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Crude oil prices rose modestly Monday morning, adding 23 cents to $104.93 per barrel on the New York Mercantile Exchange. West Texas Intermediate crude rose but gains are apt to be held in check this week because of disappointing manufacturing data from China. Reformulated blendstock gasoline was up 0.97 cents $3.013 per gallon. Home heating oil added 2.29 cents to $3.036 per gallon. Last Friday, oil markets marked a decline. Oil futures at ICE and NYMEX already breached several supports in morning trading, when market players cut their long positions betting on falling prices. Investors also reacted to a report released by the Chinese government on Thursday evening, according to which enterprises were told to reduce overcapacities. This fuelled worries over a slower than anticipated growth of the world's second largest energy consumer. The hefty losses US stock markets marked shortly after the open of NYMEX floor trading put some additional pressure on oil prices and so further supports were breached sending oil futures at both trading places to new lows. The better than expected Consumer sentiment index released by the University of Michigan on Friday afternoon was but briefly able to support prices. Despite a slight upward correction in the wake recovering US equities, futures at ICE and NYMEX settled with some losses. WTI even hit a 2-week low at the close. This morning in Asia, oil prices keep declining despite reports on the renewed shut-down of the Kirkuk-Ceyhan pipeline at the weekend.

ICE Gasoil contract for August delivery settled at 910.50 USD on Friday. This was 3.25 USD below Thursday's settlement. With some 31,200 deals the traded volume was far below average.

Technically, there is hardly any change this morning compared to Friday. The lines of the stochastic indicator are parallel at the WTI chart. At the Gasoil and Brent charts, they haven't crossed either. Therefore, the indicator doesn't give any clear signals, for the time being. The RSI is still neutral at all charts. According to analysts, prices are likely to keep moving within their short-term downtrends today. Since technical signals are lacking, we still assess the technical constellation as neutral, however.

U.S.

Nymex neutral: Oil prices have lost some ground in Asian trading this morning as investors have taken some profits. Ahead of the FOMC's meeting on Wednesday, market participants prefer to stay on the sidelines, traders say. The traded volume at NYMEX is far above average for this time of day. Market players are now eying the open of European markets and new clues from forex trading. As to important economic indicators, there are only US pending homesales on the agenda today.

Houston (ex-wharf indications 26-07 )
380cst $587
180cst $669
MGO $1002

New Orleans (ex-wharf indications 26-07)
380cst $587
180cst $631
MGO $1003

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

Crude is bearish with -$0.74. The paper market is bearish still, loosing with Aug 180cst -$0.90 and for 380cst -$1.25, and Sept contracts with 180cst -$1.00, 380st -$0.25. The cargo market is following with 180cst -$2.64, and 380cst -$3.07 and MGO +$0.12.

The Singapore fuel oil market dipped more than -$2.5 on the Platts window last Friday. The market remains ample with supply as the market structure moves steeper into contango. The delivered bunker premiums were maintained around $6.0 above cargo prices.

380cst $596
180cst $599
MGO $910

Fujairah (delivered indications 29-07)

380cst $601
180cst $674
MGO $1040

ARA (Amsterdam - Rotterdam - Antwerp)
Indications for delivered bunkers:
380cst : $600
(1.0 %) :$609
180cst: $630
(1.0 %):$ 639
MGO 0.1%S: $ 898