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Brent crude oil futures fell 1% in trading Tuesday amid cautious investor sentiment and fears about the health of the global economy, analysts said.

Trade at ICE and NYMEX was rather subdued on Monday morning and oil futures did not mark any larger price jumps in the course of the day either. After having tested their downward potential several times in the morning, quotations gained some ground in the afternoon breaching - at least the futures at ICE - a first short term resistance. Some positive Chinese economic data and the country's higher oil imports published last weekend and the exacerbating tensions in the Near East have supported oil prices but on the downside reports on several country's plans to increase the production capacities, the sluggish economic growth in Europe and the USA, as well as the lower Japanese GDP that has decreased by -0.9% in the third quarter compared to the second quarter. The factors largely offset each other and so the WTI crude remained within its technical range from 85.40 and 86.30 dollars. Due to the Veteran's Day in the USA, the traded volume was rather low. But even though trading places were all open yesterday, some traders took the day off and will only return to work today. In all, oil futures consolidated sideways whereas late in the evening investors tended to take profits. Therefore prices settled with marginal losses.

NEWS: After the fights between the Syrian opposition and governmental troops in the north of the country have lead to tensions between Syria and Turkey Israel has advised the Syrian government to retain in the border areas. This is against the backdrop of a mortar strike into the Israeli-occupied Golan Heights Israel has responded to by firing on Syrian artillery. Israel's military forces were instructed to prevent that Syrian battles spread to Israeli territory, the country's defence minister Ehud Barak said warning of a tougher reaction in case there are more such incidents. Israel had annected the Golan Heights in 1981.

ICE Gasoil contract for December delivery settled at 936.75 dollars on Monday. This was 8.25 dollars above Friday's settlement. With some 85,200 deals the traded volume was far above average.

The lines of the stochastic indicator have slightly crossed at the charts of ICE and WTI crude. Therefore it is currently interpreted as bullish, while the RSI is still in the neutral zone, far from giving any crucial signals. Inspite of the stochastic's buying signal we do not expect that oil futures will rise sharply today and assess the situation as neutral, given the still strong resistance lines that limit gains (particularly those of the WTI crude).

U.S.

Nymex Access bearish: Oil prices have edged lower in East-Asia and on Globex electronic trading platform this morning. They have tested their downward potential, with the WTI crude even falling below yesterday's low. The traded volume is far above average. Market players now eye of the performance of stock markets, new clues from forex trade and the release of the ZEW's indeces for the EU and Germany.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30 (DOE).
Crude oil +1.6; distillates -0.3 ; gasoline +0.4 million barrels vs previous week.

Houston (ex-wharf indications 12-11)

380cst $609
180cst $703
MGO $1010

New Orleans (ex-wharf indications 12-11)

380cst $608
180cst $703
MGO $1020

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

Singapore fuel oil markets also strengthened on Monday, up more that $13/mt during morning Platts window. The physical viscosity between 180 and 380cst grades has been narrowing, assessed slightly above $11/mt on Monday. Singapore market is closed today for public holiday and will reopen tomorrow. This morning the markets are trading down.

Indications 12/11

High premiums for prompt deliveries.
380 cst $605
180 cst $615
MDO $920

ARA (Amsterdam - Rotterdam - Antwerp)

Although there are still a lot of waiting times at the loadinginstallations for HSFO, the avails for HSFO and LSFO are good.

Indications for delivered bunkers:
380cst: $585
(1.0 %): $610
180cst: $615
(1.0 %): $640
MGO 0.1%S: $925