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Crude oil prices fell on Friday in Asia with the focus on demand prospects from major importers like China as the U.S. recovery shows renewed signs of strength.

After Wednesday's increase, the strong dollar had a bearish effect on oil prices at ICE and NYMEX on Thursday morning as expected. The US dollar-denominated oil futures get more expensive for traders outside the United States due to the strong dollar. These traders use such situations to take profits form their long positions. Therefore, the futures already eased on Thursday morning breaching their first short-term supports. In the course of the day no clear direction was obvious but in general oil futures tended to the downside. Analyst Tim Evans at Citi Futures says, that US economic data was convincing but market players were rather focusing on the bearish influence of the strong dollar than on the supporting influence of the US GDP of the third quarter which increased stronger than expected. Profit taking continued until late in the evening. Even though oil prices regained some ground now and again, they finally settled lower near the level of their intraday lows in London and New York.

ICE Gasoil contract for November delivery settled at 746.50 USD on Thursday, this is 10.50 USD below Wednesday's settlement. With some 52,400 deals the traded volume (front month) was about on average.

The stochastic's buying signals have been completely spent by now and lost their influence. The stochastic indicator's lines at the WTI and the Gasoil chart have met but a bearish signal will just be triggered if they effectively cross. At the Brent chart the lines of the indicator have already crossed and therefore the indicator is to be interpreted bearish for the North Sea crude oil contract. After the alternating signals in the last few days, the selling signal at the Brent chart isn't strong enough to justify a bearish assessment of the technical analysis. Supplementary selling signals are needed e.g. at the Gasoil and WTI chart (stochastic). Since such signals are still missing, we are considering the technical constellation neutral for the time being.

U.S.

Nymex on avarage: Futures at ICE and NYMEX are trading on a low level and hardly changed compared to the levels on Thursday evening. The traded volume at NYMEX is about on average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots and the economic indicators to be released today (see economic calendar).

Houston (ex-wharf indications 31-10)
380cst $465
180cst $560
MGO $841

New Orleans (ex-wharf indications 31-10)
380cst $486
180cst $527
MGO $837

Singapore (delivered indications 31-10)

WTI is losing with -$0.84 Singapore paper is up with -$3.50 for 180cst with -$3.60 for 380cst for Nov, and for Dec 180 cst -$3.10 and 380cst with -$3.10 with MGO contracts Nov bearish with -$0.70 and in Dec with -$0.60. The cargo market is gaining with 180cst -$0.17, 380cst with +$0.20 and MGO with +$0.62.

The Singapore fuel oil prices were mostly flat during the Asian Platts window led by softer crude prices. The latest Singapore heavy residual inventory saw a slight draw of -0.41 mbbl to 20.07 mbbl. The delivered bunker premiums remained around $7.5-6.5 above cargo prices.

380cst $482
180cst $499
MGO $738

Fujairah (delivered indications 31-10)

380cst $490
180cst $525
MGO $942

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $458
(1.0 %) : $468
MGO 0.1%S: $728