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WTI for August delivery fell 63 cents, or 0.6 percent, to $105.32 a barrel at 9:03 on the New York Mercantile Exchange. The volume of all futures traded was 4.1 percent above the 100-day average for the time of day. The contract climbed $1.04 on July 12, capping a 13 percent rally over three weeks. Brent for August settlement slid 34 cents, or 0.3 percent, to $108.47 a barrel on the London-based ICE Futures Europe exchange. Volume was 2.7 percent below 100-day average. Brent’s premium over WTI widened to as much as $3.43. The spread was $1.99 on July 10, the narrowest based on closing prices since November 2010.

After Thursday's losses oil futures at ICE consolidated in a relatively tight range on Friday morning. The break of the first resistances generated further technical stop loss buying orders that raised buying pressure. While US economic data came in mixed, the renewed shut-down o the Trans Niger Pipeline prompted investors to increase their long positions. NYMEX gasoline contracts also dragged prices along. Due to the shut-down of several refineries there was some strategic buying in this category that also had a bullish effect on the other contracts. Since the euro declined against the dollar in the course of the day, the calculatory heating oil price index for domestic prices already pointed to a further rise in (the merely calculated) prices in the afternoon. Oil futures held steady until the evening. After severeal short-term resistances had been breached, there was frequent technical buying and so futures settled with new highs. Futures at ICE even hit new 3-month highs.

ICE Gasoil contract for August delivery settled at 916.25 USD on Friday. This was +6.75 USD compared to Thursday's settlement. With some 84,900 deals the traded volume was above average.

The stochastic indicator is still slightly bearish at the WTI and Gasoil chart this morning even though it already gave the signals last Thursday. Formally, the lines of the stochastic indicator have crossed at the Brent chart, too, this morning. However, this is not a strong signal as the lines don't significantly diverge, yet. The RSI is likely to be the indicator that will give the next selling signals - in case it falls below the 70% at ICE and NYMEX. The short-term supports might provide some cues, too, if they are breached. Given the past 3 day's lows between 104.21 dollars and 104.36 dollars, a new key-support has formed at the WTI chart near 104.20 dollars. We assess the technical constellation as neutral this morning, even if there is some profit taking. The technical situation would only turn bearish if the RSI gave the according selling signals and if the WTI's key support is breached.

U.S.

Nymex neutral: Despite weak economic data of China, oil futures have consolidated on a high level this morning. This is probably also the case because Japanese markets are closed today due to a holiday. The traded volume at NYMEX is about on average for this time of day. Market players are now looking ahead to the performance of European markets, new clues from forex trading and some economic indicators.

Houston (ex-wharf indications 12-07 )
380cst $596
180cst $676
MGO $996

New Orleans (ex-wharf indications 12-07)
380cst $601
180cst $633
MGO $998

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

Crude is bullish with +$0.73. The paper market is bullish, with Jul 180cst +$0.50 and for 380cst +$0.75, and Aug contracts with 180cst +$0.75, 380st +$0.98. The cargo market is bearish, with 180cst -$7.14, and 380cst -$4.36 and MGO -$1.02.

380cst $595
180cst $602
MGO $905

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $604
(1.0 %) :$620
180cst: $634
(1.0 %):$ 650
MGO 0.1%S: $ 898