---

Technical indicators: Neutral to bearish

Oil prices easing during electronic trading due to rising dollar. Conditioned by the american holiday and missing economic data analysts expect a quiet trade for today.

Disappointing US unemployment figures and the ongoing oil worker's strike at Fos Lavera oil port in France helped oil prices up during the session in New York.

The OPEC meets in Vienna this Thursday for the first time in seven months. Robust oil prices might induce OPEC to pump more crude, helping to calm a rising market and limit damage to a fragile economy, but the cartel is unlikely to agree a formal change in output

ICE Gasoil October is expected to open 1.75 to 3.25 dollars lower at about 724.25 dollars/ton after settling at 721.75 dollars (official settlement price) Friday night. This was 0.75 dollars above Thursday's settlement. Volume with some 38,600 deals below average.

Oil prices rose within the existing uptrend Friday and are set for more gains today. The Stochastic indicator gives neutral signals, while the RSI is still in overbought territory. First WTI crude support line seen at 81.00 dollars today, first resistance line at 84.45 dollars.

U.S.

Nymex Access : Oil futures are rising for a second straight session in Asian trading hours and NYMEX electronic trading this morning, WTI crude topping 83.00 dollars for a barrel as the dollar weakens against the euro. No news in the markets. The traded volume is above average, despite today's US holiday.

Houston (ex-wharf indications 9-10)

380cst: $473
180cst: $493
MGO: $743

Very tight avails for 180cst

New Orleans (ex-wharf indications 9-10)

380cst: $475
180cst: $496
MGO: $747

Singapore (correct as of 1430hrs local time)

Crude is bouncing back up with WTI +$1.76. Singapore paper is recorrecting as well with 180cst +$5.50 and 380cst +$6.00 for Oct, and Nov 180 cst +$5.45 and 380cst +$6.30 with MGO Oct contracts +$1.42 and for Nov at +$1.47. The cargo market is reacting to last weeks sell off with 180cst -$13.61, 380cst -$13.56 and MGO -$2.45.

The Singapore fuel oil market fell more than $13.0 tracking the weaker crude. Crude came off further after the window which prompted more bunker demand softening the delivered premiums to only more than $0.5 above cargo prices.

High premiums for prompt deliveries:

380cst: $471
180cst: $480
MGO: $710

Fujairah (delivered indications 11/10)

380cst: $475
180cst: $490
MGO: $739

Rotterdam

Last Friday (Only barge trade deals of >2 KT reported) 48KT was traded in the MOC between 459.00-460.50 with Litasco and Koch as the main sellers to Gunvor and Petroned as the main buyers.

Bullish crude movements despite the build in US stocks added to the relatively weak avails is keeping the HSFO markets firm. The East bound arbitrage seems to reach workable levels again, also underpinning the local markets. Two VLCC's are reported to be fixed for October loading one for Vitol's accounts, the other for RWE. Consequently healthy buying interest is being shown especially for bunker spec. THe market structure remains still though with Oct / Nov contango spread assessed at minus $1.75/mt, $0.25 weaker. The Fos Lavera strike situation is tightening things in the Med with the North-Med differential swap narrowing $3 on the day with demand strengthening in especially Gibraltar and Malta. Product length in the LSFO markets with the inbound US cargoes is weighing things down thereby exacerbating the cargo / barge differential.

380cst: $462
(1.0%): $481
180cst: $477
(1.0%): $498
DMB: N/A
MGO 0.1%S: $725