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Oil futures at the ICE hit resistance lines in morning trading despite a stronger dollar, supported by the strong opening of European equity markets amid hopes of a resolution to the euro-zone debt crisis. But traders will remain cautious, limiting oil's gains, as optimism over the European crisis in recent weeks has often been fleeting.

Yesterday, oil futures eased in electronic morning trading weighed down by a stronger dollar. Support lines were breached early in the day, triggering a wave of technical selling. Only when European equity markets opened higher and the euro regained strength, oil prices recovered but remained volatile during the session in New York, tracking equities and the euro/dollar correlation for the rest of the day.

ICE Gasoil contract for October delivery settled at 890.50 dollars on Monday. This was 8.50 dollars below Friday's settlement. With some 56,100 contracts the traded volume was about on average.

OPEC: Italian ENI SpA had restarted production from a Libyan key oil field Monday, hard on the heels of another production resumption from Total SA. At present, the production level is about 31,900 barrels a day and could reach 140.000 barrels a day by the end of November and 600.000 bpd by the end of the year but the absence of foreign oil contractors and difficulties to mobilize equipment and personnel could become a problem, according to the chairman of Eni's Libyan joint venture. Libya is expecting to ship it's first post-war crude exports today. The crude will depart from the Eastern oil terminal of Tobruk. The 500,000 barrels loading had been awarded to Vitol after the company had made fuel shipments to rebel-controlled areas at critical moments during the war. Libya's total output currently stands at 230,000 barrels a day and could be ramped up to 350,000 barrels a day by the end of October.

The RSI and Stochastic indicators turned bullish at all charts Monday in the afternoon and are still giving a buying signal today. Yet technical analysts regard the technical upward correction as short-lived as there is still no floor in prices. Futures continue to look bearish and the overall downward tendency is strong. The WTI crude is supported at 77.10 dollars today, its first resistance is seen at 85.00 dollars. The Brent's first resistance is seen at 105.60 dollars, its first support is at 101.65 dollars.

U.S.

Nymex Access gaining: Oil futures trade higher in East Asiaand Globex electronic trade this morning, extending last night's gains supported by a stronger euro. The traded volume is well above average.

Houston (ex-wharf indications 26-9)

380cst $615
180cst $659
MGO $908

Very tight avails for 180 cst

New Orleans (ex-wharf indications 26-9)

380cst $617
180cst $661
MGO $911

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

Crude is bouncing up, countering Yesterday's losses with WTI +$3.97. Singapore paper is mirroring crude, gaining with +$15.40 for 180cst and +$15.40 for 380cst for Oct, and for Nov 180 cst +$15.40 and 380cst +$15.40 with MGO Oct contracts at +$2.74 and for Nov at +$2.75. The cargo market is gaining bearish momentum, losing with 180cst -$20.33, 380cst -$19.07 and MGO -$3.67.

The Singaporefuel oil markets plunged more than $19.00 during the Platts window on the start of the week on weaker crude. With the fall of the outright prices, the market demand was stronger while sellers were not too keen to offer at lower prices. The delivered bunker premiums strengthened to around $15.50 above cargo prices yesterday as crude rallied after the window. This morning the markets are trading higher.

High premiums for prompt deliveries.

380 cst $630
180 cst $635
MDO $902

Fujairah (delivered indications 27-9)

380cst $645
180cst $667
MGO $1056

Avails issues are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market continue to see lower values Monday on weaker 3.5% FOBRotterdam barge prices that followed a $1/barrel drop in Brent crude, sources said. Oil prices remained in the negative territory as world leaders failed to ease concerns over global economy. Demand in Rotterdam remained supported on ongoing high sulphur fuel oil tightness that continued to cause operational delays at loading installations. In the MOC 1% 617.50-619 were the levels traded, with hs 598-599.50 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 611
(1.0 %) :$ 633
180cst: $ 633
(1.0 %):$ 658
MGO 0.1%S: $ 905