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Crude oil prices slipped but held higher than $91 per barrel Monday as economic data from China was considered bearish. China said growth in its industrial production slowed to its weakest level since 2009 for the first two months of 2013. On the New York Mercantile Exchange, West Texas Intermediate crude oil shed 22 cents to $91.63 per barrel. ICE Gasoil contract for March delivery settled at 924.50 dollars on Friday. This was 6.50 dollars below Thursday's settlement. With some 33,800 deals the traded volume was far below average.

Oil futures started by testing their upward potential on Friday, But after breaching their first resistances, the bounced off them at 111.40 USD (Brent) and at 91.80 USD (G.Oil). As a result, traders locked in considerable profits and covered their long positions. Especially Brent displayed enormous downward potential on Friday since bottlenecks in the North Sea are declining as maintenance works have come to an end. Consequently, the North Sea crude breached several support lines, leading to a lot of technical selling orders. When the U.S. job market data had been released, market volatility increased in the afternoon. The figures turned out even better than anticipated given that in February, more new jobs had been created than expected and even unemployment rate had surprisingly declined. In anticipation of rising demand, the data initially supported the oil market. But as the dollar surged after the figures had been released, the supportive effect vanished. Consequently, prices were consolidating with strong fluctuations to the top as well as to the bottom. In the end, the bullish tendency dominated and prices edged slightly higher in the evening. WTI could benefit more from U.S. job market figures than Brent. Thus, the spread between the two benchmarks further narrowed to below 19 USD.

The stochastic oscillator is still neutral for Brent and G.Oil this morning as the indicator’s lines have converged. The indicator still is only slightly bullish for WTI, however, the buying signal already dates a few days back. Moreover, the RSI also remains neutral but is already touching the 30%-line. Given the lack of fresh signals this morning, we assume a rather neutral stance today.

U.S.

Up until now, oil futures have traded within a narrow range this morning as the market lacks fundamental and technical signals to give direction. The traded volume at NYMEX is slightly below average for this time of day. Traders are waiting for the European markets to open and for signals from forex trading. The German trade balance is the only indicator on the agenda today.

Houston (ex-wharf indications 11-03)
380cst $617
180cst $659
MGO $1019

New Orleans (ex-wharf indications 11-03)
380cst $616
180cst $662
MGO $1018

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

WTI is neutral +$0.04. Paper for Mar neutral to bearish with 180cst +$0.25 and for 380cst -$0.50, and Apr contracts with 180cst -$1.00, 380st -$1.35. The cargo market is waiting on other indicators to deside on which direction to move on 180cst +$0.10, and 380cst dropped -$0.37and MGO +$0.17.

There were no significant changes in prices in the Singapore fuel oil market during the Platts window last Friday. The latest Singapore heavy residual inventory reported a draw of -1.8 mbbl to 20.0 mbbl. The delivered bunker premiums were seen app. $5.0 above cargo prices. This morning the markets are trading slightly higher.

High premiums for prompt deliveries.
380 cst $630
180 cst $640
MGO $910

Fujairah (delivered indications 11-03)

380cst $640
180cst $695
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam remained quiet . Bunker fuel values softened slightly as there was enough fuel oil on the market and not much shipowner interest. As a consequence. Loading problems slightly improved, however, those loading at Vopak terminal reported some operational delays for prompt deliveries. In Antwerp not many problems reported.

Indications for delivered bunkers:
380cst : $ 608
(1.0 %) :$ 638
180cst: $ 638
(1.0 %):$ 669
MGO 0.1%S: $ 915