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Crude oil prices dropped in Asia this morning after a gauge of China's manufacturing activity released at the weekend fell to a five-month low.

The futures at ICE and NYMEX eased on Friday morning following as the euro had declined. After Wednesday's price increase, as expected, the strong dollar had a bearish effect on oil prices at ICE and NYMEX on Thursday morning. The dollar added to selling pressure on the US dollar-denominated oil futures, as this is what makes oil more expensive for traders outside the United States. Profit taking at the oil market was favored by the upard movement in the middle of the week, which was a reaction on the bullish data on US oil inventories. The slump in the euro/dollar-parity made selling pressure at ICE and NYMEX rise again in the early afternoon which made WTI breach its psychological support at 80.00 USD dollar. On Monday, the US crude oil failed to breach the support at its long-term low near 79.45 USD. Since the euro stabilized in the course of the evening, WTI's rebound from the support provoked some upward potential. Futures recovered in late trading compensating for almost all of their losses. Finally, prices settled lower in London and New York, however.

ICE Gasoil contract for November delivery settled at 741.75 USD on Friday, this is 4.75 USD below Thursday's settlement. With some 76,700 deals the traded volume (front month) was above average.

On Friday, the stochastic indicator was only bearish at the Brent chart but now the selling signal was confirmed at the WTI and Gasoil chart as the lines of the indicator crossed. Moreover, the lines of the indicator fell below its 50 lines at the Brent and WTI chart. The RSI doesn't provide any signals still moving in the neutral zone between 30% and 70%. The stochastic indicator indicates further downward tests but the 80 USD mark will play an important role at the WTI chart. If the contract drops below Friday's intraday lows, more downside might be created as well. In general, we consider the technical constellation neutral to bearish for the time being.

U.S.

Nymex above avarage: Oil prices retreated in the morning as currently, the strong dollar favors more downward movement at the oil market. The traded volume at NYMEX is above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots and the economic indicators which are to be released today.

Houston (ex-wharf indications 3-11)
380cst $473
180cst $577
MGO $884

New Orleans (ex-wharf indications 3-11)
380cst $486
180cst $530
MGO $840

Singapore (delivered indications 3-11)

WTI is losing with -$0.33 Singapore paper is down with -$3.90 for 180cst with -$4.40 for 380cst for Nov, and for Dec 180 cst -$2.80 and 380cst with -$3.00 with MGO contracts Nov bullish with +$0.32 and in Dec with +$0.30. The cargo market is losing with 180cst -$2.49, 380cst with -$4.13 and MGO with -$0.71.

The Singapore fuel oil prices lost more than -$2.5 during the Asian Platts window following weaker crude prices. The delivered bunker premiums weakened to app. $5.0 above cargo prices. Visco spread, as expected for the end of the month, jumped to $9,81 last Friday. November is trading at app. $8.50 while the rest of the year and Cal2015 remains relatively stable at the range of $6.75-7.25.

380cst $476
180cst $495
MGO $737

Fujairah (delivered indications 3-11)

380cst $485
180cst $518
MGO $932

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $462
(1.0 %) : $468
MGO 0.1%S: $743