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Oil prices took their cues from a report in the United States at the end of last week that showed consumer sentiment at its weakest in a year as a result of the uncertainty surrounding the country's debt crisis. Concerns about demand overshadowed supply disruption fears reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries. Brent futures were down by 17 cents to $111.72 per barrel by 1030 GMT. U.S. crude shed 40 cents to $95.16 per barrel after touching a four-month high last week.

With a fundamentally and technically bullish basis, the oil market started stronger on Friday and tested first resistances. In early trading, oil prices were supported by positive economic data out of China and the IEA's monthly report, which had revised its oil demand prognosis upwards for 2013. But after bouncing off the resistances at 960.00 dollars G.Oil and 111.50 dollar Brent, oil futures started to correct downwards, together with the retreating euro and softer stock market. This correction was, however, not sustainable due to the generally bullish tendency. Brent reached its day's low at 110.47 dollars in the early afternoon, while G.Oil could not sustainably breach its support at 953.50 dollar. The annual consumption statistics 2012 released in the afternoon as well as the Michigan consumer sentiment index were bearish. But the figures merely had an impact on the WTI price, favouring profit-taking from speculative spread bets. While the other futures tested their upward potential late in the evening, breaching the hitherto strong resistances and hitting new day's highs, WTI clearly stayed below its first resistance at 95.75 dollar.

ICE Gasoil contract for January delivery settled at 955.75 dollars on Friday. This was 3.25 dollars below Thursday's settlement. With some 48,300 deals the traded volume was only slightly below average.

There were no fresh signals this morning. Both technical indicators, the RSI and the stochastic, are still neutral but could turn bearish if the RSI fell below the 70%-line and if the stochastic's line crossed. The stochastic is still bullish for Brent but as the buying signal dates back a few days and indicates an overbought market situation, the technical view is to be seen largely neutral. If the above mentioned selling signals arised for WTI and G.Oil in the course of the day, prices may test Friday's lows. If they slipped below this level, prices could hit their supports at 109.75 dollar Brent and 93.05 dollar WTI.

U.S.

Nymex Access neutral : Given Friday's late upside, traders can take small profits early this morning. Trading interest at NYMEX is slightly below average for this time of day. Traders are waiting for the European market to open and for signals from forex trading. The German producer price index is the only economic data to be released today. Public holiday in US today.

Houston (ex-wharf indications 18-01)
380cst $632
180cst $705
MGO $1030

New Orleans (ex-wharf indications 18-01)
380cst $640
180cst $678
MGO $1025

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

WTI is neutral with -$0.17. Paper for Jan are slightly bullish, rising with 180cst +$1.00 and for 380cst +$2.00 , Feb contracts are rising as well with 180cst +$1.40, 380st +$1.90. The cargo market is reacting bullish, rising with 180cst +$7.94, 380cst +$7.58 and MGO +$1.10.

The Singapore fuel oil market prices rose by another $8.0 during the morning Platts window last Friday. Market is still currently weak with ample supply. The 380cst cargo premiums softened to a 5 week low. The delivered bunker premiums were around $3.5 above cargo prices last Friday. Bunker fuel oil swaps were up app$3.5/mt at the front of the forward curve for Singapore papers. Backend was slightly weaker, assessed app. $1.5/mt up. This morning the markets area trading higher.

High premiums for prompt deliveries.
380 cst $637
180 cst $644
MDO $947

ARA (Amsterdam - Rotterdam - Antwerp)

There were a few suppliers who were unable to supply for prompt deliveries due to busy schedules. The port of Rotterdam and Antwerp are experiencing difficulties with LSFO for prompt deliveries due to operational delays. Due to the tightness of LSFO in Antwerp the premiums are expected to be higher.

Indications for delivered bunkers:
380cst : $ 616
(1.0 %) :$ 645
180cst: $ 646
(1.0 %):$ 675
MGO 0.1%S: $ 958