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New York crude oil futures eased in early Asian trade on Monday with the dollar index up slightly with the contract seen consolidating as large stockpiles in the United States weigh on the market. On the New York Mercantile Exchange, light sweet crude futures for delivery in December fell to USD94.38 a barrel, down 0.12%, trading in a range of USD94.36 - USD94.49. On Friday, the contract closed at USD93.84 a barrel. ICE Gasoil contract for Dezember delivery settled at 911.25 USD on Friday. This was 2.50 USD abpve Thursday's settlement. With some 59,800 deals, the traded volume was slightly above average.

After having gained considerable ground Thursday, oil futures were holding steady at a high level during Friday's session since market participants preferred to consolidate their riskier positions ahead of the weekend and rather not place new positions in one or the other direction. While NYMEX Heating Oil and ICE G.Oil displayed a stronger tendency in the afternoon, gasoline and crude futures slipped due to profit taking in U.S. trade. Demand for heating oil is to increase within the next few weeks, given that it has been rather weak so close to winter season. In view of low refining capacities, this had a propping effect for G.Oil prices. Oil markets were generally ticking up on Friday in view of the DoE's inventory data, showing Thursday that overall U.S. oil demand stood at more than 20 million barrel/day for the third straight week. Adding to the bullish market sentiment were Janet Yellen's comments on U.S. monetary policy made the day before. In expectation of higher refinery production, the Brent-WTI spread had widened in the course of the day. Due to production outages in Libya and Iraq, it will be more bullish for Brent than for WTI when refiners ramp up production. The American crude is still faced with record stockpiles for this time of year. As a result, the spread between the two crude benchmarks for January contracts has widened to about 14 USD.

The figures of the JODI (Joint Oil Data Initiative) confirm that Saudi Arabia produced 10.12 mbpd and exported 7.84 mbpd in September. The country's production is said to have dropped in October, whereas exports rose by 0.3 mbpd, according to an anonymous source. There are, however, no official data for October yet.

After the buying signal triggered Friday, the Stochastic still is slightly bullish for WTI. However, we still bracket out the American crude at the moment because of the great level of spread bets. The Stochastic remains neutral at the Brent chart as its both lines have converged and are already touching. Without fresh market signals, we consider the technical constellation as neutral at the start of the week. If the Stochastic's lines crossed at the Brent chart in the course of the day, a bearish signal would arise that could lead to considerable profit taking, especially if this selling signal was also triggered for G.Oil and WTI.

U.S.

Nymex neutral: As prodcut futures gained in late trade Friday, traders have been taking profits in early trading this morning. Refinery run rates are expected to slightly increase and thus distillate and gasoline supplies will rise.
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 only a few economic indicators to be released today.

Houston (ex-wharf indications 16-11)
380cst $591
180cst $659
MGO $987

New Orleans (ex-wharf indications 16-11)
380cst $592
180cst $643
MGO $990

Singapore

Crude is neutral, loosing with WTI -$0.50. Singapore paper is slightly bullish with +$1.75 for 180cst and +$0.50 for 380cst for Nov, and for Dec 180 cst +$1.50 and 380cst +$1.00 with MGO contracts Nov +$0.00 and Dec -$0.02. The cargo market is bullish with 180 cst +$5.59 380cst +$4.93 and MGO +$0.98.

380cst $596
180cst $603
MGO $900

Fujairah (delivered indications 18-11)

380cst $614
180cst $661
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $570
(1.0 %) :$592
180cst: $600
(1.0 %):$ 622
MGO 0.1%S: $ 876