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Crude oil gained in Asia this morning as investors saw the supply picture slightly tighter on U.S. rig count data last week.

One of the predominating bullish factors of last week - Hurricane Joaquin - lost its influence on Friday, when it was downgraded, reducing the risks for refineries along the US East Coast. Around noon, Russia reported that its oil production was still on a very high level. This added to selling pressure but oil futures only moderately declined until the early afternoon as investors were looking ahead to the official September data on the US labour market. The data were expected to be an important indicator for a possible rate hike in October. However, the labour market report fell short of expectations pointing to a weaker than expected US oil demand. The bearish factors thus took the upper hand, the more so as seasonal maintenance work at the Corpus Christi refinery in Texas was announced. Even though the dollar was able to recover from the losses it had posted after the release of the labour market data, oil futures regained ground in evening trade fostered by the report on active US oil rigs released by Baker Hughes. WTI profited the most from this report, taking the lead in oil futures' recovery.

ICE Gasoil contract for October delivery settled at 425.25 USD on Friday, this is -13.50 USD below Thursday's settlement. With some 55,100 deals the traded volume (front month) was about on average.

The lines of the Stochastic indicator have converged at ICE charts but they haven't clearly crossed yet. That is why the indicator should still be assessed as neutral. At the WTI chart, the indicator doesn't provide any fresh cues either. The 7 and 21-period moving averages have renewedly converged losing some of their bearish bias. The lateral trend at ICE and NYMEX remains intact as there are no fresh cues. Consequently, the technical constellation can be considered neutral this morning.

U.S.

Nymex above average : The bullish rig count released by Baker Hughes on Friday evening is still buoying oil futures in electronic trading this morning. The fact that Saudi Arabia cut its selling prices for November deliveries has but little impact on prices as, apparently, this had been expected before. The traded volume at NYMEX is far above average this morning. Market participants are now waiting for the European financial and forex markets to open and for the release of the economic indicators which are due today.

Houston (ex-wharf indications 5-10)
380cst $223
180cst $272
MGO $486

New Orleans (ex-wharf indications 5-10)
380cst $237
180cst $290
MGO $467

Singapore (delivered indications 5-10)

Brent is gaining with +$0.52. Singapore paper gaining with +$7.50 for 180cst with +$7.50 for 380cst for Oct, and for Nov 180 cst +$7.55 and 380cst with +$7.15 with MGO contracts Oct climbing with +$0.65 and in Nov with +$0.68. The cargo market is losing with 180cst -$0.96, 380cst with -$2.40 and MGO with -$0.84.

380cst $230
180cst $248
MGO $441

Fujairah (delivered indications 5-10)

380cst $244
180cst $264
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $218
MGO 0.1%S: $428