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Oil futures were lower this morning, as ongoing concerns over rising supplies and weak demand weighed.

After the price increase on Thursday traders tended to take profit at the oil market in London and New York on Friday. News that Saudi Arabia supplied the market with less oil in September compared to the previous month was interpreted bullish on Thursday. But as the decrease in exports is due to the weak demand and the country contributed to the market's oversupply by increasing its production the news was seen bearish on Friday. Before the weekend traders therefore consolidated Thursday's long positions by going short. The futures breached several support lines in the course of the day before supports at 85.25 USD Brent, 930.00 USD Gasoil and 80.35 USD WTI turned out solid. Even though the counter movement later in the evening compensated some of the losses, prices settled lower at ICE and NYMEX.

ICE Gasoil contract for November delivery settled at 735.50 USD on Friday, this is 6.00 USD below Thursday's settlement. With some 32,200 deals the traded volume (front month) was below average.

The Stochastic indicator is to be interpreted neutral this morning at ICE and NYMEX. The indicator's two lines converge at the WTI chart, but a bullish signal will only be triggered if the lines cross. The RSI stays at the neutral level and therefore no freh signals are provoked. At the WTI chart a triangle constellation has formed which limits oil's upward and downward margin and also at the ICE similar short-term constellations can be observed. This indicates that the market is in consolidation and is waiting for fresh signals which would be triggered by a breach of the formation. We therefore consider the technical constellation still neutral this morning.

U.S.

Nymex below avarage: Oil futures find no direction in the early morning and still consolidate in a narrow range. The traded volume is below average at this time of day. Investors are waiting for the European financial and the exchange market to open and will closely watch the situation in the geopolitical hotspots and some economic indicators due today.

Houston (ex-wharf indications 27-10)
380cst $490
180cst $573
MGO $847

New Orleans (ex-wharf indications 27-10)
380cst $484
180cst $551
MGO $853

Singapore (delivered indications 27-10)

WTI is losing with -$0.18 Singapore paper is up with +$1.10 for 180cst with +$0.70 for 380cst for Nov, and for Dec 180 cst +$0.85 and 380cst with +$0.40 with MGO contracts Nov losing with -$0.28 and in Dec gaining with +$0.22. The cargo market is gaining with 180cst +$4.87, 380cst with +$4.94 and MGO with +$1.03.

The Singapore fuel oil prices erased previous loss by gaining around +$5.0 during the Asian Platts window led by the stronger crude values. Market fundamentals were balanced with supplies heard to be ample. The delivered bunker premiums were hovering around +$7.0 above cargo prices. Bunker fuel oil swaps lost a few cents for the front months contracts both in Rotterdam and Singapore papers. The backend of the forward curve was slightly weaker with Cal15 papers assessed app. $1.5-1.0 down vs previous close.

380cst $470
180cst $488
MGO $729

Fujairah (delivered indications 27-10)

380cst $487
180cst $538
MGO $945

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $456
(1.0 %) : $476
MGO 0.1%S: $718