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Crude-oil prices traded lower this morning as investor focus turned to U.S. oil inventory data, due later in the global day, which are expected to show a further build in already-high U.S. stockpiles. At 0930 GMT, the front-month November Brent contract on London's ICE futures exchange is down 85 cents, or 0.8%, at $ 110.72 a barrel. The front-month November light, sweet crude contract on the New York Mercantile Exchange is trading down 40 cents, or 0.5%, at $91.49 a barrel. Both contracts have been trading in a very narrow range this week, with relatively light volumes, amid a dearth of fundamental news.

ICE Gasoil contract for October delivery settled at 982.50 dollars on Monday. This was 1.75 dollars above Friday's settlement. With some 51,800 contracts the traded volume was about on average.

The Stochastic oscillator's two lines at the WTI chart are converging its’ a sign that the indicator has lost its bullish impact. The one at the gasoil charts gives a first selling signal, while the one at the Brent chart is still neutral. That's why technical analysts expect that the futures at the ICE will test their downside within the short-term uptrends. Should the Stochastic oscillator at the Brent and the WTI charts also give a bearish signal the lower limits of the trend channels might be breached. Still, prior to tomorrow's DoE data and the important economic indicators to be released on Thursday and Friday there will be no hefty downward correction.

U.S.

API's: Crude oil +0.5; distillates -0.3; gasoline -0.1 million barrels vs previous week. Refinery utilization -0.1%
DOE's; due out tonight
Forecasts: Crude oil +1.7; distillates -0.3; gasoline -0.4 million barrels vs previous week.

Houston (ex-wharf indications 2-10)

380cst $647
180cst $688
MGO $1055

New Orleans (ex-wharf indications 2-10)

380cst $658
180cst $688
MGO $1050

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

Crude is losing with WTI -$1.48. Singapore paper is falling with -$8.80 for 180cst and -$9.00 for 380cst for Oct, and for Nov 180 cst -$8.45 and 380cst -$9.80 with MGO contracts Oct -$1.00 and Nov -$1.10. The cargo market is improving with 180cst -$0.41, 380cst +$0.21 and MGO +$0.50.

The Singapore Fuel Oil markets were mostly flat during the morning window yesterday. The delivered bunker premiums softened to around $6.0 above cargo prices yesterday as quiet bunker demand was reported amidst holidays break for China. Bunker fuel oil swaps lost a few cents at the front of the forward curve both the Singapore papers. Backend in Singapore papers added a few cents. This morning the market is trading down.

High premiums for prompt deliveries.

380 cst $650
180 cst $660
MGO $950

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up, although Suppliers in Rotterdam continued to experience some difficulties to meet low sulfur fuel oil inquiries for prompt due to ongoing supply shortages in the area. 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 : $ 625
(1.0 %) :$ 678
180cst: $ 649
(1.0 %):$ 732
MGO 0.1%S: $966