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Oil prices have been able to extend their gains during morning trade breaching first resistance lines. Momentum has mainly been provided by the strong euro that already tested its resistance at 1.2815 dollar in the early morning. Estimates regarding US oil inventories have also supported quotations.

After the price rally late Friday evening, oil prices have traded on a high level Monday morning. Market participants took some profits at night but the tendency remained steady given the hopes on expansive measures. Disappointing Chinese economic data have slightly weighed on sentiment, however. Still, oil futures have tested their upward potential, with the Brent and the G.Oil testing their second resistance lines at 115.00 dollars, resp. at 992.50 dollars. Since these resistances proved strong, however, and the WTI has not even touched its resistance at 96.75 dollars, there has been some technical profit taking. The lower Chinese crude oil imports (on a 22-month low), as well as Friday's late price rally, prompted investors to close some of their long-positions. The WTI crude thus breached two supports whereas the supports at 114.00 dollars for the Brent and at 982.00 dollars for the G.Oil have not been sustainably breached, limiting losses. During late evening, oil futures have orientated themselves in an upward direction however, even though trade remained rather volatile. Market participants expect that the Fed will announce new expansive measures on Thursday, which would bolster prices, and so oil futures have consolidated on a high level only breaching short term supports and resistance lines, in all.

ICE Gasoil contract for September delivery settled at 988.25 dollars on Monday. This was 2.75 dollars below Friday's settlement. With some 58,000 contracts the traded volume was on average.

The stochastic indicator has turned bullish at ICE and NYMEX this morning and might bolster oil futures today. Technical analysts are still sceptical, however, as the influence of economic data and the central banks are currently rather high. From the mere technical point of view, there are currently some supportive factors. Ahead of the Fed's decision on Thursday quotations are most likely to keep consolidating within their trend, however.

U.S.

Nymex access steady: Oil futures have hardly changed in East-Asia and on Globex electronic trading platform this morning. New clues are still lacking this morning and so quotations trade near yesterday's settlement level. The traded volume is lower than average. Market players now eye stock and forex markets as well as today's economic indicators.

Experts expect that the shutdown of Gulf oil installations because of hurricane Isaac still has considerable impact on US oil inventories. Across-the-board draws in crude oil and product stocks seen as not all oil platforms are fully back to operation yet. Refinery run rate should have slightly increased, though.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)
Crude oil -1.5; distillates -0.9; gasoline -1.6 million barrels vs previous week

Houston (ex-wharf indications 10-9)

380cst $668
180cst $704
MGO $1060

New Orleans (ex-wharf indications 10-9)

380cst $663
180cst $706
MGO $1065

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

The Singapore fuel oil markets were up more than $4.0 during the morning Platts window yesterday. Markets were expecting the regional demand to pick up especially from the China. The delivered bunker premiums were seen at $8.5- 9.5 above cargo prices. Bunker fuel oil swaps posted app.$4.5/mt gains at the front of the forward curve for Singapore papers. Backend was app.$1/mt weaker. This morning the market is trading slightly higher.

High premiums for prompt deliveries.

380 cst $683
180 cst $695
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up. High sulfur fuel oil in Rotterdam and Antwerp remained tight following limited blending stock availability in the region and mild loading barge delays. 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 : $ 661
(1.0 %) :$ 724
180cst: $ 684
(1.0 %):$ 750
MGO 0.1%S: $985