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Oil prices pushed higher this morning, as Saudi Arabia's pledge to work towards stabilizing the market continued to lend support, while investors focused on a global supply glut.

ICE and NYMEX futures traded lower in European trading hours on Monday, weighed down by technical movements in a fundamentally bearish market. Friday's lows were breached but the 40 dollar support of the WTI contract was not hit. In a volatile market ahead of Thursday's holiday in the U.S. oil prices rebounded at noon when traders consolidated their risk positions in an attempt to minimize their risks. Oil futures therefore rose strongly on short covering. If oil prices rebound from a key support (as the WTI did yesterday from its 40.40 USD support) and rise strongly within a few minutes, a series of stop-loss buying orders is automatically triggered and accelerates the rally that, in this case, was stopped by Friday's highs. Fundamentally, comments made by a member of the Saudi Arabian cabinet lent some support. According to the source the country is ready to co-operate with other oil producers in order to stabilize prices. If nothing new, the announcement increased the market volatility. If prices hit fresh intraday highs during the session in New York, they lost some ground in late trading and settled lower in the end.

ICE Gasoil contract for December delivery settled at 432.50 USD on Monday, this is 7.75 USD above Friday's settlement. With some 79,600 deals the traded volume (front month) was above average.

The upper limits of the technical downtrends in which oil prices at ICE and NYMEX were caught since the beginning of November were breached on Monday as were the 7-day moving average lines. The two lines of the Stochastic are diverging at the WTI chart which leaves the indicator slightly bullish. At the ICE charts the Stochastic has also turned bullish after having breached the 50 line from bottom to top. As for the RSI, the indicator rose above the 30 line at the Brent and the gasoil chart but failed to do so at the WTI chart. Should this happen still today a buying signal would be triggered. Both, Brent and Gasoil settled above their 7-day moving average line while the U.S. crude has not yet succeeded in doing so. In the absence of confirmative buying signals at the WTI chart we judge the technical constellation as neutral to bullish this morning but like to point out that, in case the necessary signals are triggered, oil prices could even rise as high as their 21-day moving average lines.

U.S.

Nymex is above average: Oil futures consolidated Monday's gains and traded in a narrow range close to settlement level in East-Asia but has breached the first resistances lines this morning in electronic Globex trade. The traded volume at NYMEX is above average this morning. Market players are waiting for the European financial and forex markets to open today, for the release of a series of economic indicators and for the API's report on U.S. petroleum inventories after office hours at 10.30 p.m.

Houston (ex-wharf indications 24-11)
380cst $200
180cst $278
MGO $444

New Orleans (ex-wharf indications 24-11)
380cst $211
180cst $248
MGO $459

Singapore (delivered indications 24-11)

Brent is up with +$1.48 for December contracts. Singapore paper is up with +$8.75 for 180cst with +$8.05 for 380cst for Dec, and for Jan 180 cst +$9.25 and 380cst with +$7.80 with MGO contracts Dec with +$1.48 and in Jan with +$1.47 .The cargo market is bearish with 180cst -$1.75, 380cst with -$1.97 and MGO with up -$0.43.

380cst $218
180cst $228
MGO $420

Fujairah (delivered indications 24-11)

380cst $214
180cst $249
MGO $610

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:

380cst : $198
MGO 0.1%S: $388