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Oil prices inched up from two-week lows this morning, as the U.S. dollar pulled back from recent highs, but gains were limited as oversupply concerns remained a factor for oil markets.

After two consecutive days of losses selling pressure had eased at ICE and NYMEX on Friday morning. The technical constellation was seen neutral and offered some room for short covering while fundamentals stayed bearish. Prices tested their upside despite Saudi Arabia's announcement on Thursday to reduce prices for October shipments to customers in Europe and the U.S. and Genscape's forecast of a build in Cushing crude stocks. Oil products rose faster than crude due to the gasoil contract's expiry on Thursday. The contract even breached its 7 and 21-day moving average lines but a technical buying signal was not triggered as Brent and WTI could not breach their key resistances. So oil prices consolidated their gains and traded in a narrow range as traders anticipated the release of the latest U.S. employment report for the month of October. The better-than-expected data stirred the market, the strong increase of the dollar weighing heavily on oil prices in London and New York. A stronger dollar makes dollar-nominated oil futures more expensive for traders outside the U.S. who covered their long positions and opted for speculative short positions. If more jobs in the U.S. will result in an increase in oil demand, the bearish effect of the stronger dollar prevailed. Therefore oil prices at ICE and NYMEX hit their day's lows during NYMEX session to recover modestly at the end of the session. While oil product prices finished almost unchanged vs their opening , Brent and WTI settled much lower in London and New York.

ICE Gasoil contract for November delivery settled at 449.25 USD on Friday, this is 2.00 USD below Thursday's settlement. With some 33,500 deals the traded volume (front month) was below average.

Neither Stochastic nor RSI trigger any fresh signals this morning. While the G.Oil at the ICE is trading just below its 7-day moving average the Brent and the WTI have some more upside until they hit the line. More downside is only expected if prices fall below Friday's lows. We therefore consider the technical constellation still as neutral this morning.

U.S.

Nymex is above average: Globex trade (NYMEX electronic computer trading) situation in the morning.

Oil futures edged higher in East-Asia this morning when traders covered their short positions after last week's hefty losses when prices hit a weekly low on Friday. At the beginning of European trading, though, oil's rise was limited by the stronger dollar and a weak Chinese trade balance and thus futures lost some of the ground gained earlier. The traded volume at NYMEX is above average this morning. Investors are waiting for the European financial and forex markets to open, while there is no more economic indicators on the agenda today.

Houston (ex-wharf indications 9-11)
380cst $232
180cst $293
MGO $483

New Orleans (ex-wharf indications 9-11)
380cst $242
180cst $291
MGO $481

Singapore (delivered indications 9-11)

Brent is losing with -$0.68 for December contracts. Singapore paper is down with -$2.50 for 180cst with -$2.35 for 380cst for Nov, and for Dec 180 cst -$2.75 and 380cst with -$3.05 with MGO contracts Nov up with +$0.17 and in Dec with +$0.12. The cargo market is yet to react with 180cst -$2.12, 380cst with -$3.16 and MGO with -$0.68.

380cst $245
180cst $237
MGO $445

Fujairah (delivered indications 9-11)

380cst $239
180cst $272
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $219
MGO 0.1%S: $418