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Oil prices at ICE and NYMEX have surged in early-afternoon trading surpassing several resistance lines. On the one hand, the recovering euro provided some impetus. On the other hand, there might have been some momentum from the suggestion of an intervention in Syria, uttered by Israel's President Shimon Peres in front of the European Parliament today. According to reports, Peres said the Arab League needed to end the "massacre" in Syria. In the early hours of US trade the WTI thus rose to over 93.00 dollars while the Brent briefly traded above 111.00 dollars.

In Monday morning’s session, oil futures at ICE and NYMEX were edging lower, testing there downward potential. The North Sea crude particularly traded down in this phase, breaching first support levels since the supply situation of the North Sea crude has become more comfortable after transportation and production problems at the Brent pipeline were fixed last week. Moreover, worse-than-expected economic data released out of China at the weekend also weighed on crude prices as well as the euro’s steep downward correction on Friday, which still favoured profit-taking from long positions yesterday. Compared to the crude benchmarks, WTI and Brent, product futures were initially edging higher and only in the afternoon did they start to trade down as well. Due to thin news throughout the day, oil prices were geared by the stock and forex market. Downward potential was, however, limited by the softer dollar and the rising stock market in the evening. When traders covered some spread bets, WTI even took a leap and closed with small gains. The other futures at ICE and NYMEX had incurred some losses at the close of trading.

ICE Gasoil contract for March delivery settled at 925.00 USD on Monday. This was +0.50 USD above Friday's settlement. With some 19,000 deals the traded volume was far below average.

The Stochastic’s lines have crossed at the Brent and G.Oil chart this morning, triggering a selling signal. Furthermore, the stochastic’s bullish constellation at the WTI chart is more and more losing its effect as the indicator’s lines are converging. The RSI is rather neutral at the moment. Due to the selling signal for Brent and G.Oil this morning, we assume a rather bearish stance today and currently expect a higher tendency to profit-taking than for upward tests given the technical constellation.

U.S.

Nymex losing: Due to profit-taking with the Nikkei 225, the oil market is currently trading down but still lacks fresh signals to give direction. Traded volume at NYMEX is above average for this time of day. Investors are now waiting for the European market to open, for fresh signals from forex trading as well as for the monthly reports of OPEC and EIA and some economic data to be released today.

Houston (ex-wharf indications 12-03)
380cst $615
180cst $658
MGO $1017

New Orleans (ex-wharf indications 12-03)
380cst $616
180cst $663
MGO $1016

Singapore (correct as of 1430hrs LT - delivered indications)

WTI is looking for direction, hardly moving with +$0.08. Paper for Mar is not moving either with 180cst +$1.75 and for 380cst -$0.50, and Apr contracts with 180cst +$0.75, 380st -$0.25. The cargo market is waiting on other indicators to decide on which direction to move on 180cst +$0.99, and 380cst dropped -$2.16 and MGO -$0.81.

The Singapore fuel oil market was assessed to be mixed around parity during the Platts window yesterday. The 180cst cargo price rose app.$1.0 while the 380cst cargo prices fell around $2.0. The market seems to be coming out of a supply overhang to getting tighter moving forward. The fundamentals are shifting from a softer to a firmer market. This is reflected in a stronger buying activities and also higher cargo premiums forward. The delivered bunker premiums were around $5.0 above cargo prices yesterday. This morning the markets are trading slightly higher.

High premiums for prompt deliveries.
380 cst $628
180 cst $635
MGO $910

Fujairah (delivered indications 12-03)
380cst $640
180cst $685
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam remained quiet . Bunker fuel values softened slightly as there was enough fuel oil on the market and not much shipowner interest. As a consequence. Loading problems slightly improved, however, those loading at Vopak terminal reported some operational delays for prompt deliveries. In Antwerp not many problems reported.

Indications for delivered bunkers:
380cst : $ 603
(1.0 %) :$ 628
180cst: $ 630
(1.0 %):$ 659
MGO 0.1%S: $ 900