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Brent oil prices plunged Friday to a new eight-month low, driven by the stronger dollar and weak crude market outlook following a raft of demand forecast downgrades, analysts said. In earlier morning deals, Brent North Sea crude for delivery in May slid to $102.77 per barrel, which was the lowest level since July 2012. It later pulled back to $103.05, down $1.22 from Thursday. New York's main contract, West Texas Intermediate (WTI) light sweet crude for May shed $1.05 to stand at $94.46 a barrel.

Oil futures started with a soft tendency Thursday morning, breaching first supports early on. After the next supports at 886.00 USD (G.Oil), 105.15 USD (Brent) and 94.15 USD (WTI) proved to be strong, oil prices traded up again in the backwash of the strong euro. However, the bullish tendency ebbed at WTI’s and G.Oil’s first resistance. Given the negative outlook of OPEC and EIA regarding oil demand growth and rising U.S. oil inventories, the IEA report, released Thursday morning, rounded out the bearish signals for the oil market yesterday, despite less initial jobless claims in the USA. Investors apparently rely more on forecasts made by renowned agencies than on weekly statistics, which can already be obsolete the next week. Due to the negative market outlook, oil prices again slid below their first support at the opening of NYMEX floor trade, resulting in more technical selling orders. At this point, the oil market had untied from the performance of the stock and forex market. In addition, the slipping dollar vs. the euro could not encourage market players to engage in long positions at the oil market. Traders particularly blamed the NYMEX RBOB gasoline contract, which surged after considerably increased stocks were recorded in the USA, for the heavy price slump. Oil futures breached even more supports in further trading and settled at their day’s lows.

ICE Gasoil contract for April delivery settled at 882.00 USD on Thursday. This was 6.25 USD below Wednesday's settlement. With some 94,800 deals, the traded volume was far above average.

This morning, the Stochastic oscillator is neither bullish at ICE nor at NYEMX charts as its both lines are converging again and could trigger technical selling orders if they crossed. The RSI still indicates an oversold market situation and has detached from the 30%-line and thus, a potential buying signal is very unlikely. The steep, short-term downtrend at ICE charts remains intact. Given the oversold market situation and yesterday’s heavy price slump, we expect a slight upward correction today before prices continue to trade down again.

U.S.

Nymex neutral: Oil prices are consolidating without a clear tendency at yesterday’s settlement level in Asian trading this morning. Traders first of all have to digest the negative news on global oil demand growth. The traded volume at NYMEX is below average for this time of day. Market participants are waiting for the European markets to open, for signals from forex trading as well as for the upcoming economic data to be released in the USA and the eurozone .

Houston (ex-wharf indications 11-04 )
380cst $606
180cst $670
MGO $984

New Orleans (ex-wharf indications 11-04)
380cst $607
180cst $653
MGO $986

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

Crude is bearish , dropping with -$1.44. The paper market is dropping even more, with April 180cst -$6.00 and for 380cst -$5.50, and May contracts with 180cst -$6.25, 380st -$7.00 The cargo market is following with 180cst -$0.62, and 380cst -$1.81 and MGO -$0.32.

The Singapore fuel oil markets dipped between -$2.0 and -$0.5 during the morning Platts window yesterday. The Singapore heavy residual inventory saw a build of +1.6 mbbl to 17.94 mbbl. The delivered bunker premiums were around $7.5 above cargo prices. This morning the markets are trading down.

High premiums for prompt deliveries.
380 cst $609
180 cst $618
MGO $880

Fujairah (delivered indications 12-04)

380cst $617
180cst $668
MGO $995

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 : $600
(1.0 %) :$ 602
180cst: $ 630
(1.0 %):$ 632
MGO 0.1%S: $ 855