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Oil prices keep track of equities and the euro/dollar parity, testing their first resistances. ICE Gasoil even tested its second resistance line at 960 dollars. Meanwhile oil futures have pulled back from their earlier highs but still trade on a high level.

Futures at ICE and NYMEX already traded with a steady tendency on Monday morning. The advancing euro and gaining equities created some upward leeway, whereas the technical constellation gave some buying impetus. Temporary fluctuations regarding the euro/dollar-parity limited gains first, but in the course of the evening the upward trend persisted. While futures at ICE remained within their range and did not reach their resistances, as was expected, NYMEX Crude Oil breached several important resistance lines. This triggered technical buying orders, pushing the price way over 91 dollars in the evening. According to analysts, this development is due to crude oil inventories currently being at their lowest since February 2010, which might cause scarcity in the winter. The change from contango to backwardation created an additional buying signal, making lots of market participants clear their short positions.

OPEC will consider altering output in response to an increase in Libyan production, Kuwait’s Oil Minister Mohammad al-Busairy told reporters at a conference at the Dead Seain Jordan Sunday. Current prices are reasonable for exporters and importers, al-Busairy said. The next OPEC meeting is scheduled to meet 14th December.

ICE Gasoil contract for November delivery settled at 952.50 dollars on Monday. This was 3.00 dollars below Friday's settlement. With some 57,400 contracts the traded volume was on average.

There was additional buying impetus for the WTI Crude caused by the change from contango to backwardation. Most futures, however, keep trading within their range near their resistance lines at 111.90 dollars for the ICE Brent and 960.00 dollars for ICE Gasoil. New buying impetus will only be created, if these lines are breached. As WTI Crude futures already rallied yesterday after the buying signals, there is no sharp rise to be expected anymore today. Technical analysts expect that there is still some leeway up, but investors will probably wait for the publication of the DOE's data on Wednesday, to see whether inventories have further decreased. The WTI crude is supported at 90.70 dollars today, its first resistance is seen at 92.50 dollars. The Brent's first resistance is seen at 111.90 dollars, its first support is at 109.30 dollars.

U.S.

Nymex Access gaining. Oil futures edge higher in East Asiaand Globex electronic trade this morning, slightly recovering after Friday's profit taking. The traded volume is about on average. Traders' main focus today will be on the opening of European markets, on news about the Eurozone's debt crises as well as on today's economic indicators.

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

Crude oil +0.5; distillates -1.7; gasoline -1.3 million barrels vs previous week

Houston (ex-wharf indications 24-10)

380cst $667
180cst $713
MGO $993

Very tight avails for 180 cst

New Orleans (ex-wharf indications 24-10)

380cst $669
180cst $715
MGO $996

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

Crude is surging, jumping up with WTI +$4.76 Singapore paper is gaining still, but less bullish with +$7.10 for 180cst and +$7.00 for 380cst for Nov, and for Dec 180 cst +$6.80 and 380cst +$6.80 with MGO Nov contracts at +$1.76 and for Dec at +$1.76. The cargo market is slowing with 180cst +$5.74, 380cst +$5.95 and MGO +$0.85.

The Singapore fuel oil markets were up more than $5.75 during the Platts window. The delivered bunker premium softened to around $15.00 above the cargo prices as the tightness in the market eases. The terminals are also less congested due to previous loading and discharging of cargoes. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $679
180 cst $688
MDO $935

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest European bunker values edged higher Monday on ongoing high sulfur fuel oil tightness in ARAand stronger sentiment in the oil markets. Brent crude futures firmed in the afternoon with the market cautiously optimistic following the weekend’s EU summit, despite no concrete plans for the European debt crisis. Rotterdamand Antwerpcontinued to see limited HSFO supplies for prompt deliveries after some VLCCs loading for Singaporelast week. Congestion at Rotterdamloading installations continued to cause operational delays. In the MOC 1% was traded between $654.25-658 with hs $640-642 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 648
(1.0 %) :$ 662
180cst: $ 666
(1.0 %):$ 685
MGO 0.1%S: $ 960