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Oil prices are little changed this morning in quiet trading with most traders waiting for the ISM Chicago data this afternoon and the central bank statements due later in the week. Markets remain hopeful that the ECB, and possibly the FED will announce a change in policy this week in an effort to lower the borrowing costs for both Spain and Italy.

At the beginning of the week, oil futures at ICE and NYMEX traded sideways - consolidating without any grave fluctuation. As this week still bears important economic data, market participants still hesitated, avoiding larger risk positions. In the morning, oil prices were slightly weighed down by EU economic indicators and the euro that declined in the course of the day prompting investors to take some profit at oil markets. However, market players avoided larger short positions and so downward corrections remained limited. Since there was only little news, quotations settled hardly changed, marking only a few losses.

ICE Gasoil contract for August delivery settled at 913.00 dollars on Monday. This was 2.25 dollars above Friday's settlement. With some 31,500 contracts the traded volume was below average.

Iran: Before its visit to Israel, US defense minister Leon Panetta reiterated that the conflict with Iran needed to be resolved by diplomatic means. Military actions or Israel going it alone were the wrong way at the moment, he added. Sanctions worked and would soon be stepped up by the international community. Economic pressure thus needed to be kept up. Tehran has showed its readiness to have further negotiations and seems interested in a diplomatic solution. However, the USA would not tolerate Iran having nuclear weapons and leave the door open for any option, Panetta said.

The stochastic indicator is still slightly bullish at ICE and NYMEX, whereas the RSI is in the neutral zone. The stochastic is slightly overbought and its lines already converge again, so the indicator's bullish impact is continuing to decrease. Technical analysts still assess the situation as slightly bullish as there is no selling signal yet. Market participants are thus likely to remain cautious today. This might lead to a lack of direction and stronger volatility against the backdrop of less volume.

U.S.

Nymex access losing: Oil futures showed no clear direction in Asian trading and on Globex electronic trading platform this morning, as - like last night - markets are rather nervous but oil futures traded in a narrow range. The traded volume is on average. Market participants now eye news from the Middle East and regarding monetary policy, the performance of European stock and finance markets, as well as forex trade and today's economic indicators.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)
Crude oil -1.1; distillates +1.2; gasoline +0.7 million barrels vs previous week.

Houston (ex-wharf indications 30-7)

380cst $628
180cst $655
MGO $960

New Orleans (ex-wharf indications 30-7)

380cst $632
180cst $663
MGO $970

Singapore (correct as of 14:30 hrs LT - delivered indications)

Crude is turning slightly bearish with WTI -$0.30. Singapore paper is turning as well with -$0.10 for 180cst and -$0.50 for 380cst for Aug, and for Sep 180 cst -$0.05 and 380cst -$0.50 with MGO contracts Aug -$0.30 and Sep -$0.30. The cargo market is more bullish with 180cst +$1.73, 380cst +$0.04 and MGO +$0.05.

The Singapore fuel oil market prices rose more than $5.5 during the morning window yesterday tracking crude movements. The latest Singapore heavy residual inventory reported a slight build of 0.23 mbbl to 17.61 mbbl. The delivered bunker premiums were around $7.0 above cargo prices yesterday. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $630
180 cst $640
MGO $900

ARA (Amsterdam - Rotterdam - Antwerp)

In the ARA, both hsfo and lsfo levels are still firm, tracking crudes and stock markets. Not much demand seen, with loading delays and short cutter stocks underpinning the markets. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 610
(1.0 %) :$ 654
180cst: $ 634
(1.0 %):$ 696
MGO 0.1%S: $899