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Brent crude oil fell towards $109 a barrel on Monday as U.S. East Coast refineries shut ahead of the approach of Hurricane Sandy, reducing crude use in the world's largest oil consumer. Brent futures for December dropped $1.04 to a low of $108.51, before recovering to around $109.15 by 1100 GMT. Brent posted a 0.5 percent loss last week.

Friday morning, oil futures at ICE and NYMEX have traded rather subduedly testing their downward slack given the slightly bearish market fundamentals. The strong supports of the WTI crude at 85.00 dollars, for the Brent at 107.45 dollars and for the G.Oil at 955.50 dollars limited losses, however. Along with the rather bullish technical situation, this favored a counterreaction little later. In the afternoon, the better-than-expected (preliminary) reading of the US GDP in the third quarter has also given oil futures a fillip. While quotations at ICE have as a consequence breached first resistance lines, which triggered more technical buying orders, the WTI crude was unable to sustainably exceed its short term resistance. Hurricane Sandy, which is heading for the US East-coast has stoked concern amid investors at oil markets. It is widely expected that Sandy will have a bearish impact on crude oil futures. This slightly pressured the WTI on Friday. Quotations at ICE have added to gains, however, after reports on a blast at the Kirkuk-Ceyhan pipeline.

Hurricane Sandy: Fifty million people from the Mid-Atlantic to Canada are in the path of the massive storm, which forecasters said could be the largest ever to hit the U.S. mainland. The second-largest refinery on the U.S. East Coast began shutting down, and three other plants cut output as the storm threatened floods and power outages across the region. Oil analysts say Sandy is likely to depress U.S. oil consumption as commuting and road transportation fall and flights to and from East Coast airports are cancelled.

ICE Gasoil contract for November delivery settled at 968.50 dollars on Friday. This was 10.50 dollars above Thursday's settlement. With some 48,800 deals the traded volume was slightly below average.

At the beginning of the week, the stochastic indicator remains bullish at ICE as well as at NYMEX. The RSI still hasn't provide any signal but has already scratched at the 30%-line at the Brent's and the WTI's charts. If it breaches this line in the course of the day, there will be a new buying signal that will provide new upward potential. Until then, technical analysts still assess the situation as neutral to bullish, pointing to the high insecurity caused by hurricane Sandy and the probability of investors remaining cautious with NYMEX floor trade closed.

U.S.

Nymex access neutral to bullish:Oil prices have traded sideways in East-Asia and on Globex electronic trading platform this morning. The traded volume is slightly above average. Investors now keep an eye on the development of Hurricane Sandy, on the performance of stock and forex markets and some economic indicators.

Houston (ex-wharf indications 26-10)

380cst $615
180cst $690
MGO $1030

New Orleans (ex-wharf indications 26-10)

380cst $628
180cst $692
MGO $1020

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

Crude is neutral with WTI 1$1.20. Singapore paper is stable with -$1.90 for 180cst and -$1.70 for 380cst for Oct, and for Nov 180 cst $1.00 and 380cst -$1.70 with MGO contracts Oct +$.10 and Nov +$1.12 The cargo market is stable with 180 cst +$0.13 380cst -$0.54 and MGO +$0.44.

The Singapore market was closed last Friday on public holiday and reopened today. Bunker fuel oil swaps gained app $6/mt at the front of the forward curve in Singapore papers. Backend was slightly weaker, posting app. $5.5/mt gains. This morning the markets are trading slightly lower.
v Singapore market closed for today

380 cst $630
180 cst $640
MGO $920

ARA (Amsterdam - Rotterdam - Antwerp)

High sulfur bunker fuel oil premiums for prompt delivery in Rotterdam remain firm on ongoing delays at some loading installations and despite ample supply in the ex-wharf barge market. Premiums for prompt can reach $3/mt to $10/mt above normal bunker quotes. LSFO avails are good.

Rotterdam

Indications for delivered bunkers:

380cst : $ 604
(1.0 %) :$ 642
180cst: $ 634
(1.0 %):$ 672
MGO 0.1%S: $962