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Oil futures in London and New York started with a steadier tendency on Friday. The bullish factors had already prevailed in the first half of the day as the crisis in Ukraine further escalated and market players renewedly added a risk premium to prices. Gasoil and Brent at first failed to break above their resistances at 868.25 USD and 103.00 USD, respectively. WTI gained a bit more ground in the morning already. Along with the crisis in Ukraine, in the course of the week better than expected data out of the USA pointed to a higher US oil demand. The better than forecast data released on Friday afternoon confirmed the positive tendency in the US economy and so NYMEX Crude oil (WTI) and Gasoline rose relatively sharply on the day. Whilst Gasoil failed to surpass 868.25 USD in late trade as well, Brent finally breached the 103.00 USD marker keeping track of WTI's gains. The softer euro kept a lid on gains in the evening, however. Eventually, the escalation in the Ukraine and the uplifting US data prompted investors to raise their long positions ahead of the prolonged weekend in the USA (Labor day today - NYMEX floor closed, early close of electronic trading at ICE and NYMEX). That is why oil futures settled with noticeable gains ahead of the weekend.

ICE Gasoil contract for September delivery settled at 864.75 USD on Friday, this is -0.25 USD below Thursday's settlement. With some 41,600 deals the traded volume (front month) was on average.

WTI surpassed its short-term uptrend on Friday. This has generated new technical upward potential. The move was chiefly caused by the increase in strategic long positions ahead of the prolonged weekend in the USA by means of which traders tried to hedge the risks of an escalation of the crisis in Ukraine. The stochastic indicator gives unhomogenuous cues at ICE charts. Whilst the lines of the indicator have crossed at the Brent chart giving a buying signal, it is bearish at the Gasoil chart. The RSI is in overbought territory at all charts already but it will only give a selling signal if it drops below 70%. The short-term uptrend at ICE still remains intact indicating further gains within the trend. The fact that the market is overbought has created some potential for a downward correction but as long as the indicators aren't bearish altogether, a sustainable downward move is unlikely. That is why we are still regarding the technical constellation as neutral this morning.

U.S.

Nymex below avarage: After Friday's rise, oil futures remained on a higher level in Asia and in electronic trading this morning. However, investors are currently taking some profits which is why futures have breached their first supports. The traded volume at NYMEX is below average for this time of day. Traders are now monitoring the development at stock and forex markets. They will also keep a close eye on the situation in Ukraine, Iraq and Libya. They are also waiting for today's economic indicators.

Houston (ex-wharf indications 1-9)
380cst $577
180cst $656
MGO $957

New Orleans (ex-wharf indications 1-9)
380cst $584
180cst $668
MGO $959

Singapore (delivered indications 1-9)

WTI is gaining with +$0.54. Singapore paper is up with +$0.75 for 180cst and x$0.00 for 380cst for Sep, and for Oct 180 cst +$0.25 and 380cst is down with -$0.25 with MGO contracts Sep losing with -$0.08 and in Oct with -$0.10. The cargo market is losing with 180cst -$0.71, 380cst with -$0.36 and MGO with -$0.34.

The Singapore fuel oil prices dipped app. -$0.50 during the Asian Platts window. The recent Singapore heavy residual inventory reported a build of +3.09 mbbl to 20.04 mbbl. The delivered bunker premiums were seen around +$8.5 above cargo prices.

380cst $589
180cst $602
MGO $868

Fujairah (delivered indications 1-9)

380cst $604
180cst $635
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $573
(1.0 %) : $582
180cst: $603
MGO 0.1%S: $850