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Oil futures traded in a narrow lateral range in electronic trading Monday with little momentum provided due to a lack of fundamentals in a thin trade. Only as volume increased after the opening of NYMEX session did the bearish technical constellation, along with Wall Street's losses and the constant rise of the US dollar that benefited from investors' disappointement by the lack of progress on Europe's sovereign debt crisis, trigger a hefty selloff. When the WTI crude after several attempts eventually breached its 86,60 dollar support for good, a string of technical selling orders pushed the contract just below the important 85.00 dollar support. The contract settled at 85,70 dollars a barrel, the lowest since August 26th and more than 5% lower than its one-month high above 90,00 dollars a barrel hit last week. The brent hit its 108,65 dollar support line, unimpressed by the weakening dollar that suffered from profit taking in late trade. As the one at the WTI chart did Monday, the Stochastic indicator at the brent and the gasoil chart is giving bearish signals this morning as well. Yet technical analysts are only somewhat bearish this morning, pointing out that the brent and the WTI supports at 108,60 dollars and 85,00 dollars respectively had proved strong Monday. Only below these marks more technical selling orders will be triggered. In this case, so technical analysts reckon, WTI could fall as low as 83,00 dollars and the brent could hit 108,00 dollars. The first support for the WTI crude is seen at 85,10 dollars, its first resistance at 86,20 dollars. The Brent's first resistance is seen at 110,00 dollars, its first support is at 108,70 dollars.

ICE Gasoil contract for October delivery settled at 931,50 dollars on Monday. This was 19,00 dollars below Friday's settlement. With some 56.100 contracts the traded volume was about on average.

The delays in cargoes of Forties crude persist but the situation is expected to improve by October, which would reduce the Brent-WTI spread. Speculators on the oil market already increased their bets that Brent crude prices would fall by cutting their net long position in Brent crude futures and options by 5% compared with the previous week, so an ICE report. The net long position is the difference between the number of long positions, or bets that prices will rise, and short positions, or bets that prices will fall. Growing worries over Europe's sovereign debt crisis and the bearish energy outlooks by EIA, IEA and the OPEC are named as the major reason for this development. The first oil tanker after the termination of the Libyan civil war is on its way to a Libyan oil port. The Panama-flagged 106,000 deadweight ton crude oil tanker 'Trident Hope' is bound for Mellitah in Libya where it is expected to arrive Wednesday.

The euro slid sharply this morning, moving closer to a seven-month low against the greenback after Standard and Poor's cut its debt rating on Italy and as investors fret over whether Greece can borrow badly needed cash from international lenders. These worries encouraged investors to exit a range of riskier assets including the euro. The single European currency hit a session low of 1.3599 dollars after the Italy news, but trimmed some losses as traders came to terms with the rating cut. The downtrend in the euro is likely to continue, so say analysts. The dollar for its part could be hurt if the U.S Federal Reserve adopts bolder easing steps than markets are expecting on Wednesday when it ends a two-day meeting. But many analysts suspect that relatively high U.S. inflation will hinder the U.S. central bank from adopting large-scale easing. The euro is currently selling at 1,3614 dollars vs 1,3692 dollars last night in New York. The single currency has support at 1,3590 dollars, 1,3555 dollars and 1,3495 dollars. Resistances are at 1,3645 dollars, 1,3705 dollars and 1,3795 dollars.

• The ZEW indicator for Economic Sentiment regarding the Euro-zone stands at -44.6 in September after a reading of -40.0 in the previous month and economists' expectations of -42.5.

• The German ZEW indicator for Economic Sentiment stands at -43.3 in September after a reading of -37,6 in August and economists' expectations of -44.1.

U.S.

Nymex Access gaining: Oil futures steadied in East Asia and Globex electronic trade this morning after two days of hefty losses. The traded volume is above average. As the NYMEX crude October contract expires today, volume in the new front month November is much higher.

Houston (ex-wharf indications 19-9)

380cst $630
180cst $674
MGO $950

Very tight avails for 180 cst

New Orleans (ex-wharf indications 19-9)

380cst $633
180cst $678
MGO $955

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is losing with WTI -$0.39. Singapore paper is reflecting the softness with -$7.40 for 180cst and -$6.35 for 380cst for Sept, and for Oct 180 cst -$7.35 and 380cst -$6.35 with MGO Sept contracts at -$2.00 and for Oct at -$1.98. The cargo market is finally reacting to yesterday's losseswith 180cst -$10.87, 380cst -$11.27 and MGO -$1.66.

The Singapore fuel oil markets fell more than $11.00 during the Platts window on the start of the week tracking weak crude. Market remains firm due to strong buying interest by Hin Leong which support the cargo premium to more than $5.50. The delivered bunker premiums were up around $9.50 above cargo prices yesterday.

High premiums for prompt deliveries.

380 cst $645
180 cst $655
MDO $925

Fujairah (delivered indications 20-9)

380cst $657
180cst $670
MGO $1050

Rotterdam

Indications for delivered bunkers:

380cst : $ 639
(1.0 %) :$ 659
180cst: $ 664
(1.0 %):$ 682
MGO 0.1%S: $ 942