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Oil prices eased towards $115 this morning as investors cashed in and ample supplies and hefty stockpiles in top consumer the United States weighed. Worries of a worsening economic outlook in the world's second-biggest oil consumer, China, on top of a prolonged crisis in Europe, are also pressuring oil prices. Front-month Brent crude, due to expire later on Tuesday, slipped 50 cents $115.30 by 1030 GMT. U.S. oil eased 5 cents to $91.80.

Oil markets stayed volatile also at the beginning of the new week, the strong euro and rising equity markets lending support in electronic morning trading in London and New York. When resistance lines proved strong and news from Iran said that Tehran was ready to resume the discussions on its nuclear program, market participants took profit during the session in New York. Oil's slide was accelerated by the bearish technical constellation but it was not permanent as operators were looking for direction, torn between the bearish and the bullish fundamentals. On the one hand the IEA and the OPEC signaled in their latest energy outlooks a strong decline in oil demand in 2012 and 2013, on the other hand geopolitical tensions in the Middle East keep the price level up. So market participants actually fear that Iran could deliberately cause an oil spill in the Strait of Hormuz in order to block oil exports from the Gulf countries. Oil prices eventually settled a bit lower in London and New York, except for the Brent front month that expires today.

ICE Gasoil contract for November delivery settled at 997,75 dollars on Monday. This was 3,25 dollars below Friday's settlement. With some 76,200 deals the traded volume was well above average.

The Stochastic oscillator at the WTI and the gasoil chart is still bearish this morning, while the one at the Brent chart is seen neutral. The technical constellation has thus lost some of its bullish potential. Key resistance lines today are 92,00 to 92,20 dollars (WTI) and 116,00 dollars (Brent). As long as these are strong, markets will stay bearish. Above these levels technically driven buying orders will be triggered.

U.S.

Nymex access bearish: Oil prices were trading in a narrow range in East-Asia but rose on Globex electronic trading platform this morning, breaching first resistance lines across the complex, inspired by an advance in the euro that was lifted by the rise in Asian equity markets. The traded volume is well above average. Market players eye the performance of stock and forex markets today as well as a string of economic indicators and the release of the API data tonight.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE).
Crude oil +0.9; distillates -0.7; gasoline +0.8 million barrels vs previous week.

Houston (ex-wharf indications 15-10)

380cst $633
180cst $683
MGO $1070

New Orleans (ex-wharf indications 15-10)

380cst $631
180cst $680
MGO $1075

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

Crude is stable with WTI +$0.22. Singapore paper is bullish with +$2.80 for 180cst and +$2.50 for 380cst for Oct, and for Nov 180 cst +$2.90 and 380cst +$2.60 with MGO contracts Oct +$0.52 and Nov +$0.48 The cargo market is slightly bearish with 180 cst -$0.39, 380cst -$1.65 and MGO -$0.91.

The Singapore fuel oil markets came off marginally between -$1.75 to -$0.25 during the Platts window on the start of the week. Market seems to be pretty uncertain as market flips between contango and backwardation. The delivered bunker premiums edged up slightly, seen at $7.0-5.5 above cargo prices yesterday. Bunker fuel oil swaps lost app.$3/mt at the front of the forward curve while backend was slightly stronger, loosing only a few cents for Singapore papers. This morning the market is trading higher.

380 cst $650
180 cst $660
MGO $970

ARA (Amsterdam - Rotterdam - Antwerp)

High and low sulfur bunker fuel oil premiums for prompt delivery in Rotterdam could be set to ease by the end of next week as more product flows into the region after the arbitrage fixtures earlier this month that left the bunker market tight. At this moment prompt enquiries are often high in price or no offers what so ever due to tight avails.

Rotterdam

Indications for delivered bunkers:

380cst : $ 626
(1.0 %) :$ 664
180cst: $ 658
(1.0 %):$ 696
MGO 0.1%S: $1000