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Oil prices plunged this morning, as oversupply concerns remained a factor for oil markets.

Oil futures at ICE and NYMEX struggled to find direction on Friday morning as the technical constellation was slightly bullish, whereas market fundamentals remained bearish. In the first half of the day, oil prices advanced to the levels of the 7-period moving averages but these markers reigned in the price increase, serving as a strong resistance like in the days before. In the afternoon, traders eventually tended to test the downside as fresh cues were lacking. Whilst Brent and Gasoil failed to break below their supports at 44.10 USD and 422.50 USD, respectively, WTI's drop was refrained by the key support at 40.00 USD. Near this level, traders frequently covered their short positions, sending the price of the US crude oil contract back up again, above all because the December WTI contract was to expire on Friday evening. Traders, who had bet on falling prices, cut their short positions. Late Friday evening, the fact that traders tended to cover their short-positions also bolstered the other contracts. However, this didn't trigger a sustainable price increase. Ahead of the weekend and the expiry of the December WTI contract caused some volatility. At last, the bearish cues prevailed and oil futures settled with losses.

ICE Gasoil contract for November delivery settled at 424.75 USD on Friday, this is -2.25 USD below Thursday's settlement. With some 65,800 deals the traded volume (front month) was above average.

Last week, WTI frequently bounced off the 40 USD threshold, briefly climbing back above the 7-period moving average. Even so, the contract settled below this mark, which is why no buying signal was triggered. The January WTI contract has meanwhile broken below last week's lows, generating more downward potential. The lines of the Stochastic indicator have crossed. The indicator can thus be assessed as bearish. Since the December WTI contract expired on Friday, the US crude oil contract is no longer close to the key support at 40 USD. Still, this price level is seen as a landmark that could drag prices down. Brent and Gasoil also briefly broke above the 7-period moving average last week but have meanwhile dropped back below these levels, heading for their supports. If - like at the WTI chart - the lines of the Stochastic indicator cross at the Brent and the Gasoil charts, the technical selling signal would be confirmed, adding to selling pressure. From a merely technical perspective, the constellation can thus be regarded as neutral to bearish.

U.S.

Nymex is above average: Oil futures lost some ground in East-Asia and electronic Globex trade this morning, weighed down by the bearish technical constellation and market fundamentals. They have meanwhile even dropped below Friday's lows. The traded volume at NYMEX is far above average this morning. Market players are waiting for the European financial and forex markets to open today and for the release in the afternoon of a raft of indicators out of the euro zone.

Houston (ex-wharf indications 23-11)
380cst $202
180cst $283
MGO $449

New Orleans (ex-wharf indications 23-11)
380cst $212
180cst $256
MGO $460

Singapore (delivered indications 23-11)

Brent is down with -$0.36 for December contracts. Singapore paper is down with -$2.25 for 180cst with -$2.25 for 380cst for Dec, and for Jan 180 cst -$2.35 and 380cst with -$2.50 with MGO contracts Dec with -$0.45 and in Jan with -$0.47 .The cargo market is bearish with 180cst -$3.36, 380cst with -$3.32 and MGO with up -$0.21.

380cst $218
180cst $230
MGO $419

Fujairah (delivered indications 23-11)

380cst $216
180cst $254
MGO $607

ARA (Amsterdam - Rotterdam - Antwerp)

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