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Crude oil futures declined this morning, as the broad strengthening of the U.S. dollar weighed on demand for the commodity.

Futures at ICE proved rather volatile on Friday morning after the moves of the NYMEX Gasoline contract roiled the markets earlier last week. After having declined in the morning, oil futures regained ground in the early afternoon. Expectations of a stronger than previously forecast US growth generated some bull pressure that at first affected the WTI contract. In the course of the afternoon, quotations at ICE pulled back from their highs as the market is still considered oversupplied despite the convincing data on US growth. Particularly gasoline futures slumped as investors cut their speculative long positions ahead of the weekend. Iran called on the OPEC members to encounter the relatively low oil prices but market participants were hardly impressed by the Iranian oil minister's plea. Whilst NYMEX Crude Oil gained ground until the evening profiting from uplifting US data and the draw in crude oil inventories in the USA reported by the DOE on Wednesday, the other futures shed earlier gains settling slightly lower.

ICE Gasoil contract for October delivery settled at 812.75USD on Friday, this is 1.00 USD below Thursday's settlement. With some 39,200 deals the traded volume (front month) was below average.

The buying signals of the stochastic indicator at the ICE and NYMEX charts have been completely spent by now. The lines of the indicator are converging again. Still, there is no selling signal, yet, as the lines of the indicator would have to renewedly cross in order to give a fresh bearish cue. The RSI is unlikely to give any new cues this morning as well, as it is in slightly oversold territory at ICE charts and neutral at the WTI chart. The long-term downtrends at ICE remain intact, however. WTI is moving within a short-term uptrend. If the contract breaks below this uptrend, technical selling pressure would be generated. Since there currently are no new cues, we assess the technical constellation as neutral.

U.S.

Nymex above avarage: On Friday and at the weekend there were no new cues for oil markets and so, futures rather traded sideways early Monday morning. By now, Gasoil and WTI have edged lower but this can't be regarded as a sustainable drop yet. The traded volume at NYMEX is above average for this time of day. Market players will eye the development at stock and forex markets today. They will also keep monitoring the situation in the geopolitical hotspots and today's economic indicators.

Houston (ex-wharf indications 29-9)
380cst $558
180cst $665
MGO $924

New Orleans (ex-wharf indications 29-9)
380cst $565
180cst $650
MGO $914

Singapore (delivered indications 29-9)

WTI is gaining with +$0.57 Singapore paper is down with -$2.70 for 180cst with -$3.00 for 380cst for Oct, and for Nov 180 cst -$3.00 and 380cst with -$3.25 with MGO contracts Oct losing with -$0.25 and in Nov with -%0.26. The cargo market is losing with 180cst -$1.86, 380cst losing with -$1.54 and MGO losing with +$0.07.

The Singapore fuel oil prices slipped around -$1.75 during the Asian Platts window last Friday. Bunker demand was quite stable while maintaining a firm delivered bunker premiums at around +$9 above cargo prices.

380cst $563
180cst $578
MGO $814

Fujairah (delivered indications 29-9)

380cst $585
180cst $629
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $543
(1.0 %) : $553
MGO 0.1%S: $888