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After declining last week, oil futures at ICE and NYMEX have corrected upwards this morning. The reason was the RSI’s buying signal for Brent after the indicator sustainably breached the 30%-line bottom-up. Towards noon, prices retreated from their day’s highs after the resistances at 920.75 USD (G.Oil), at 108.00 USD (Brent) and at 98.05 USD (WTI) proved to be strong. After the strong price decline seen at oil markets on Wednesday and Thursday, the session on Friday remained relatively calm. Although the bears dominated market development, with oil prices testing their downward potential, traders focused on consolidating their risk positions and raked in some profits from short coverings ahead of the weekend as distinct bearish signals were lacking. They also closed spread bets again, which is why WTI displayed a stronger tendency than the other contracts, and the difference in prices between the American crude and its European counterpart narrowed again to below 10 USD in late trading Friday. Nevertheless, big price jumps failed to materialize. Thus, ICE futures closed hardly changed, while prices at NYMEX had slightly gained.

ICE Gasoil contract for November delivery settled at 909.75 USD on Friday. This was 1.75 USD below Thursday's settlement. With some 40,500 deals, the traded volume was below average.

The Stochastic is still bullish for WTI, but neutral for Brent and G.Oil as the indicator's lines are touching at both charts. Thus, the Stochastic is no longer bearish. A buying signal, however, will only arise if its lines crossed. At the Brent chart, the RSI is at the 30%-line, but has not yet decisively crossed it yet. The indicator is also not giving off any fresh signals for the American crude contract. Consequently, we consider the technical constellation as neutral this morning. Technical buyings as a correction to last week's price slump would only be triggered if the Stochastic and the RSI were providing new cues in the course of the day.

U.S.

Nymex bullish: While G.Oil and Brent have been advancing in early trading Monday, WTI is slightly correcting downwards after the price increase late Friday. The traded NYMEX volume is below average for this time of day. Market players are now waiting for European markets to open and for fresh signals from forex trading. There are only a few indicators on the agenda today.

Houston (ex-wharf indications 25-10)
380cst $593
180cst $653
MGO $973

New Orleans (ex-wharf indications 25-10)
380cst $598
180cst $648
MGO $976

Singapore

Crude is starting to turn, gaining with WTI +$0.50. Singapore paper is gaining still with +$4.50 for 180cst and +$3.00 for 380cst for Nov, and for Dec 180 cst +$4.55 and 380cst +$3.25 with MGO contracts Nov +$1.25 and Dec +$1.20. The cargo market is not yet responding, losing with 180cst -$2.56, 380cst -$6.09, mgo -1.15.

The Singapore fuel oil markets fell between $6.5 to $2.5 during the Asian Platts window last Friday. The Singapore heavy residual stockpile reported a slight dip to -0.54 mbbl to 20.59 mbbl. The delivered bunker premiums were seen app. $9.5 above cargo prices. Bunker fuel oil swaps lost some $2.0-1.5/mt along the curve for papers. Visco spread strengthened significantly and closed at $10.22/mt on Friday. November is trading at app. $12.50-13.00 while forward prices remain stable trading in a range of $7.25-7.75/mt for cal14. This morning markets are trading higher.

380cst $615
180cst $625
MGO $933

Fujairah (delivered indications 28-10)

380cst $620
180cst $677
MGO $1007

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $584
(1.0 %) :$600
180cst: $615
(1.0 %):$ 630
MGO 0.1%S: $ 890