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Brent crude oil held above $110 a barrel on Friday, heading for a weekly gain, boosted by a positive outlook for fuel demand in the United States, the world's largest oil consumer, and reduced Libyan supply. Oil gained this week after U.S. crude stockpiles fell, while the U.S. Federal Reserve's decision to start winding down its bond buying programme supported the view that the world's biggest economy is on the path to recovery. U.S. crude futures headed for a rise of more than 2 percent this week, while Brent crude was set for a 1 percent weekly gain. Brent's premium to U.S. oil was also on track to narrow for a third straight week. On the day, Brent crude rose 9 cents to $110.38 a barrel by 0913 GMT, while U.S. oil was at $98.72 a barrel, down 32 cents.

ICE Gasoil contract for January delivery settled at 935.25 USD on Thursday. This was 6.25 USD above Wednesday's settlement. With some 50,400 deals the traded volume was on average.

Since the DOE's data on US oil inventories released Wednesday provided bullish cues, oil futures at ICE and NYMEX traded on a high level on Thursday morning. In the course of Thursday morning they even extended their gains breaching first resistances (Gasoil) in the early afternoon. This has triggered more technical buying. Oil prices were also bolstered by buying orders that were effectuated in order to avoid larger risks, as many traders will be on holiday in the coming week leaving trade to thin for larger transactions. Thursday evening, WTI also rose against the backdrop of spreadbets raised on Wednesday being liquidated. The spread between WTI and Brent thus narrowed to about 11 dollars in the evening. The bearish effect many investors had expected to come from the Fed's tapering failed to appear, however. Market players rather interpreted the decision to cut bond buying and Ben Bernanke's comments as a hint that US growth is already more stable than expected - which would also have a positive impact on US oil demand. Oil markets remained steady until late in the evening. Then investors started to take some profits. In all, oil futures at ICE and NYMEX settled with considerable gains, however.

The stochastic indicator remains bullish at ICE and NYMEX charts for the time being. Even though there were no new buying signals, the lines of the indicator have continued to diverge at the Brent and the Gasoil chart favoring a test of the upside potential and a steadier tendency. From a merely technical perspective, the current situation is thus slightly bullish. However, the traded volume is likely to remain very thin today. Thus volatility at oil markets increases and the situation might change abruptly, the more so as trade will be dominated by investors consolidating their risk positions.

U.S.

Nymex neutral: After yesterday evening's highs oil prices already slightly retreated at night. This morning they show no clear direction, however, consolidating on a high level. The traded NYMEX volume is far below average for this time of day. Investors now wait for the development of stock and forex markets and some economic indicators. Ahead of the weekend, particularly figures regarding the US GDP might bring some new cues.

Houston (ex-wharf indications 19-12)
380cst $600
180cst $668
MGO $999

New Orleans (ex-wharf indications 19-12)
380cst $620
180cst $656
MGO $1006

Singapore

WTI is up slightly with +$0.24. Singapore paper is bullish with +$1.75 for 180cst and +$1.25 for 380cst for Dec, and for Jan 180 cst +$1.75 and 380cst +$1.25 with MGO contracts Dec +$0.88 and Jan -$0.90. The cargo market is bearish with 180 cst -$5.03, 380cst -$5.78 and MGO -$0.49.

The Singapore Fuel Oil markets were up around +$2.0 during the Platts window yesterday. The latest Singapore heavy residual stockpile reported a slight draw -0.58 mbbl to 21.65 mbbl. The delivered bunker premiums were at around +$4.5 above cargo prices yesterday. Rotterdam showed higher prices over the holiday. Price came up app. $2/mt for CST HSFO and $1/mt for LSFO.

380cst $604
180cst $611
MGO $925

ARA (Amsterdam - Rotterdam - Antwerp)

Still a lot of lsfo problems in ARA. No loading prospects in Antwerp. At the moment suppliers are only offering from end of this week onwards.

Indications for delivered bunkers:
380cst : $582
(1.0 %) : $623 (if available)
180cst: $612
MGO 0.1%S: $ 895