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Oil prices swung between small gains and losses this morning, as market players continued to weigh the likelihood that the OPEC will cut output to support prices when it meets in Vienna later this week.

Oil futures at ICE and NYMEX started expectant on Friday morning even though technical analysis favoured upward tests due to its slightly bullish signals. Thanks to the surprising interest rate, cut in Chine buying orders predominant at midday. Extensive stop loss buyings were automatically exported after Brent breached its important psychological resistance line at 80.00 USD and the RSI at the Gasoil chart surpassed the 30 line. A short term bullish market situation which was utilised not only for short covering but also to engage in speculative long positions was caused due to the change in expectations concerning a possible OPEC production cut as well as due to the scepticism towards Iranian nuclear negotiations. The long positions were almost completely liquidated in the course of the afternoon as the weak euro limited upward potential. The futures weren't able to defend their technical increase until the close of trading but futures settles higher in general in London and New York.

ICE Gasoil contract for December delivery settled at 704.25 USD on Friday, this is 8.50 USD above Thursday's settlement. With some 54,800 deals the traded volume (front month) was about on average.

There are no fresh important signals for market players to be seen on the technical analysis after last week's buying signals. The RSI indicator is still slightly bullish after it had crossed the 30 line but the indicator seems to have already absorbed a part of its influence. The stochastic indicator is also only slightly bullish as initial buying signals were triggered several days ago and its lines don't diverge anymore. We consider the technical constellation as neutral to bullish due to the remaining technical influences as long as the psychological support at 80.00 USD Brent stays strong. A breach of this key support might lead to technical selling pressure again.

U.S.

Nymex on avarage: Futures stabilised after their up and down on Friday but stay strong in early trading. The traded volume at NYMEX is about on 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 today. There is no relevant news on the agenda today.

Houston (ex-wharf indications 24-11)
380cst $419
180cst $519
MGO $810

New Orleans (ex-wharf indications 24-11)
380cst $439
180cst $508
MGO $809

Singapore (delivered indications 24-11)

WTI is gaining with +$1.08 Singapore paper is up with +$8.00 for 180cst with +$7.95 for 380cst for Dec, and for Jan 180 cst +$8.00 and 380cst with +$8.30 with MGO contracts Dec bullish with -+$0.78 and in Jan with +$0.69. The cargo market is gaining with 180cst +$6.39, 380cst with +$8.12 and MGO with +$1.04.

380cst $478
180cst $490
MGO $720

Fujairah (delivered indications 24-11)

380cst $462
180cst $502
MGO $917

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $423
(1.0 %) : $428
MGO 0.1%S: $698