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Oil prices pushed higher in Europe trade this morning, after Saudi Arabia and Venezuela met to discuss cooperating to stabilize the market over the weekend.

Whilst market fundamentals were slightly bearish on Friday morning, the technical constellation was still slightly bullish. However, the bullish factors failed to gain the upper hand on Friday. The euro/dollar still had massive impact on oil prices whilst speculations over an artificial output cut continued to spook the market. Oil futures remained very volatile as on the one hand, the number of supporters for an extraordinary OPEC-meeting had increased but on the other hand, analysts are still doubting a cut in oil production. This weekend, Venezuela's oil minister visited Saudi Arabia (OPEC's number one producer). Traders thus stayed on the sidelines, avoiding new positions - short or long. Besides, the traded volume is expected to remain rather thin this week as many Asian traders celebrate New Year. In the afternoon the Euro declined after the release of data on the US jobs market. This put oil futures in London and New York under pressure. Oil markets remained very volatile until Friday evening, with futures settling with some losses.

ICE Gasoil contract for February delivery settled at 312.00 USD on Thursday, this was 7.75 USD above Wednesday's settlement. With some 45,900 deals, the traded volume (front month) was below average.

The bullish impact of the Stochastic indicator has waned at the ICE and NYMEX charts. Currently, a technical triangle is developing. This triangle is limiting the trading ranges. If oil futures break above or below these technical limits, technical buying or selling might be triggered. After having dropped below 70%, the RSI is slightly bearish at the Gasoil chart. However, the Stochastic indicator remains neutral at ICE as well as at NYMEX charts. If the lines of the Stochastic indicator sustainably cross, there would be a clearly bearish signal. Until then, we assess the technical constellation as neutral for oil futures haven't sustainably broken above or below their lateral trend.

U.S.

Nymex above average: Oil futures have meanwhile largely shed the gains they had posted in Asian trading this morning. The traded volume at NYMEX is far above average this morning. Investors are now waiting for the European financial and forex markets to open whereas there are no economic indicators on the agenda today.

Houston (ex-wharf indications 8-2)
380cst $150
180cst $225
MGO $352

New Orleans (ex-wharf indications 8-2)
380cst $157
180cst $195
MGO $346

Singapore (delivered indications 5-2)

Brent is now dropping after the overdone with -$0.64 for Apr contracts. Singapore paper is following with -$4.50 for 180cst with -$4.20 for 380cst for Feb, and for Mar 180cst -$4.00 and 380cst with -$4.05 with MGO contracts Feb with -$0.70 and in Mar with -$0.54 .The cargo market is reacting to yesterday's paper gains with 180cst +$11.64, 380cst with +$11.46 and MGO with +$2.58.

380cst $168
180cst $174
MGO $299

Fujairah (delivered indications 5-2)

380cst $159
180cst $179
MGO $432

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $150
MGO 0.1%S: $290