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Brent crude had hit a nine-month high of just over $119 per barrel on the Chinese numbers, its highest level since last May, but the price dipped by 24 cents on Monday to $118.66 a barrel. U.S. crude futures fell 9 cents to $95.63.

The oil market started without clear direction on Friday, trading sideways in a tight range, however, with a firm tendency thanks to the positive data on the trade balance and increased oil imports in China. Oil prices surged towards noon, breaching first resistances at ICE in face of the strong euro and rising stock market. After technical buying orders were triggered, G.Oil even rose above its third resistance at 1,025.00 USD. As WTI failed at its first resistance, prices held at this level and only received a boost when the positive U.S. trade balance was released. Especially ICE futures received additional support when an ExxonMobil unit declared a Force Majeure regarding exportations of the Nigerian blend Qua Iboe and when Yemen reported a new attack on an important pipeline. Renewed worries on Iran’s nuclear programme simultaneously raise fears of tensions escalating in the Middle East. While Brent has reached a 9-month high at 119.00 USD, WTI failed at its resistance at 96.40 USD, closing with losses on Friday. As maintenance works at U.S. refineries go on, the already abundant inventories in the Mid-West, especially in Cushing, will continue to rise in the weeks to come and prevent WTI prices from recovering. Consequently, the Brent/WTI spread has widened to over 23 USD this morning.

ICE Gasoil contract for February delivery settled at 1,030.75 dollars on Friday. This was 16.25 dollars above Thursday's settlement. With some 32,600 deals the traded volume was above average. As the contract expires tomorrow, traders are increasingly focusing on the new front month March.

Oil markets could get some support from stormy weather in the heavily populated U.S. Northeast, where a blizzard dumped up to 40 inches (1 metre) of snow with hurricane force winds, leaving hundreds of thousands of people without power.

The technical analysis is still giving off mixed signals for ICE and NYMEX futures. While Brent and G.Oil are still strongly overbought and the stochastic also is rather neutral at both charts, the RSI at the WTI chart is already touching the 30%-line and could trigger a selling signals if it were breached. The uptrend at ICE remains intact, providing upward as well as downward potential. WTI is testing its medium-term resistance. Technical analysts expect ICE futures to slightly correct downwards this morning before Brent will target 119.00 USD again.

U.S.

Nymex bullish: Oil futures hold steady at a high level this morning but with a softer tendency. Trading interest at NYMEX is clearly below average for this time of day. Traders are waiting for the European market to open and for fresh signals from forex trading. There are no economic indicators on the agenda today. The Chinese market remains closed today due to New Year's celebrations.

Houston (ex-wharf indications 08-02)
380cst $658
180cst $741
MGO $1078

New Orleans (ex-wharf indications 08-02)
380cst $661
180cst $669
MGO $1085

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

Singapore 380cst delivered product strengthened last Friday, reaching a 19-week high, trading at app.$666.00/mt. Singapore markets are closed for Lunar New Year holiday with no Platts settlements both today and tomorrow. This morning the markets are trading a few dollars down.

High premiums for prompt deliveries.
380 cst $661
180 cst $663
MDO $1000

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam and Antwerp suppliers had difficulties with product availabilities. LSFO is more tight than HSFO. Because of this. the spread between HSFO and LSFO increased from 30$ up to $45 . Some suppliers can not offer for prompt HSFO deliveries.

Indications for delivered bunkers:
380cst : $ 646
(1.0 %) :$ 683
180cst: $ 696
(1.0 %):$ 726
MGO 0.1%S: $ 1020