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Brent crude held below $60 a barrel, near a 5-1/2-year low, on Friday as a global oversupply of oil showed little sign of receding, even as companies cut upstream investments next year.

Oil futures at ICE and NYMEX started with uptests on Thursday morning and already breached their first resistances in early trading. Technical buying orders were triggered which slingshotted the futures up to their Wednesday's highs due to the technical bullish tendency. The high volatility and the upcoming Christmas holidays favoured short covering leading to an increase in prices. But analysts are still of the opinion that the upward correction was a technical one and that the fundamental market situation is still bearish. Oil futures changed direction due to the fact that they weren't able to breach Wednesday's highs and due to the comments of the Saudi Arabian oil minister and of its colleague of the United Arab Emirates who defended again the retention of a high production. Futures gave off their gains and eyed their long-term lows again which they marked at the beginning of the week but didn't reach them.

ICE Gasoil contract for January delivery settled at 544.25 USD on Thursday, this is 3.75 USD below Wednesday's settlement. With some 62,200 deals the traded volume (front month) was above average.

The upward correction seems to be finished at least from a technical point of view. The stochastic indicator's lines converge again at ICE and NYMEX so that the bullish influence has been completely absorbed. A selling signal would be triggered which would increase technical selling pressure if the indicator's lines sustainably cross in the course of the day. If futures breach their Thursday's lows further downside would be triggered reaching even the level of the lows from the beginning of the week at 58.50 USD Brent and 53.60 USD WTI. WTI could even eye its 50.00 USD mark if these supports are breached as well. Without any fresh selling signals we consider the technical constellation as neutral this morning.

U.S.

Nymex above avarage: Selling pressure stopped during the night after the downward movement so that futures consolidate on a low level above their Thursday's lows. 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.

Houston (ex-wharf indications 19-12)
380cst $316
180cst $467
MGO $690

New Orleans (ex-wharf indications 19 -12)
380cst $340
180cst $417
MGO $675

Singapore (delivered indications 19-12)

WTI is losing with -$1.99. Singapore paper is down with -$8.75 for 180cst with -$8.25 for 380cst for Dec, and for Jan 180 cst -$9.75 and 380cst with -$9.35 with MGO contracts Dec bearish with -$2.12 and in Jan with -$2.05. The cargo market is losing with 180cst -$8.92, 380cst with -$7.62 and MGO with -$1.83.

380cst $332
180cst $348
MGO $565

Fujairah (delivered indications 19-12)

380cst $328
180cst $370
MGO $866

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $308
(1.0 %) : $315
MGO 0.1%S: $558