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Oil prices pushed higher this morning, as France launched air strikes in Syria against the Islamic State (ISIS) following a series of coordinated attacks in Paris on Friday.

Oil prices at ICE and NYMEX traded in a very narrow range in Asia in a fundamentally bearish market even though the technically oversold market situation spoke for an upward correction. Consequently oil prices rose at the beginning of European trading, breaching their first short-term resistance lines. The Stochastic indicator gave a buying signal at the Brent chart that accelerated oil's rise. Still, as the Brent contract for December delivery expired Friday night, the technical signals were slightly distorted and no price rally was triggered as the indicator has not produced similar signals at the gasoil and the WTI chart. The IEA in its latest energy report left unchanged its own forecast for global oil demand in 2016 and estimates that the record levels of oil stocks around the globe keep weighing on the oil market. Oil prices thus retreated from their intraday highs after the release of the report. In a fundamentally bearish market the futures breached several support lines, falling well below their previous day's lows which tempted traders to liquidate some of their long positions. The latest Baker Hughes report showing a surprise increase in the number of active U.S. oil rigs, even though small, applied additional pressure on oil while the rising risk premium after the terrorist attacks in Paris lent support. Still, oil futures settled quite lower in London and New York.

ICE Gasoil contract for November delivery settled at 426.25 USD on Friday, this is 5.00 USD below Thursday's settlement. With some 82.900 deals the traded volume (front month) was well above average.

The Stochastic could trigger fresh buying signals at ICE and NYMEX should its two lines cross. Such a bullish signal would trigger a strong upward correction as not only the Stochastic but also the RSI are at the oversold level on all charts. In addition to that the WTI and the Brent settled below the lower Bollinger band on Thursday and Friday which makes an upward correction more likely. Yet the existing uptrends that are limited by the 7-day MA lines are still intact. As long as the Stochastic does not trigger any fresh buying signals we consider the technical constellation as neutral this morning.

U.S.

Nymex is above average: Oil futures traded higher but held still below their Friday morning levels this morning in East-Asia on short covering but also supported by an increase in the risk premium on oil after the terrorist attacks in Paris. In the course of Globex electronic trading prices retreated from their early highs. The traded volume at NYMEX is well above average this morning. Investors are waiting for the European financial and forex markets to open today and for the release of a few economic indicators.

Houston (ex-wharf indications 16-11)
380cst $212
180cst $291
MGO $474

New Orleans (ex-wharf indications 16-11)
380cst $225
180cst $270
MGO $458

Singapore (delivered indications 16-11)

Brent is losing with -$0.92 for December contracts. Singapore paper is down with -$3.75 for 180cst with -$3.75 for 380cst for Dec, and for Jan 180 cst -$4.25 and 380cst with -$4.25 with MGO contracts Dec down with -$0.94 and in Jan with -$0.91. The cargo market is bearish with 180cst -$4.47, 380cst with -$4.18 and MGO with up -$0.62.

380cst $220
180cst $230
MGO $426

Fujairah (delivered indications 16-11)

380cst $229
180cst $269
MGO $605

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $198
MGO 0.1%S: $388