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Oil prices firm, on the back of a weaker US dollar and easing concerns over hurricane Isaac and ECB statements they will consider buying sovereing bonds of troubled countries such as Italy and Spain, outweighing the weak Chinese manufacturing data.

After Friday night's gains, oil futures have traded sideways on a high level on Monday morning. Given the US holiday, the trading range remained rather narrow and the volume at ICE and NYMEX was low all day. Disappointing economic data from China and Europe did not have any major impact and so markets have only seen some movement late in the afternoon. Around 5 p.m. the euro exceeded its first short-term resistance and oil futures have likewise extended their gains. Expectations that the central banks of the USA, China and Europe might take more expansive measures have still supported the currency and oil futures, even though there have not been any breaking news from the fundamental side. Therefore, market participants have considered the rise as a technical movement, favoured by the low volume and accelerated by further technical buying orders after first supports had been breached.

ICE Gasoil contract for September delivery settled at 1.001.50 dollars on Monday. This was 6.50 dollars above Friday's settlement. With some 21.700 contracts the traded volume was below average.

The stochastic indicator has remained bullish at ICE and NYMEX charts this morning whereas the RSI currently gives no cues. The existing up trend has not been disrupted which is also indicating that the steady tendency will move even though the market is slightly overbought at the moment. As US traders are back today, there might be some adjustments but, in all, technical analysts asses the situation as bullish.

U.S.

Nymex access gaining: Oil futures have traded higher in East-Asia and on Globex electronic trading platform this morning. The euro jumped last night giving a fillip to oil futures as well. As the latter already tested their upward potential yesterday, the effect is not yet that significant at ICE and NYMEX, however. The traded volume is far above average as there are orders that were not considered yesterday, due to Labor Day in the USA. Market participants today eye the development at stock and forex markets, as well as some European economic data.

The US oil inventories data according to the API and the DOE will be published one day later than usual this week, due to the holiday on Monday (Labor Day). Thus, the API's figures will be released Wednesday night at 10.30 p.m., the DOE's data on Thursday afternoon at 5 p.m. The survey will be published Wednesday morning at 6.30 p.m.

Houston (ex-wharf indications 31-8)

380cst $661
180cst $708
MGO $1056

New Orleans (ex-wharf indications 31-8)

380cst $681
180cst $715
MGO $1050

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

Crude is slowing, but gaining still with WTI +$0.66. Singapore paper is more bullish with +$9.45 for 180cst and +$8.60 for 380cst for Sep, and for Oct 180 cst +$10.00 and 380cst +$8.65 with MGO contracts Sep +$1.45 and Oct +$1.53. The cargo market is in line with crude and paper, gaining with 180cst +$8.11, 380cst +$5.85 and MGO +$0.01.

The Singapore fuel oil markets rose between $5.5- 8.5 during the Platts window yesterday tracking crude movements. Market fundamentals look firm as cargo premiums remain strong. The delivered bunker premiums yesterday slipped to $6.5-8.0. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $685
180 cst $702
MGO $995

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up. Loading delays are less frequent, but some shortages are reported in Antwerp stil. One refinery is due to shut down for maintenance, possibly lasting for a couple of weeks. 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 : $ 666
(1.0 %) :$ 732
180cst: $ 692
(1.0 %):$ 750
MGO 0.1%S: $1005