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U.S. crude futures fell below $90 a barrel for the first time in six weeks, while Brent crude approached $100 a barrel at its lowest point. Recently, light sweet crude for May delivery traded $1.66, or 1.8%, lower at $89.63 barrel on the New York Mercantile Exchange. Brent crude on ICE Futures Europe recently fell $1.57, or 1.5%, to $101.54 a barrel. The losses came after China reported its gross domestic product grew 7.7% in the first quarter, a decline from 7.9% in the fourth quarter of 2012 and lower than many economists forecast. The median GDP forecast of 14 analysts polled by The Wall Street Journal was 8%. The disappointing reading has raised worries about slowing oil demand in China, whose booming growth helped fuel oil's steady rise over much of the last decade. China and other emerging markets have been key engines of global oil demand as developed countries, including the U.S., have suffered from flagging economic growth and higher fuel efficiency.

Oil prices in London and New York had already been slipping Friday morning. The technical analysis lost its bullish influence and thanks to the fundamentally bearish situation, traders took considerable profits. In the course of the week, the IEA, EIA and OPEC had revised down their demand growth prognosis and created a deeply bearish atmosphere at the oil market. Adding to this was, of course, the bearish data on U.S. oil inventories released by the DoE on Wednesday. Thus, oil futures breached their first supports early on, triggering automatic selling orders which accelerated the price slump. Towards noon, the Stochastic’s lines crossed, generating more technical selling signals which drove oil prices down to their long-time lows. With the released of disappointing economic data out of the USA, the bearish tendency continued into the late afternoon. In the course of the evening, the euro slightly edged higher and thus favoured first short-coverings. However, worse-than-expected economic figures out of China reanimated the downside trend at the oil market this and prices are already testing Friday’s long-term lows.

ICE Gasoil contract for May delivery settled at 856.00 USD on Friday. This was 26.00 USD below Thursday's settlement. With some 77,100 deals the traded volume was clearly above average.

The Stochastic’s lines had already crossed Friday morning, resulting in fresh selling signals. But the indicator remains clearly bearish. The RSI indicates a slightly oversold market situation. However, the technical constellation does not at all hint at a sustainable upward correction at the moment. After the heavy price slump on Friday and also this morning, market players tend to cover their short positions, engagements in long positions, however, are not expected. Given the Stochastic’s alignment, we consider the technical view rather bearish today.

U.S.

Nymex bearish: Given the disappointing economic indicators released in China tonight, Friday’s downward trend continues at the oil market this morning and as a result, oil futures have already breached their long-time lows reached last week. The traded volume at NYMEX is far above average for this time of day. Market players now look ahead to the performance of European markets, to new signals from forex trading and to some economic data to be released in the euro zone and the USA today.

Houston (ex-wharf indications 12-04 )
380cst $601
180cst $668
MGO $974

New Orleans (ex-wharf indications 12-04)
380cst $602
180cst $650
MGO $975

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

Crude is bearish , dropping with -$3.95. The paper market is dropping even more, with April 180cst -$10.25 and for 380cst -$9.25, and May contracts with 180cst -$10.25, 380st -$9.25 The cargo market is following with 180cst -$5.68, and 380cst -$6.47 and MGO -$1.72.

The Singapore fuel oil markets lost more than $5.5 during the Platts window last Friday tracking crude values. The fuel oil values continued to lag behind the fall which narrowed the Asian fuel oil crack. The delivered bunker premiums were between $8.0- 7.5 above cargo prices last Friday despite the softer crude values after the window. This morning the markets are trading down.

High premiums for prompt deliveries.
380 cst $600
180 cst $608
MGO $860

Fujairah (delivered indications 15-04)

380cst $607
180cst $658
MGO $975

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 : $576
(1.0 %) :$ 586
180cst: $ 606
(1.0 %):$ 636
MGO 0.1%S: $ 830