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Oil futures fell more than 1% during European morning trade this morning, as concerns over the global economic outlook were amplified after data showed that Japan unexpectedly slipped into recession.

Oil futures at ICE and NYMEX breached on Friday morning due to the technical and fundamental neutral to bearish guidelines and expanded their 4-year-low of the previous day. But since therer were were no important signals a new sharp price drop was prevented. Traers used the low price level to take profits as expected. Oil futures sharply decreased in the course of last week and traders engaged in short positions to profit of this development. Before the weekend and after the prices have reached their long-term lows traders rather tended to do short covering. Thus upward correctino was favored by the positive economic data which was released on Friday. Finally oil futures settled higher near their intraday highs in London and New York, after they have reached their long-term lows on Friday morning.

ICE Gasoil contract for November delivery settled at 698.00 USD on Friday, this is 7.00 USD below Thursday's settlement. With some 75,300 deals the traded volume (front month) was above average.

The lines of the stochastic indicator at ICE and NYMEX crossed on Friday against the backdropf of the upward correction. Thus, the indicator has triggered buying signals. These buying signals were confirmed by the RSI which surpassed 30% at the Gasoil and the WTI chart. The fact that the indicators are moving in oversold territory favors the technical upward correction. Even though the indicators generated fresh buying signals and point to upward tests therefore, we consider the technical constellation but slighty bullish. Brent wasn't able to reconquer the 80.00 USD marker, the superordinate uptrends are still intact and Friday's corrections should have already absorbed a part of the bullish potential provided by the buying signals.

U.S.

Nymex above avarage: Futures at ICE and NYMEX ease again after Friday's short covering and follow the fundamentally rather bearish direction in the market. The traded volume at NYMEX is far 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 (see economic calendar).

Houston (ex-wharf indications 17-11)
380cst $436
180cst $532
MGO $825

New Orleans (ex-wharf indications 17-11)
380cst $449
180cst $513
MGO $822

Singapore (delivered indications 17-11)

WTI is gaining with +$0.88 Singapore paper is up with +$0.50 for 180cst with +$0.25 for 380cst for Dec, and for Jan 180 cst +$0.85 and 380cst with +$0.20 with MGO contracts Dec bullish with +$0.64 and in Jan with +$0.68. The cargo market is losing with 180cst -$22.53, 380cst gaining with -$21.08 and MGO with -$3.38.

380cst $470
180cst $488
MGO $710

Fujairah (delivered indications 17-11)

380cst $455
180cst $500
MGO $921

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $418
(1.0 %) : $428
MGO 0.1%S: $698