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Oil prices edged lower this morning, amid uncertainty about how quickly the global glut of crude is set to shrink. The possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, further weighed.

The slightly bearish technical constellation as well as market fundamentals had already favoured oil futures' tests of the downside on Friday morning. In the first half of the day, oil prices thus lost some ground. Many U.S. traders were absent on Friday, taking advantage of the day after Thanksgiving for a longer weekend. Overall, the traded volumes remained low as investors had already liquidated their riskier positions in the first half of the week. In the afternoon, oil futures saw a slight upward correction but decisive news were lacking. In the course of the day, technical selling pressure took the upper hand again, particularly at the ICE Gasoil chart. Oil futures dropped back to their earlier lows. Whilst Brent remained above this level, Gasoil and WTI hit new lows. The U.S. crude oil sort fell clearly below its important support near the 7-period moving average. This lead to a selling signal of the Stochastic indicator, which is why WTI dropped down to its support at 41.70 USD on Friday evening. The technical selling pressure that had already weighed on oil futures on Friday morning thus prevailed after having strengthened in the course of the day.

ICE Gasoil contract for December delivery settled at 418.25 USD on Friday, this is -3.25 USD below Thursday's settlement. With some 38,800 deals the traded volume (front month) was below average.

After having given off selling signals at the Gasoil and the Brent chart on Thursday already, the Stochastic indicator confirmed these selling signals at the WTI chart on Friday. The indicator remains bearish at all these charts this morning, favouring further tests of the downside. Brent has already broken below Friday's low generating fresh downward slack. If WTI and Gasoil also drop below Friday's lows, a new selling signal would be triggered. The Stochastic indicator has meanwhile dropped below 50% at the Brent and the WTI chart, indicating more downward potential. We thus assess the technical constellation as bearish this morning. The key-supports for Gasoil and WTI are near Friday's lows.

U.S.

Nymex is above average: Oil futures have tended to the downside in East-Asia and in electronic Globex trade this morning after their break below Friday's lows had generated further downward potential. The traded volume at NYMEX is above average this morning. Market players are waiting for the European financial and forex markets to open today and for the release of a few indicators out of Germany and the USA.

Houston (ex-wharf indications 30-11)
380cst $208
180cst $274
MGO $452

New Orleans (ex-wharf indications 30-11)
380cst $216
180cst $269
MGO $452

Singapore (delivered indications 30-11)

Brent is down with -$0.40 for December contracts. Singapore paper is down with -$4.50 for 180cst with -$3.85 for 380cst for Dec, and for Jan 180 cst -$4.25 and 380cst with -$3.60 with MGO contracts Dec with -$0.01 and in Jan with -$0.02.The cargo market is bearish with 180cst -$6.01, 380cst with -$6.52 and MGO with -$0.95.

380cst $215
180cst $228
MGO $420

Fujairah (delivered indications 30-11)

380cst $215
180cst $261
MGO $607

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : 202
MGO 0.1%S: $388