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Oil prices ticked lower in quiet trading ahead of the end of the year this morning, as last week's sharp rally came to a halt.

Although market fundamentals were bearish last Wednesday, the technical constellation generated buying signals in the course of the day. The RSI exceeded 30% at the Gasoil and the WTI chart whereas the lines of the Stochastic indicator crossed at the Brent and the Gasoil chart, confirming the bullish signal the Stochastic indicator had given off at the WTI chart before. This favoured short-covering. Ahead of the Christmas holidays traders reduced their riskier assets. Since they had largely bet on falling prices in the past few weeks, they covered their short positions replacing them by buying orders. Investors also closely eyed the release of the DOE's data on US petroleum stockpiles. The DOE's report showed a draw in US crude oil stocks which was even more massive than the one reported by the API Tuesday night. That is why oil futures surged just before the holidays. Thursday, December 24, trading places in London and New York were open but closed early. Since most investors were absent already, the traded volumes were very low. Although oil prices saw a light downward correction in the course of trade, futures settled near their opening levels.

ICE Gasoil contract for January delivery settled at 339.75 USD on Thursday, this is +3.25 USD above Wednesday's settlement. With some 24,900 deals, the traded volume (front month) was below average.

Traders had already priced in the buying signals of the Stochastic indicator and the RSI Wednesday afternoon and Thursday morning. The lines of the Stochastic indicator are meanwhile converging again at ICE as well as at NYMEX charts. The RSI is moving in neutral territory. The indicators are thus losing their bullish influence which is why upward potential seems to be limited for the time being. Nonetheless, oil futures have surpassed the downtrend which had been intact since the beginning of December. Traders are now waiting for fresh signals in order to be able to adjust their positions. Since there are no fresh technical cues at the moment, we are assessing the technical constellation as neutral this morning.

U.S.

Nymex is above average: Oil futures traded in a rather narrow range in Asia but lost ground in electronic trading this morning after first short-term supports had been breached. The traded volume at NYMEX is above average this morning. Market players are waiting for the European financial and forex markets to open today. There are no economic indicators to be released this Monday.

Houston (ex-wharf indications 28-12)
380cst $148
180cst $207
MGO $360

New Orleans (ex-wharf indications 28-12)
380cst $203
180cst $254
MGO $391

Singapore (delivered indications 28-12)

380cst $164
180cst $181
MGO $333

Fujairah (delivered indications 28-12)

380cst $166
180cst $215
MGO $599

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $138
MGO 0.1%S: $318