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Brent crude rose above $105 per barrel on Monday as plans to stimulate Japan's economy lifted stock markets, but the oil benchmark remained near an eight-month low on worries over global economic growth and fuel demand. The Bank of Japan (BoJ) has promised to inject $1.4 trillion into the economy in less than two years and economists expect the huge monetary stimulus to support assets such as oil and other commodities. But deepening recession in parts of Europe, tepid expansion in the United States and slower-than-expected growth in emerging economies have all curbed oil consumption this year, helping fill oil inventories and keeping a lid on prices. Brent futures for May rose $1.23 per barrel to a high of $105.35 on Monday, before easing back to trade around $105.10 by 1040 GMT. U.S. light crude oil was up 75 cents at $93.45 after logging its biggest weekly loss in more than six months.

Oil prices in London and New York had already tested their downward potential Friday morning but supports still proved to be strong at this point. The technically and fundamentally bearish signals added to the selling pressure that arose with the first figures on the North Sea crude embarkment program for May. As shipments are to increase by 70,300 barrel compared to April, oil futures breached their first support. However, traders still remained somewhat reserved, waiting for the official U.S. job market statistics to be released at 2.30p.m. The figures of new hires were rather disappointing and despite the fact that the unemployment rate dropped by 0.1%, market players considered the data as bearish. In the course of U.S. trade, selling pressure further increased and weighed on the oil market until the late evening. Brent' and G.Oil's front-month contracts fell to their lowest since July 2012, losing 5.5% and 4.25%, respectively, last week. In contrast to the North Sea crude, WTI suffered less losses (4.6%) and so the spread between the two crude benchmarks has narrowed to 12 USD Friday night.

ICE Gasoil contract for April delivery settled at 880.00USD on Friday. This was 3.50 USD above Thursday's settlement. With some 42,000 deals the traded volume was below average.

The Stochastic’s bearish influence is gradually decreasing for ICE as well as for NYMEX futures because its both lines are converging. Moreover, the technical indicators signal an oversold market situation, which would favour an upward correction if buying signals were triggered. Although bullish signals are still lacking, the heavy losses of the past trading days are indicative for a counter-reaction. Thus, traders could take some profits from their short positions. Given the Stochastic’s declining bearish influence, we assume a rather neutral stance this morning.

U.S.

Nymex bearish: As the euro had gained some ground on Friday and the Nikkei 225 was trading up in early Asian trading today, further downside at the oil market is limited this morning and as a result, oil futures at ICE and NYMEX firm up.
The traded volume at NYMEX is on average for this time of day. Market players now look ahead to the performance of European markets, to new cues from forex trading and to some economic indicators on the agenda today.

Houston (ex-wharf indications 05-04 )
380cst $603
180cst $658
MGO $990

New Orleans (ex-wharf indications 05-04)
380cst $603
180cst $641
MGO $990

Singapore (correct as of 14:30 hrs LT - delivered indications)

Crude is waiting for new indicators, staid neutral with +$0.30. The paper market is also waiting, with April 180cst staying neutral +$0.25 and for 380cst +$0.35, and May contracts with 180cst -$0.25, 380st -$0.35 and the cargo market 180cst +$0.36, and 380cst -$0.00 and MGO -$0.94.

The Singapore fuel oil markets managed to stay flat to +$0.5 during the morning Platts window last Friday. The Asian Fuel Oil crack narrowed as fuel oil values lagged behind the sharp fall in crude. The delivered bunker premiums were seen around $9.25 above cargo prices.Singapore papers were seen app.$1/mt stronger along the curve. This morning the markets are trading higher.

High premiums for prompt deliveries.
380 cst $614
180 cst $620
MGO $890

Fujairah (delivered indications 08-04)

380cst $622
180cst $670
MGO $1005

ARA (Amsterdam - Rotterdam - Antwerp)

Prompt deliveries were not possible from most of the suppliers last couple of days as barges have been already fully committed for earlier deliveries. Supplies were also interrupted by loading delays at some refineries and/or storages. Especially HSFO seems to be a problem at the moment for prompt enquiries.

Indications for delivered bunkers:
380cst : $604
(1.0 %) :$ 615
180cst: $ 634
(1.0 %):$ 635
MGO 0.1%S: $ 885