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As was to be expected, oil futures rose during morning trade. Crude oil contracts at ICE and NYMEX have already breached first resistance lines. They have been supported by the advancing euro as well as by technical buying orders. Worries about an escalation of the situation in the Iranadditionally supported oil futures. In the meantime, the IEA warned that long-term high oil prices might hamper global economic recovery. Currently there is no new decisive impetus.

After consolidating in early morning trading oil futures at ICE and NYMEX lost ground before noonwhen the technical indicators gave bearish signals amid a lack of fresh bullish fundamentals. When support lines were breached in the process, more technical selling orders were triggered. The strongly rising dollar added to the selling pressure as foreign investors took profit. The few USindicators, even though positive, were of minor importance and had no influence on the oil market. When the dollar shed earlier gains later in the session, oil compensated some of its losses but settled lower in the end.

ICE Gasoil contract for December delivery settled at 949.50 dollars on Monday. This was -23.50 dollars vs Friday's settlement. With some 72,100 contracts the traded volume was well above average.

Iran's OPEC governor, Muhammad Ali Khatibi, warned sanctions on petroleum producers were self-defeating for consuming nations and warned them against interfering in OPEC's next meeting. Though Khatibi didn't name any country, sanctions on Iranhave hindered production despite the country's holding OPEC's third-largest oil reserves. The U.S.government is set to unveil new sanctions on Tehran's energy sector next week, after the IAEA had found sufficient evidence on a military purpose of Iran's nuclear program. But last month, the International Energy Agency warned that insufficient oil and gas investment in the Middle Eastand North Africacould push oil prices to 150 dollars a barrel.

The Stochastic oscillator is still regarded as bearish at the ICE and NYMEX charts this morning although its selling signals are a few days old. Futures are more and more oversold, paving the way for an upward correction. So technical analysts see more downside only if prices should fall below Monday's lows. The WTI is supported at 95.70 dollars today, its first resistance is seen at 97.85 dollars. The Brent's first resistance is seen at 107.75 dollars, its first support is at 105.65 dollars.

U.S.

Nymex Access gaining: Oil futures are rising in Asian trading hours and on Globex electronic trading platform this morning, the brent holding above 107.00 dollars for a barrel as the sanctions, and the prospect of military action, against Iranoffset persistent worries about fuel demand in the Western Hemisphere. The traded volume is slightly below average.

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

Crude oil -0.3; distillates -1.6; gasoline+0.7 million barrels vs previous week

Houston (ex-wharf indications 21-11)

380cst $634
180cst $683
MGO $988

Very tight avails for 180 cst

New Orleans (ex-wharf indications 21-11)

380cst $637
180cst $686
MGO $991

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

Crude is bouncing up sharply after it's recent losses, gaining with WTI +$1.31. Singapore paper is less bullish, but turning as well with +$2.00 for 180cst and +$1.25 for 380cst for Dec, and for Jan 180 cst +$2.00 and 380cst +$2.00 with MGO Dec contracts at -$0.23 and for Jan at -$0.18. The cargo market is losing still with 180cst -$17.72, 380cst -$17.27 and MGO -$2.81.

The Singapore fuel oil markets lost another $17.00 during the Platts window on start of the week tracking the softening crude. There are heavy selling interests on the fuel oil swaps weakening the Asian fuel oil crack. The delivered bunker premiums were around $15.50 above the cargo prices yesterday. Bunker fuel oil swaps lost up to $15.00/mt at the front and app. $10.00/mt at the backend of the forward curve both for Rotterdamand Singaporepapers. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $658
180 cst $665
MGO $965

Fujairah (delivered indications 22-11)

380cst $667
180cst $685
MGO $1045

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

Bunker values in Northwest Europecontinued to fall Monday as FOB Rotterdam barges of high sulfur fuel oil lost $13.50/mt day-on-day in the afternoon on bearish equity and oil markets, sources said. HSFO in ARA remained tight, with vessels still queuing up for bunker fuel at loading installations. Three VLCCs were expected to get loaded for Singapore early December. Prompt product remains very tight. In the MOC 1% was traded at $ 631-635 with hs $ 602-603 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 614
(1.0 %) :$ 646
180cst: $ 642
(1.0 %):$ 665
MGO 0.1%S: $968