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Along with the euro oil prices in London and New York rose on a better-than-expected German gross domestic product. First resistance lines were breached but gains are limited by the strong Brent resistance at 114.30 dollars so that prices retreated from intraday highs.

Oil futures were relatively volatile on Monday morning. Quotations at ICE and NYMEX have already tested their resistance and support lines in early morning trade before they have tested their upward potential, bolstered by a strong euro. With the common currency gaining some ground on a better than expected Greek GDP, oil futures have breached their first resistance lines. As there were no decisive fundamental news, traders seized the high level of prices to take some profit in the early afternoon after the resistance lines at 966.00 dollars for the Gasoil and at 115.00 dollars for the Brent remained strong. Given the scant supply in Europe, the Brent has climbed to a new 3-month high. As the WTI has not advanced as much as the Brent, the spread between the two benchmark blends has temporarily widened to some 21 dollars. This spread has only slightly narrowed in the second half of the day on some profit taking, whereas oil markets remained volatile. Supports at 953.25 dollars (Gasoil) and 92.15 dollars (WTI) have limited losses later in the days.

ICE Gasoil contract for September delivery settled at 957.25 dollars on Monday. This was 2.25 dollars above Friday's settlement. With some 70,400 contracts the traded volume was above average.

The stochastic indicator is bearish at ICE and NYMEX charts, while the RSI is still in the overbought zone but does not give any additional selling signal for the time being, see also technical analysis. According to technical analysts, such a signal will only be created if the RSI crosses the 70%-line top-down. Therefore analysts still assess the situation as only slightly bearish. The constellation at the charts might prompt investors to take some profit but recent uptrend channels have remained intact up to now, limiting the downward potential.

U.S.

Nymex access gaining: Oil futures have traded sideways in a rather narrow range near Monday's settlement prices in East-Asia and on Globex electronic trading platform this morning. The traded volume is on average. Investors now look ahead to the performance of stock and forex markets and today's economic indicators. Later in the evening, the API is going to release its weekly data on US oil stocks.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE).
Crude oil -2.0; distillates -0.1; gasoline -1.4 million barrels vs previous week.

Houston (ex-wharf indications 13-8)

380cst $643
180cst $674
MGO $990

New Orleans (ex-wharf indications 13-8)

380cst $645
180cst $677
MGO $1000

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

Crude is slowing, but gaining still with WTI +$0.26. Singapore paper is more bullish with +$4.75 for 180cst and +$4.75 for 380cst for Aug, and for Sep 180 cst +$5.75 and 380cst +$4.35 with MGO contracts Aug +$0.58 and Sep +$0.45. The cargo market is up only slightly with 180cst +$1.07, 380cst +$0.53 and MGO +$0.06.

The Singapore fuel oil market prices rose marginally +$0.5 to $1.0 during the morning Platts window yesterday tracking crude movements. The latest Singapore inventory shows ample supply with another build. The strong supply eased the fuel oil backwardation curve. The delivered bunker premiums were around $6.00-7.00 above cargo prices. Bunker fuel oil swaps gained app. $4.5-3.5/mt along the curve. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $655
180 cst $668
MGO $960

ARA (Amsterdam - Rotterdam - Antwerp)

After last week's bullish end, the week continued with the bullishness. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 640
(1.0 %) :$ 702
180cst: $ 684
(1.0 %):$ 747
MGO 0.1%S: $955