by the oversold market condition. In this case, even though the downtrends are still intact the upper limits of the very steep short-term trends could be tested. We nevertheless consider the actual technical constellation as neutral this morning.

U.S.

Nymex on avarage: Oil futures traded in a narrow range on a low level in Asia but dropped abruptly during Globex electronic trade this morning at the ICE, breaching the first support lines while the WTI at the NYMEX still hesitates. The traded volume at NYMEX is about on average for this time of day. Market players will eye the development at stock and forex markets today as well as the release of the API's report on U.S. petroleum stocks tonight at 10.30 p.m. They will also keep their focus on the situation in the Ukraine, Iraq and Libya and on today's economic indicators.

Houston (ex-wharf indications 16-9)
380cst $559
180cst $667
MGO $939

New Orleans (ex-wharf indications 16-9)
380cst $566
180cst $652
MGO $936

Singapore (delivered indications 16-9)

WTI is gaining with +$1.16 Singapore paper is down with -$0.65 for 180cst with -$1.25 for 380cst for Oct, and for Nov 180 cst -$0.40 and 380cst with -$1.00 with MGO contracts Oct losing with -$0.12 and in Nov with -$0.13. The cargo market is losing with 180cst -$10.16, 380cst with -$10.79 and MGO gaining with -$1.47.

On the other hand, the Singapore fuel oil prices fell more than -$10.0 during the Asian Platts window yesterday tracking a weaker crude. The delivered bunker premiums rose to around +$12.0 above cargo prices on stronger demand and sellers’ reluctance to sell lower.

380cst $567
180cst $578
MGO $822

Fujairah (delivered indications 16-9)

380cst $595
180cst $630
MGO $980

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 %) : $551
MGO 0.1%S: $803