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Crude-oil futures fell sharply in electronic trading Monday in line with other commodities and riskier assets such as equities, as the dollar appreciated on fears about global growth and dimming hopes of further U.S. quantitative easing. Light, sweet crude for November delivery more than doubled losses seen in Asian trading, dropping $1.44, or 1.6%, to $88.46 a barrel on Globex, reaching the lowest level in just under a week according to FactSet.

Oil prices started slightly lower into the day in electronic morning trading in London and New York in a quiet market with little volume. Market participants were cautious, eyeing the release of the US employment report in the afternoon. Short before noon traders took some profit from Thursday's strong price increase so that crude oil breached the first support lines while the second proved strong for the time being. When figures showed that U.S. unemployment rate dropped against all expectations, oil rallied until their first resistance lines which in turn also proved strong, limiting oil's gains. In the absence of fresh bullish news traders sold off later in the session and the spread between the Brent and the WTI crude rose above 22 dollars for a barrel. A slow U.S. demand for crude oil due to refinery outages because of maintenance work or unexpected indicants weighs on the WTI but supported gasoline futures on Friday that settled higher on fuel shortage in some West Coast regions.

ICE Gasoil contract for October delivery settled at 989,50 dollars on Friday. This was 10.50 dollars above Thursday's settlement. With some 39,400 contracts the traded volume was well below average.

The Stochastic oscillator is neutral at the WTI chart this morning but seen bullish at the ICE charts. The technical market situation is thus rather bullish today, but technical analysts expect that the gains will be limited by the strong resistance lines at 1.000,00 dollars (gasoil), 113,40 dollars (brent) and 91,85 dollars (WTI).

U.S.

Nymex access bearish:Oil prices lost ground in Asian trading, breaching support lines on Globex electronic trading platform this morning, and continue to decline weighed down by the drop of the euro vs the dollar. The traded volume is about on average. Market players eye the performance of stock and forex markets today as well as a couple of indicators from the German economy.

Houston (ex-wharf indications 5-10)

380cst $632
180cst $673
MGO $1050

New Orleans (ex-wharf indications 5-10)

380cst $637
180cst $665
MGO $1050

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

Crude is raising with WTI +$2.58. Singapore paper is increased with +$12.25 for 180cst and +$13.20 for 380cst for Oct, and for Nov 180 cst +$14.20 and 380cst +$15.65 with MGO contracts Oct +$2.71 and Nov +$2.79. The cargo market has bounced with 180cst +$0.70, 380cst +$2.01 and MGO +$0.60.

The Singapore fuel oil markets erased previous loss gaining more than $11.5 flat during the morning Platts window last Friday. The market seems to be well supplied while demand lags behind. The delivered bunker premiums slipped to around $5.0 above cargo prices last Friday. Bunker fuel oil swaps gained a few dollars at the front of the forward curve both for Singapore paper. Backend was significantly stronger, up by nearly $7/mt for paper. This morning the market is trading down.

380 cst $635
180 cst $645
MGO $950

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, but high sulfur bunker fuel oil prices for prompt deliveries in ARA moved higher on tight supply in the region. Due to more demand, especially LSFO but less product available, some suppliers are fully booked till 10th of October.

Rotterdam

Indications for delivered bunkers:

380cst : $ 620
(1.0 %) :$ 662
180cst: $ 652
(1.0 %):$ 694
MGO 0.1%S: $983