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After a weak beginning of the European session equities have changed direction and marked considerable gains which has also lifted oil futures. The strengthened euro, having gained about 0.15 dollars versus the dollar overnight, likewise supported the complex. Despite of a disappointing euro zone business climate indicator, the common currency profits from investors' hopes on decisive results brought about by the reunion of the EU's finance ministers. Oil prices are also supported by geopolitical tensions in the Middle-East and expectations of sinking US oil inventories.

Oil prices started higher yesterday as traders returned from the long US weekend with a positive stance. The recovering euro and a strong rise in European equities helped oil prices up in electronic morning trading and lent support throughout the day. Rekindling hopes of a solution of the European debt crisis and positive European and US indicators had lifted traders' spirit. A major supportive factor for oil, however, was the rising geopolitical risk after the Arab League had imposed sanctions on Syriaand the European Union on Thursday will decide on fresh sanctions on Iran. Part of the sanctions will probably be an embargo on Syrian and Iranian oil which could lead to a shortage in supply in the heating-oil relevant winter months. The bullish factors acting as a stimulus, oil prices breached several resistance lines in the course of the day, triggering technical buying orders. When the euro shed some of its earlier gains, oil's rise was halted but futures managed to recover later in the session and settled higher in the end.

ICE Gasoil contract for December delivery settled at 950.00 dollars on Monday. This was 11.25 dollars above Friday's settlement. With some 57,000 contracts the traded volume was about on average.

The Stochastic oscillator is bullish at all ICE and NYMEX charts this morning, but while the RSI indicator is neutral for the brent and the WTI, the one at the gasoil chart is set to breach the 30% line in the course of the day which would give markets a bullish signal. By breaching several resistance lines yesterday more upside was revealed. So technical analysts reckon that ICE futures will hit Monday's highs in the course of the day, breaching even more resistance lines above which more technical buying orders will be triggered. While bets on the brent-WTI spread weigh on the crude oil in New York which is seen in consolidation today with risks skewed to the downside, the contract in Londonis being supported. The first support for the WTI is at 97.10 dollars today, its first resistance is seen at 100.30 dollars. The Brent's first resistance is seen at 109.50 dollars, its first support is at 107.50 dollars.

U.S.

Nymex acces gaining. Oil futures are higher in Asiaand on Globex electronic trading platform this morning, mainly supported by the dollar losing ground vs the euro in Asian trading and prospects of a drop in US crude oil reserves. The traded volume is below average. As on Monday, there are only a few economic indicators on the agenda today, so traders will keep eyeing the dollar and equity markets for direction.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)
Crude oil -0.2; distillates -1.2; gasoline +0.8 million barrels vs previous week

Houston (ex-wharf indications 28-11)

380cst $641
180cst $678
MGO $978

Very tight avails for 180 cst

New Orleans (ex-wharf indications 28-11)

380cst $643
180cst $681
MGO $991

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

Crude is turning, losing part of Yesterday's gains with WTI -$1.55. Singapore paper is mixed with +$9.55 for 180cst and +$10.15 for 380cst for Dec, and for Jan 180 cst +$7.80 and 380cst +$7.85 with MGO Dec contracts at -$0.13 and for Jan at -$0.23. The cargo market is cautiously turning now with 180cst +$0.94, 380cst +$1.41 and MGO +$0.36.

The Singapore fuel oil markets were up more than $1.00 during the Platts window yesterday. The market fundamentals are still firm as Singapore heavy residual inventory figure remains low on the average. The delivered bunker premiums were around $15.00-17.00 above the cargo prices yesterday. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $665
180 cst $675
MGO $925

Fujairah (delivered indications 28-11)

380cst $674
180cst $697
MGO $1040

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest bunker market is firm in line with strong crude. Trading activity in ARA was mixed as some buyers were still hesitant on firmer fuel oil levels. Antwerp saw healthy buying interest on ongoing high sulfur fuel oil shortages. Rotterdamremained very tight for prompt HSFO with further shortages expected as three VLCCs were expected to get loaded next month. The potential strike at Exxon Mobil’s 275,000 b/d Antwerprefinery was put on hold Monday although the workers had voted against the management proposal, a trade union source said. The union announced a strike few weeks ago over a collective labor agreement which was planned for November 23 and the company was planning to halt the site prior to that, but subsequently the trade union put a proposal from the management up for a referendum.

Rotterdam

Indications for delivered bunkers:

380cst : $ 636
(1.0 %) :$ 675
180cst: $ 655
(1.0 %):$ 684
MGO 0.1%S: $970