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Crude prices rose for the eighth consecutive session on Monday to just below $117 a barrel, though prices stayed under a four-month peak hit on Friday on worries that high oil prices could hamper efforts to boost a struggling world economy. Oil has been boosted by the U.S. Federal Reserve's aggressive moves last week to stimulate the world's biggest economy, but Brent crude's rally of about a third since late June could backfire by undermining demand in a fragile economy.

The impetus provided by the Fed's announcement of another round of quantitative easing on Thursday has still shown its effects on Friday. The outlook of another injection of liquidity has mainly made the dollar depreciate and so oil prices have sharply risen. They have already breached their first resistance lines on Friday morning, triggering further technical buying orders. For the first time since the beginning of May, the WTI crude briefly exceeded the mark of 100 dollars. However, market participants have been prompted to take some profit at this level. Moreover, the resistance lines at 1,019.00 dollars for the G.Oil and at 118.00 dollars for the Brent remained strong, limiting the technical slack. Even though there were few other fundamental news, the turmoil’s in the Middle East and Africa that spread to more and more neighbouring countries nourished the bullish sentiment on the market. Despite some profit taking, oil futures have consolidated on a high level in the afternoon and in the evening, settling with considerable gains ahead of the weekend.

OPEC: Global oil demand is poised to be depressed for the next 18 months while supply levels from OPEC countries are at fairly comfortable levels, the West's energy agency the IEA said. The IEA said it made no significant changes to its global oil demand outlook and forecast demand would grow at a steady rate of around 0.8 million barrels per day (bpd) or 0.9% in both 2012 and 2013. Some analysts said the oil demand outlook would probably be marked down by the IEA in the future.

ICE Gasoil contract for October delivery settled at 1,013.50 dollars on Friday. This was 9.00 dollars above Thursday's settlement. With some 82,000 contracts the traded volume was well above average.

Neither the stochastic indicator nor the RSI provide any new clues this morning. Short and long term trend channels are still intact, which indicates that oil prices remain steady. However, futures are increasingly overbought. As investors have raised their long positions ahead of the weekend, pricing in the Fed's expansive measures, profit taking has become more likely, analysts of the ANZ bank said. Technical analysts thus assess the situation as largely neutral today waiting for other significant cues.

U.S.

Nymex access Steady : Oil futures have hardly changed on Globex electronic trading platform this morning. After the volatile trade on Thursday and Friday, quotations are still range bound but stick to their high level. The traded volume is on average. Investors look ahead to the development at stock and forex markets as well as today's economic indicators.

Houston (ex-wharf indications 14-9)

380cst $684
180cst $720
MGO $1110


New Orleans (ex-wharf indications 14-9)

380cst $689
180cst $728
MGO $1079

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

Crude is retreating with WTI -$0.76. Singapore paper is bearish with -$5.55 for 180cst and -$4.00 for 380cst for Oct, and for Nov 180 cst -$4.80 and 380cst -$3.55 with MGO contracts Oct -$0.22 and Nov -$0.19. The cargo market is bullish, improving with 180cst +$11.39, 380cst +$6.15 and MGO +$1.37.

The Singapore fuel oil markets surged more than $6.0 during the Platts window last Friday tracking strong crude gain. The delivered bunker premiums were seen $4.5- 10.0 above cargo prices last Friday due to the stronger crude after window. Bunker fuel oil swaps posted gains up to $6.5/mt at the front of the forward curve for the Singapore papers. Backend was a few dollars weaker. This morning the market is trading down.

High premiums for prompt deliveries.

380 cst $695
180 cst $710
MGO $1000

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up, although the on-going maintenance at the Flushing refinery was still affecting high sulphur availability. 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 %) :$ 728
180cst: $ 690
(1.0 %):$ 758
MGO 0.1%S: $1010