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Oil prices consolidated in electronic morning trading but started to edge lower around noon when European equity markets dropped on Euro zone worries and the safe-haven dollar regained ground after Wall Street fell at the opening. The worsening Euro-zone debt crisis and rumours that ECB chief economist Jürgen Stark was going to resign weighed on the single currency and helped the dollar up as a consequence when investors shunned risky assets. Short-term support lines were breached and oil prices fell to intraday lows, hitting the lower limits of their medium-term uptrends. Oil prices are weighed down in electronic morning trading by little encouraging data from China. Chinese crude oil imports in August were unchanged from a year ago, when the countryie's oil demand was expected to have grown. Expectations of Libyan crude flowing back into the markets in the medium term also weigh on prices. ICE futures breached first support lines in the process. Oil futures edged lower in East Asia and Globex electronic trading this morning, weighed down by dollar strength when investors sold the euro on risk aversion. The traded volume is on average.

The euro hit a six-month low against the U.S. dollar and a 10-year trough versus the yen, falling below key technical levels and option barriers on worries that the euro zone's support for Greece is wobbling and the country may be forced to default on its debt. The outlook for Greece is almost completely unknown. Support for the country appears to be shaking. The market is starting to think the worst could happen, so analysts. Fears about a Greek default rose after senior politicians in German Chancellor Angela Merkel's centre-right coalition started talking openly about it. This came on top of Juergen Stark's surprise departure at the European Central Bank last week, which has highlighted major disagreement among top policymakers on how to tackle the region's debt problem.

The euro is currently selling at 1,3549 dollars after hitting 1,3535 dollars, its lowest since 15th February. In late New York trading Friday, the euro stood at 1,3649 dollars. The Stochastic indicator is still strongly oversold but is giving slightly bearish signals. The single currency has support at 1,3495 dollars, 1,3425 dollars and 1,3380 dollars. Resistances are at 1,3620 dollars, 1,3725 dollars and 1,38 dollars.

ICE Gasoil contract for September delivery settled at 939,50 dollars on Friday. This was 27,50 dollars below Thursday's settlement. With some 33.700 contracts the traded volume was on average. As the contract expires today, the new front month October is much more actively traded.

North Sea oil loading in October

• Oil loading from the Oseberg field seen +600.000 barrels vs previous month at 5.4 mill barrels
• Oil loading from the Forties field seen -600.000 barrels vs previous month at 13.8 mill barrels

The semi-autonomic region of Kurdistan unexpectedly halted oil shipments on Sunday for technical problems, according to the Iraqi oil minister. Experts assume that cash flow problems of the Iraqi government are the real reason for the disruption. Kurdistan supplies approx. 180.000 barrels of crude a day.

Tropical Storm Nate lost strength and was downgraded to a tropical depression over the weekend after he moved on westward and made landfall in Mexico. Oil companies restaffed the evacuated platforms and production is back to normal. Tropical storm Maria should not pose a danger to oil installations. For the path of Maria, please see our Hurricane center .

U.S.

Nymex Access losing: Oil futures edged lower in East Asia and Globex electronic trading this morning, weighed down by dollar strength when investors sold the euro on risk aversion. The traded volume is on average.

Houston (ex-wharf indications 9-9)

380cst $634
180cst $678
MGO $970

Very tight avails for 180 cst

New Orleans (ex-wharf indications 9-9)

380cst $637
180cst $681
MGO $974

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

Crude is losing more as the dollar strengthened majorly in relation to the euro with WTI -$3.02. Singapore paper is resultingly losing sharply with -$23.80 for 180cst and --$23.50 for 380cst for Sept, and for Oct 180 cst -$24.25 and 380cst -$23.80 with MGO Sept contracts at -$4.50 and for Oct at -$4.27. The cargo market is just starting to lose again although the drops have not built up the same momentum yet with 180cst -$4.12, 380cst -$2.97 and MGO -$0.90.

The Singapore fuel oil markets fell by more than $3.0/mt during the Platts window last Friday. The Singapore heavy residual inventory dipped by 0.54 mbbl to 21.0 mbbl. The delivered bunker premiums hovered around $6.00/mt above cargo prices last Friday. Front month bunker fuel swaps lost more than $22/mt both for Rotterdam and Singapore papers.

High premiums for prompt deliveries.

380 cst $640
180 cst $652
MDO $925

Fujairah (delivered indications 12-9)

380cst $650
180cst $673
MGO $1040

Rotterdam

Indications for delivered bunkers:

380cst : $ 625
(1.0 %) :$ 647
180cst: $ 646
(1.0 %):$ 668
MGO 0.1%S: $ 930