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The gains oil prices in London and New York during morning trade have been capped by the strong resistances at ICE. After quotations had surprisingly declined Monday afternoon, this is considered as a merely technical upward correction. The stronger euro, resp. the weaker dollar has lead to a somewhat steadier tendency. The tropical storm Isaac is still a bullish factor but is currently not providing any directive clues having not yet become a hurricane. The course of the storm has reduced investors' fears of sustainable production losses.

Oil futures slightly rallied on Monday morning after oil platforms and refineries in the Gulf of Mexico had been shut down for security reasons. Upward potential remained limited though, as - at the same time as there were the bullish factors regarding the tropical storm Isaac - rumour has it that strategic oil reserves might be released soon, given the fact that the IEA no longer refused this idea. Production losses of refineries and oil platforms in the south of the USA might favor such a release, as they also - at least on the short run - lead to a short supply. In the course of the afternoon, sudden profit taking caught some investors on the wrong foot. Tropical storm Isaac had still not been upgraded to a hurricane, making long-term losses due to damages more unlikely. Along with the rumours regarding the release of strategic reserves, this has triggered profit taking that was fuelled all the more as soon as oil futures breached their technical supports and the RSI gave a new selling signal falling through its 70% line. In late evening trade market participants consolidated their risk positions on a lower level.

ICE Gasoil contract for September delivery settled at 982.75 dollars on Monday. This was 6.75 dollars below Friday's settlement. With some 49,400 contracts the traded volume was on average.

The stochastic indicator remains bearish whereas the RSI fell below the 70% line yesterday afternoon, giving a selling signal. While the Brent has already breached its long-term support, this mark is still intact at WTI and G.Oil charts, limiting the slack downward. The stochastic indicator is still bearish, in all, but its lines already converge again for the the WTI and the Brent. Therefore the indicator is losing some influence. Technical analysts thus assess the situation as neutral to bearish despite Yesterday's selling signals.

U.S.

Nymex access gaining: Oil futures have hardly changed in East-Asia and on Globex electronic trading platform this morning. Futures at ICE and NYMEX have consolidated near yesterday's settlement level. The traded volume is slightly below average. Market participants now eye Isaac's development as well as the performance of stock and forex markets and a today's economic indicators.

Houston (ex-wharf indications 27-8)

380cst $663
180cst $702
MGO $1045

New Orleans (ex-wharf indications 27-8)

380cst $662
180cst $700
MGO $1050

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

Crude is back on its bearish track, dropping with WTI -$1.13. Singapore paper is responding, losing with -$7.75 for 180cst and -$6.20 for 380cst for Sep, and for Oct 180 cst -$7.75 and 380cst -$6.20 with MGO contracts Sep -$1.73 and Oct -$1.80. The cargo market is turning with 180cst +$4.33, 380cst +$5.64 and MGO +$1.08.

The Singapore fuel oil markets were up more than $4.0 during the morning Platts window yesterday lifted by stronger crude values. The Amuay refinery fires will impact the Asia regional supply as Venezuela exports oil products to Asia regularly (a monthly average of around 400,000mt fuel oil according to IE). The delivered bunker premiums were seen around $7.25 above the cargo prices. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $670
180 cst $682
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA prices eased somewhat, but not much demand survaced. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 660
(1.0 %) :$ 713
180cst: $ 684
(1.0 %):$ 738
MGO 0.1%S: $985