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Technical indicators: neutral to bearish

As equity markets kept falling during morning trade, oil futures shed most of their earlier gains after WTI crude resistance at 81.30 dollars proved strong.

Yesterday, oil prices were headed for their biggest two-day plunge in more than two years during the session in New York as the U.S. credit- rating cut and rising stockpiles stoked concern the global economic slowdown will worsen, reducing demand in the world’s biggest energy consumer and worldwide. Brent crude even tumbled below 100 dollars a barrel. NYMEX crude fell to the lowest in more than 10 months and Asian stocks dropped for a sixth day. U.S. equities slumped the most since December 2008. Still, support lines proved strong until later in the session, when the traded volume dropped.

OPEC: The members of the OPEC seem uncertain about how to respond to the latest price collapse. Those members, that had ruled out an output rise at the group's last meeting in June, among them Iran, call for an immediate unscheduled meeting while countries such as Saudi Arabia which had increased production despite evidence of a mounting supply glut, don't see no need for a meeting or a cut in production.

ICE gasoil for August delivery settled at 900.25 dollars on Monday. This was 12.25 dollars below Friday's settlement. With some 38,900 contracts the traded volume was significantly below average.

After WTI crude fell through the important 80 dollar mark early in the morning, technical analysts see the contract heading towards 75.00 dollars. Therefore technical analysts are rather bearish this morning, predicting first supports to be hit in the course of the day. However, more technical selling orders would only be triggered below 75.00 dollars for the WTI crude. The first support for the WTI crude is seen at 76.50 dollars, its first resistance at 81.30 dollars. The Brent's first resistance is seen at 104.50 dollars, its first support is at 100.00 dollars.

U.S.

Nymex Access losing: futures dropped as Asian stocks fell this morning, Brent crude plunged to a six-month trough below 99 dollars a barrel. Currently prices are recovering in a technical reaction of the oversold markets.

The traded volume is significantly above average.

Survey of US Petroleum inventories due out tonight at 22:30 (API) and Wednesday at 16:30 (DOE)

Crude oil +1.7; distillates +1.2; gasoline+/- 0.0 million barrels vs previous week.

Houston (ex-wharf indications 8-8)

380 cst $628
180 cst $663
MDO $931

New Orleans (ex wharf indications 8-8)

380 cst $631
180 cst $666
MDO $934

Singapore (closed today due to a National Holiday)

The Singapore fuel oil markets fell app $4.00 during the Platts window yesterday. There was reported relatively low activity in the market ahead of National Day holiday today. The delivered premiums were at around $10.00 above cargo prices yesterday. Both markets are trading significantly lower this morning down.

High premiums for prompt deliveries.

380 cst $647
180 cst $656
MDO $911

Fujairah (delivered indications 9-8)

380 cst N/A
180 cst $702
MDO $1064

Rotterdam

Last Friday in the MOC hsfo was traded between 614-620 usd and lsfo between 637-638 usd

Indications for delivered bunkers:

380cst : $ 600
(1.0 %) :$ 630
180cst: $ 627
(1.0 %):$ 659
MGO 0.1%S: $ 874