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Technical indicators: neutral immediate term / neutral to bearish medium term

Oil prices have edged higher in the morning as a less-than-expected drop of the Japanese GDP has slightly supported stock exchanges. Currently, however, oil futures pull back from their intraday highs. Investors look ahead for economic data regarding the US housing market and the manufacturing sector, to be published in the afternoon.

After edging a bit lower in electronic Asian trading, oil prices recovered in Europe , breaching various resistance lines in the process, on a weaker dollar and the strong performance of European equities. When economy data showed that U.S. retail sales posted their biggest gains in three months and Wall Street surged in the track, oil futures got additional support, although this was partly overshadowed by a slump in consumer confidence.

ICE gasoil for August delivery settled at 917.00 dollars on Friday. This was 12.50 dollars above Thursday's settlement. With some 78,700 contracts the traded volume was significantly above average.

The stochastic indicator stays slightly bullish, but is abut to enter overbought territory. The RSI at the Brent and WTI chart has not yet breached the 30% line, the one at the gasoil chart is about to do so. Even though the Stochastic's buying signals are a few days old, technical analysts see the short-term uptrend intact. The first support for the WTI crude is seen at 84.00 dollars, its first resistance at 87.40 dollars. The Brent's first resistance is seen at 109.15 dollars, its first support is at 106.85 dollars.

U.S.

Nymex Access gaining: Oil futures cling to their gains posted on Friday in Asian trading and Globex electronic trading this morning as positive signals from Asian stock markets and big gains in U.S. retail sales lend support. The Brent hovers above 108.00 dollars after having slumped to below 99 dollars beginning of last week. The traded volume is about on average.

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

Crude is slowing with WTI +$0.68. Singapore paper is mirroring crude, gaining with +$4.15 for 180cst and +$4.50 for 380cst for Aug, and for Sep 180 cst +$4.00 and +$4.75 for 180cst with MGO Aug contracts at +$0.61 and for Sep at +$0.60. The cargo market is in line with crude and paper, gaining with 180cst +$4.72, 380cst +$3.36 and MGO +$0.31.

The Singapore fuel oil markets were up $3.00- 5.00 last Friday tracking crude during the Platts window. The delivered premiums slipped to around $13.5 above cargo prices last Friday as buyers retreated on higher outright prices. The recent higher delivered premiums were due to the congestion in the loading terminals. Bunker fuel swaps closed the week with gains ranging $5.50-7.75/mt along the curve with gains slightly more pronounced at the front of the forward curve. Singapore papers were slightly stronger that Rotterdam barges bringing East/West above $ 30.00 at the front of the curve. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $642
180 cst $649
MDO $908

Fujairah (delivered indications 12-8)

380 cst $665
180 cst $701
MDO $1075

Rotterdam

Indications for delivered bunkers:

380cst : $ 613
(1.0 %) :$ 645
180cst: $ 638
(1.0 %):$ 671
MGO 0.1%S: $ 931