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Brent oil futures fell below the $108-a-barrel level on Monday, as geopolitical concerns in the Gaza strip eased.

Trading at oil markets was subdued on Friday morning. Investors seemed to prefer staying on the side-lines ahead of the weekend consolidating their riskier assets. Markets only gained some traction at the beginning of US trading. At that point in time oil futures increasingly tended to the downside again. Particularly WTI lost ground, when market players took profits from their long positions they had raised after the release of the DOE's oil inventories data on Wednesday. The other futures slowly kept track of WTI's decline, with the supports at 106.85 USD Brent and 884.50 USD Gasoil limiting losses at ICE. In late-afternoon trade, oil futures renewedly gained ground. WTI pulled back from a week-low at 101.00 USD climbing back up to the level it had at the beginning of the European session, whereas Brent and Gasoil breached several resistances. Particularly Gasoil surged breaking above its relatively flat uptrend. Since this automatically triggered even more technical buying orders, Gasoil soon hit a new 3-week high. Brent climbed to the upper end of its trend to the side but failed to exceed or break below it. The rise at oil markets that ICE futures showed, in particular, shortly ahead of the weekend was caused by the risk premium that was raised after reports said that the president of the European Counsil, Herman Van Rompuy, wrote a letter to the EU's leaders in which he announced the governments of the EU had come to terms over further sanctions against Russia. These sanctions would also soon impact on whole economic sectors.

ICE Gasoil contract for August delivery settled at 892.00 USD on Friday, this is +6.25 USD above Thursday's settlement. With some 81,600 deals the traded volume (front month) was above average.

Neither the stochastic indicator nor the RSI are giving any new signals at the Brent chart. Moreover, the North Sea crude oil blend stayed within its trend of consolidation sideways, so neither bullish nor bearish signals are generated. At the WTI chart, the break of the US crude oil contract below its trend has generated fresh downward potential. The stochastic indicator is slightly bearish at this chart, whereas it already gave a selling signal days ago. Gasoil, however, exceeded its trend. This has provided more upward potential. In all, the technical constellation thus remains neutral. Market players are likely to monitor Brent, that might surpass its side trend. This might trigger a buying signal. However, the stochastic indicator could give a selling signal as well, if its lines cross.

U.S.

Nymex on avarage: Oil markets this morning showed a light counter reaction to Friday afternoon's price rally. Thus, quotations are pulling back from their highs. However, profit taking from long positions is still moderate. Traders are waiting for new cues as the technical constellation as well as market fundamentals are neutral. The traded volume at NYMEX is about on average for this time of day. Market players will focus on the EU's new sanctions against Russia today eying as well the development at stock and forex markets. They will also keep monitoring the situation in Iraq, Ukraine, Israel and Libya and the economic indicators due today.

Houston (ex-wharf indications 28-7)
380cst $591
180cst $672
MGO $976

New Orleans (ex-wharf indications 28-7)
380cst $594
180cst $669
MGO $968

Singapore (delivered indications 23-7)

WTI is gaining with +$0.88. Singapore paper is back up as well with +$3.75 for 180cst and +$4.50 for 380cst for Aug, and for Sep 180 cst +$3.20 and 380cst with +$3.35 with MGO contracts Aug gaining with +$0.85 and in Sep with +$0.86. The cargo market is losing with 180cst -$3.80, 380cst with -$1.63 and MGO with -$0.31.

The Singapore fuel oil prices erased previous gains and lost more than $2.5 during the Asian Platts window yesterday. The delivered bunker premiums remained firm at app. $11.0-8.50 above cargo. The fuel oil ex-wharf market supply remains tighter than usual especially for higher viscosity products. Visco spreads weakened even more and closed significantly low at $0.78/mt yesterday. August is trading at app.$5.50/mt while forward prices are assessed in a range of $7.25-8.0/mt for the rest of the year. This morning markets are trading slightly higher.

380cst $595
180cst $602
MGO $882

Fujairah (delivered indications 24-7)

380cst $610
180cst $638
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

(delivered indications 28-7)
380cst : $579
(1.0 %) : $594
180cst: $609
MGO 0.1%S: $864