---

After gaining late on Friday, oil prices have been consolidating at a high level this morning. The fact that Iran and the P5+1 group failed to strike a deal, oil prices at ICE receive more support than those at NYMEX. Consequently, the Brent-WTI spread has widened to about 11.50 USD. As Tehran had predominately exported its oil to Europe and Asia before sanctions were imposed, these markets are much more affected if sanctions are maintained for longer.

ICE Gasoil contract for November delivery settled at 893.00 USD on Friday. This was 4.50 USD above Thursday's settlement. With some 32,100 deals, the traded volume was below average.. Oil markets in London and New York had started stronger on Friday, testing their first resistances early on, which stood firm until the afternoon. As the dollar had gained strength in the course of the day and considerably benefited from good U.S. job market data, traders took some profits, with oil prices pulling back from their day's highs. G.Oil even tested its first support. Fresh news were scarce and the trade volume rather low since market players were waiting for results from negotiations on the Iranian nuclear programme in Geneva. "Market sentiment might have been a little bit too optimistic" as far as a swift reduction of the sanctions against Tehran are concerned, Ric Spoonner of CMC Markets said. Investors had adopted a wait-and-see mode and refrained from placing long positions in view of a possible breakthrough in nuke talks. But since an agreement still seemed out of reach in the early evening, buyings dominated market and boosted oil prices, which breached several resistances. Thanks to automatic buying orders, oil futures settled at their day's highs.

The Stochastic is bullish at the Brent and the G.Oil chart this morning after giving off a buying signal on Friday. The RSI is also bullish for Brent, whereas the indicator has not yeat surpassed the 30%-line at the WTI and G.Oil chart. Despite the the RSI's and the Stochastic's buying signal at ICE, we assume a neutral to bullish stance this morning. This favours upward tests, but the technical constellation will only become clearly bullish if the RSI breaches the 30%-line at the WTI and G.Oil chart as well and thus confirms the other buying signals.

U.S.

Nymex gaining: Along with the technical buying signals triggered Friday evening, positive economic indicators as well as resultless talks with Iran, oil futures are ticking up this morning. The traded NYMEX volume is about average for this time of day. Market players are eying the opening of European markets and new signals from forex trading. There are no important economic indicators to be released today.

Houston (ex-wharf indications 8-11)
380cst $590
180cst $658
MGO $974
New Orleans (ex-wharf indications 8-11)
380cst $594
180cst $644
MGO $977

Singapore

Crude back up sligthly, gaining with WTI +$0.13. Singapore paper is bearish with +$7.00 for 180cst and +$7.50 for 380cst for Nov, and for Dec 180 cst +$9.85 and 380cst +$8.90 with MGO contracts Nov +$0.43 and Dec +$0.78. The cargo market is following with 180 cst -$2.44 380cst -$2.31 and MGO -$0.78.

380cst $597
180cst $602
MGO $895

Fujairah (delivered indications 11-11)

380cst $615
180cst $660
MGO $975

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $569
(1.0 %) :$588
180cst: $610
(1.0 %):$ 618
MGO 0.1%S: $ 875