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This morning oil futures have traded steadier. Up to now, the ICE Gasoil's first resistance has proved strong. The Brent and the WTI crude have breached their first resistances. Earlier, oil futures had slightly retreated, testing their first supports. Market players have a hard time to find a direction today, given bullish factors as the conflict regarding the Iran's nuclear program, as well as bearish factors as the European debt crisis.

Oil prices started out steadier at the beginning of this week advancing until Monday afternoon. Some optimism in the euro zone, the well enough USemployment data published last Friday and the possibility of a embargo imposed by the EU on Iranian oil imports initially supported oil futures. The contracts rapidly exceeded their first resistance lines triggering technical buying orders, which made the WTI crude and the Gasoil surge to two-week highs. Worse-than-forecast USeconomic data (industrial orders and the ISM non-manufacturing index) caused some profit taking in the course of the day, however. The meeting of Angela Merkel and Nicolas Sarkozy did not bring about groundbreaking results but the overt determination to implement important reforms still had a slightly positive effect. In the course of the evening, markets plummeted, however. S&P had announced to possibly downgrade the credit ranking of 15 to 17 countries using the euro. The Dow Jones erased most of its earlier gains in no time and the euro as well as oil prices marked some losses.

ICE Gasoil contract for December delivery settled at 964.50 dollars on Monday. This was 13.25 dollars above Friday's settlement. With some 49,300 contracts the traded volume was far below average.

After the stochastic oscillator at the ICE charts has already been interpreted bearish in the last few days, the indicator also gives a selling signal for the WTI by now. Given yesterday's losses the WTI crude and the Brent have breached important supports and are now longer within their uptrend. Technical analysts thus assess the situation slightly bearish and expect a test of the leeway down. ICE Gasoil currently trades only slightly above its support at 950.00 dollars. According to analysts, there will be an additional selling impulsion, should this line be breached. The first support for the WTI is at 100.00 dollars today, its first resistance is seen at 101.05 dollars. The Brent's first resistance is seen at 109.90 dollars, its first support is at 109.00 dollars.

U.S.

Nymex acces slowing. Oil futures show no significant changes in Asia and on Globex electronic trading platform this morning. After Friday's price curb they consolidate on a low level. Investors wait for new impetus after the opening of the European markets. The traded volume is slightly below average. Market participants now eye the opening of the European session, as well as important economic indicators from the euro zone today.

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

Crude oil -0.8; distillates +0.8; gasoline +0.8 million barrels vs previous week.

Houston (ex-wharf indications 5-12)

380cst $643
180cst $680
MGO $978

Very tight avails for 180 cst

New Orleans (ex-wharf indications 5-12)

380cst $645
180cst $682
MGO $982

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

Crude is turning slightly bearish, losing with WTI -$0.61. Singapore paper is mirroring crude, losing with -$5.05 for 180cst and -$5.00 for 380cst for Dec, and for Jan 180 cst -$4.95 and 380cst -$5.00 with MGO Dec contracts at -$0.98 and for Jan -$0.98. The cargo market is mixed with 180cst -$0.20, 380cst -$0.67 and MGO +$0.75.

The Singapore fuel oil markets dipped slightly around -$0.5 during the Platts window yesterday. The Singapore fundamentals remain firm despite a slight dip in the cargo premium. The delivered bunker premiums strengthened to around $17.50 above the cargo prices yesterday as crude gained strength after the window. This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $669
180 cst $672
MGO $930

Fujairah (delivered indications 6-12)

380cst $695
180cst $715
MGO $1045

Avails issue are sustaining the market

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest European bunker values firmed Monday, in the wake of stronger oil prices arising from ongoing geopolitical tensions about Iran and hopes for a deal to solve the eurozone debt issue. Trading activity across the NWE hubs, however, was weak as some suppliers in Rotterdamwere away at an industry event and some buyers were unconvinced about firmer bunker levels. Market players see low demand all over the European ports. Following ongoing high sulfur fuel oil tightness in ARA, suppliers were now experiencing low sulfur fuel oil shortages.

Rotterdam

Indications for delivered bunkers:

380cst : $ 631
(1.0 %) :$ 670
180cst: $ 650
(1.0 %):$ 681
MGO 0.1%S: $965