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Crude oil futures slipped lower on Friday, as investors eyed the release of U.S. data later in the day, although the previous day's report from the International Energy Agency continued to support oil prices. On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD108.42 a barrel during European morning trade, down 0.17%. The October contract settled up 0.97%, at USD108.60 a barrel on Thursday. Oil futures were likely to find support at USD106.58 a barrel, the low from September 11 and resistance at USD110.44 a barrel, the high from September 9. Oil futures had already tested their first support in the early morning Thursday. But as these proved to be strong, oil prices gradually increased in the course of the day. Along with the bullish IEA report, they soon breached their first resistance towards noon, triggering technical buying orders that invigorated the upturn. Following the optimism at the beginning of the week are doubts over how feasible an diplomatic solution to the Syrian conflict really is. "The market doesn't know if we're going to war or peace, and it's trying to protect itself for both possibilities," says Phil Flynn, analyst at Price Futures Group. In the afternoon, the weekly job market data released in the USA convinced and encouraged investors to buy. Consequently, oil prices at ICE and NYMEX climbed until the late evening, settling at their day's highs.

ICE Gasoil contract for October delivery settled at 951.50 USD on Thursday. This was 7.50 USD above Wednesday's settlement. With some 100,300 deals the traded volume was far above average.

At ICE charts, the RSI has climbed over the 30%-line and has given off a buying signal. The Stochastic's lines have crossed at both the Brent and the G.Oil chart, but the indicators is still neutral for WTI, see also technical analysis. From a merely technical perspective, we assume a slightly bullish stance this morning and expect the oil markt to maintain its firm tendency. However, in view of yesterday's advance along with the high trade volume, markets might see some profit-taking this morning. If the Stochastic's lines also crossed at the WTI chart in the course fo the day, buying pressure would increase once more. But little may happen ahead of the negotiations over Syria policy this weekend.

U.S.

Nymex neutral: Oil markets are consolidating near their highs reached yesterday evening. The traded volume at NYMEX is slightly below average for this time of day. Market players are now eying European markets, new signals from forex trading as well as today’s economic indicators. They will also keep an eye on developments in the Middle East.

Houston (ex-wharf indications 12-09)
380cst $622
180cst $693
MGO $1025

New Orleans (ex-wharf indications 12-09)
380cst $621
180cst $673
MGO $1027

Singapore

Crude is neutral with WTI +$0.18. Singapore paper is gaining with +$4.25 for 180cst and +$3.55 for 380cst for Sep, and for Oct 180 cst +$4.00 and 380cst +$2.75 with MGO contracts Sep +$0.70 and Oct +$0.71. The cargo market is following with 180cst +$5.07, 380cst +$3.28 and MGO +$0.39.

The Singapore fuel oil markets rose between +$3.0 to +$5.0 during the Asian Platts window yesterday erasing previous day’s loss. The most recent Singapore heavy residual inventory reported a slight build of+0.18 mbbl to 23.61 mbbl. The delivered bunker premiums were seen between +$1.50 to $3.25 above cargo prices. Bunker fuel oil swaps posted up to $7/mt gains at the front of the forward curve for Singapore papers. Backend was slightly weaker, up by $3.5-4.0/mt. This morning markets are trading slightly lower.

380cst $604
180cst $612
MGO $925

Fujairah (delivered indications 13-09)

380cst $605
180cst $667
MGO $995

ARA (Amsterdam - Rotterdam - Antwerp)

Loading problems for lsfo are still continuing. Expected to get better by the end of this week.

In September, ESSO Antwerp will start working on maintenance of their refinery. Because of this, local Antwerp suppliers will need to buy more product in Rotterdam, therefore long waiting times at Rotterdam refineries and storage are to be expected, with premiums on price as a result.

Indications for delivered bunkers:
380cst : $595
(1.0 %) :$626
180cst: $625
(1.0 %):$ 656
MGO 0.1%S: $ 925