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Oil prices initially edged slightly lower this morning within their trading range. After the ICE Brent had pulled back from its first support at 110.80 dollars, the other contracts have turned bullish somewhat again. The weaker equities and retreating Euro added to the still slightly bearish technical constellation at the Brent and the WTI charts have additionally weighed on these contracts. The producer price index for the euro zone, published in the course of the morning, had but little impact on oil markets. The oil market started softer on Friday after the FOMC minutes revealed that U.S. central bankers are already thinking about terminating the bond-buying programme in 2013. Market participants fear that the supporting signals could choke off economic recovery and thus weigh on oil demand. During the first half of the day, profit-taking consequently dominated but key supports at 91.40 dollars WTI and 110.30 dollars Brent were not hit, with WTI stopping at 91.55 dollars. Market sentiment turned after WTI bounced off this support and U.S. job market data were better than exepcted. In the late afternoon, the DoE data gave new momentum to the market but as the data was rather mixed, it didn't provide a trend-setting signal. The figures were difficult to read since there were bullish as well as bearish indications and the data presumably was distorted due to inventory shifts for accounting purposes at the turn of the year. In the end, Brent and WTI stayed within their technical trend channels. Merely G.Oil briefly traded down, escaping its rangebound consolidation, but still closed at the opening price.

ICE Gasoil contract for January delivery settled at 928.50 dollars on Friday. This was 7.25 dollars below Thursday's settlement. With some 37,800 deals the traded volume was below average.

This week starts with no new signals in the technical view. The stochastic oscillator remains neutral for G.Oil while it is rather bearish for Brent and WTI. From a technical perspective, this indicates new downward tests in the course of the day. But the support lines of WTI's and Brent's steep trend channels will probably limit downside. If they were breached, however, automatic stop-loss selling orders could be triggered. The RSI for Brent also indicates a selling signal in case the 70%-line is crossed top-down.

U.S.

Nymex Access bearish: With the opening of Asian trading and a soft euro, oil futures at ICE and NYMEX are slightly retreating in early trading this morning. Trading interest at NYMEX is above average for this time of day. Traders are waiting for the European market to open. There is hardly any economic data to be released today.

API: Crude oil -12.0; distillates +6.7; gasoline +3.3 million barrels vs previous week.
Doe: Crude oil -11.1; distillates +4.6; gasoline +2.6 million barrels vs previous week.
Survey: Crude oil -1.5; distillates +1.6; gasoline +1.4 million barrels vs previous week.

Houston (ex-wharf indications 04-01)
380cst $637
180cst $681
MGO $1004

New Orleans (ex-wharf indications 04-01)
380cst $645
180cst $688
MGO $999

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

WTI is gaining still with +$0.75. Paper for Jan are easing with 180cst -$1.75 and for 380cst -$1.05 , Feb contracts were trading lower as well with 180cst -$2.25, 380st -$3.50. The cargo market is turning bearish as well with 180cst -$2.50, 380cst -$0.17 and MGO +$0.30.

The Singapore markets rose more than $10.5 during the Platts window last Friday despite the weaker crude movement. The extreme strong buying of Fuel Oil swaps lifted Asian cracks significantly. The delivered bunker premiums were seen app.$4.0 above cargo prices last Friday. Bunker fuel oil swaps lost app.$2/mt at the front of the forward curve. Backend was significantly weaker, assessed down by more than $5/mt. This morning markets are trading slightly down.

High premiums for prompt deliveries.
380 cst $628
180 cst $635
MDO $935

ARA (Amsterdam - Rotterdam - Antwerp)

In general there are good stocks of products and availability of barges reported. However there are some suppliers stating they are fully booked till 07/01. This is the same for Antwerp and Rotterdam.

Indications for delivered bunkers:
380cst : $ 612
(1.0 %) :$ 634
180cst: $ 642
(1.0 %):$ 662
MGO 0.1%S: $ 925