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Oil prices have consolidated on their high level achieved Friday in Asian trading this morning, losing some ground at the beginning of the European trading and breaching first support lines at ICE and NYMEX. Traders are mulling the disappointing Chinese indicators rather than a largely positive US employment report. An early end to the FED's bond buying programme becomes less probable after the report which should lift the operators' spirit. But weak data from China that dampen hopes for a quick recovery of the Chinese economy curb investors' optimism and weigh also on oil prices. Strong support lines at 104.00 dollar (Brent), at 870.00 dollar (G.Oil) and at 95.55 dollar (WTI) limit the losses for the time being. Only below these levels technically driven selling orders are seen. Due to a lack of economic indicators in the afternoon and counteracting news from China and the US, oil markets are expected rather quiet and little volatile also in the afternoon. Market participants will eye weekly oil inventory data from the US to be released tomorrow and on Wednesday.

Oil futures initially showed a moderately bullish tendency on Friday morning surpassing first short-term resistance lines. However, investors' focus was once more on the US economic data that were due later in the afternoon. Markets thus were rather volatile. With more new jobs having been created than experts had expected and with the figures of the previous month having been downwardly revised, the data were neither decisively positive nor particularly negative even though the unemployment rate increased by +0.1pp. Initially, the figures had a rather bearish impact on oil markets and so futures at ICE and NYMEX slumped. While the Gasoil contract dropped down to its support at 861.00 dollars, Brent fell to 103.00 dollars and the WTI contract down to 93.70 dollars. US equities made oil markets change direction, however. Investors then interpreted the data in a slightly more nuanced way. Data on new employments were better than expected and thus positive, but still, market players did not expect that the Fed reduce its expansive measures in the near future, as the unemployment rate has climbed. Accordingly, investors at stock markets raised their long positions. This sentiment also spread to oil markets little later. Late in the evening, oil futures thus hit new highs. Over the past week, oil futures saw a 4.4%-rise.

ICE Gasoil contract for June delivery settled at 865.75 USD on Thursday. This was 5.25 USD below Wednesday's settlement. With some 42,800 deals the traded volume was below average.

The technical constellation does not provide any new clues at the beginning of the week, as the lines of the stochastic indicator do not cross. The indicator is still clearly in overbought territory, while the RSI is neutral. We thus still assess the technical situation as neutral. However, there might be some bullish signals if Brent surpasses its psychological resistance at 105.00 dollars sustainably.

U.S.

Nymex neutral: Oil prices at ICE and NYMEX have hardly changed in Asian trading this morning but edged lower at the beginning of European trading. The traded volume at NYMEX is slightly above average for this time of day. Market players are now eying the performance of European markets and new clues from forex trading. As to economic data, there are none of importance on the agenda today.

Houston (ex-wharf indications 7-06 )
380cst $581
180cst $647
MGO $963

New Orleans (ex-wharf indications 7-06)
380cst $592
180cst $630
MGO $965

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

Crude is gaining still with +$0.76. The paper market is slowing gaining with June 180cst +$0.40 and for 380cst +$1.00, and July contracts with 180cst +$1.00, 380st +$1.00. The cargo market is tracking crude and paper, gaining with 180cst +$0.88, and 380cst +$1.64 and MGO +$0.31.

The Singapore fuel oil markets inched up +$0.5 to +$2.0 during the Asian Platts window last Friday. Bunker demand was said to be slow as the recent stronger outright prices have discouraged buying and most waited for the prices to dip. The delivered bunker premiums eased to around +$5.50 above cargoes prices. This morning markets are trading slightly higher.

380cst $600
180cst $616
MGO $880

Fujairah (delivered indications 10-06)

380cst $608
180cst $684
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $585
(1.0 %) :$ 615
180cst: $ 619
(1.0 %):$ 650
MGO 0.1%S: $ 880