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Brent oil futures edged higher this morning, as investors returned to the market to seek cheap valuations in wake of recent losses and to close out bets on lower prices.

Futures at ICE and NYMEX eased on Friday morning but rebounded from their supports at 85.50 USD Brent, 731.50 USD Gaoil and 82.40 USD WTI and rose again at midday. The slightly bullish technical constellation favored short covering before the weekend and pushed the futures higher. But confirming technical buying signals by the RSI were missing and therefore upward correction was limited, the more as the fundamental constellation is estimated further bearish. In the absence of important impulses market players were rather cautious and futures continued their consolidation phase until the evening. Only oil products at NYMEX showed a slightly strong tendency in late trading. They profited from the encouraging U.S. economic data as well as from a rise in U.S. product demand as per the DOE's figures released on Thursday.

ICE Gasoil contract for November delivery settled at 735.00 USD on Friday, this is 8.75 USD above Thurday's settlement. With some 71.700 deals the traded volume (front month) was above average.

The stochastic indicator's buying signal was triggered at the end of last week and was in part absorbed by the following upward movement. The indicator stays slightly bullish as its lines keep diverging. The RSI stays rather neutral as a bullish signal will only be triggered by a breach from bottom to top of the 30 line. Should these buying signals be confirmed by the RSI during the day, futures at ICE and NYMEX will be pushed higher again. Due to the bullish stochastic indicator we consider the technical constellation as neutral to bullish this morning. To continue the upward movement, an additionnal signal by the RSI seems to be necessary.

U.S.

Nymex above avarage: After an upward movement in the second half of the previous week the futures ease slightly this morning. But movements are limited and prices are still on a high level. The traded volume at NYMEX is far above average at this time of day. Market players are waiting for the European financial and the exchange market to open and will eye the situation in the geopolitical hotspots and the economic indicators to be released today.

Houston (ex-wharf indications 20-10)
380cst $456
180cst $576
MGO $852

New Orleans (ex-wharf indications 20-10)
380cst $468
180cst $569
MGO $853

Singapore (delivered indications 20-10)

WTI is gaining with +$0.10 Singapore paper is up with +$0.65 for 180cst with +$1.50 for 380cst for Nov, and for Dec 180 cst +$0.90 and 380cst with +$1.00 with MGO contracts Nov gaining with +$0.35 and in Dec with +$0.38. The cargo market is gaining with 180cst +$16.68, 380cst with +$15.89 and MGO with +$1.94.

The Singapore fuel oil prices rebounded and were trading app. $16.0 higher during the Asian Platts window last Friday lifted by the rebounding crude prices. The latest Singapore heavy residual inventory saw a marginal build of +0.42 mbbl to 20.70 mbbl. The delivered bunker premiums firmed to $7.5-6.0 above cargo prices.

380cst $485
180cst $499
MGO $735

Fujairah (delivered indications 20-10)

380cst $488
180cst $570
MGO $955

ARA (Amsterdam - Rotterdam - Antwerp)

Tight avails until the 22nd

Indications for delivered bunkers:
380cst : $466
(1.0 %) : $490
MGO 0.1%S: $724