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Crude oil prices held onto overnight gain in Asia this morning with U.S. industry estimates on stockpiles ahead.

Traders in London and New York had to weigh several new bullish and bearish factors on Monday morning. Whilst the sharp decline in the number of active US oil rigs and Russia's readiness to hold talks with OPEC supported prices, news on Saudi Arabia having cut its prices for November deliveries and Russia having raised its oil output kept a lid on gains. Eventually, the bullish components prevailed, the more so as investors covered some of their short-positions. Oil prices at ICE and NYMEX thus already surged in the first half of the day. The euro gained some ground in the morning as well. Brent and Gasoil breached their resistances at 49.00 USD and 467.00 USD, respectively, in late-afternoon trade. Reports on bottlenecks in product supplies in the Mid-West of the USA bolstered the product futures. Moreover, the Stochastic indicator exceeded 50% at ICE and NYMEX charts, favouring technical buying. Oil futures eventually ended the day with considerable gains even though they have pulled back from their highs overnight.

ICE Gasoil contract for October delivery settled at 474.00 USD on Monday, this is +21.75 USD above Friday's settlement. With some 42,700 deals the traded volume (front month) was below average.

Although the lines of the Stochastic indicator haven't crossed, the indicator has exceeded 50% at ICE as well as at NYMEX charts. Consequently, the indicator is slightly bullish. However, this doesn't provide strong cues. Besides, oil futures have spent most of the upward potential within their lateral trends during Monday's rise. The bullish impact of the indicator has thus largely waned already. That is why we assess the technical constellation as rather neutral even though the Stochastic indicator slightly fosters oil futures. Buying pressure is only likely to significantly increase if oil futures surpass their lateral trends.

U.S.

Nymex above average : Oil futures are currently trading in a narrow range below Monday's highs. The traded volume at NYMEX is slightly below average this morning. Market players are now waiting for the European financial and forex markets to open and for the release of the economic indicators which are due today. Moreover, the API's data on US petroleum stocks is due at 10.30 p.m. The data will be available on our website on Wednesday morning.

Houston (ex-wharf indications 6-10)
380cst $227
180cst $275
MGO $492

New Orleans (ex-wharf indications 6-10)
380cst $238
180cst $294
MGO $477

Singapore (delivered indications 6-10)

Brent is gaining with +$0.41. Singapore paper gaining with +$2.25 for 180cst with +$1.80 for 380cst for Oct, and for Nov 180 cst +$2.25 and 380cst with +$1.80 with MGO contracts Oct climbing with +$0.44 and in Nov with +$0.41. The cargo market is gaining with 180cst +$2.25, 380cst with +$1.80 and MGO with +$0.41.

380cst $233
180cst $251
MGO $446

Fujairah (delivered indications 6-10)

380cst $244
180cst $264
MGO $610

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $238
MGO 0.1%S: $443