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Technical indicators: neutral

Initially driven by a new economic optimism, oil prices rose Friday breaching several resistance lines. When the important 75.50 dollar resistance for the WTI crude fell, prices were catapulted higher by extensive technical buying, as analysts had expected. The downtrend has flattened and a new uptrend has formed. The RSI indicator is still in neutral territory, while the Stochastic started giving first bullish signals Friday afternoon. First WTI crude support line seen at 75.70 dollars today, first resistance line at 77.20 dollars. Oil futures rose during the session in New York but shed some of the gains in after-hour trading as traders took profit ahead of the weekend. Oil rose that day as the dollar fell to its lowest level against the euro since April 20th, boosting the appeal of commodities. The gain was the biggest since September 10th.

Oil prices are seen edging a bit higher today on technical buying as the lack of fresh economy data will not provide much fundamental direction. Friday's US economy data that came in mixed (durable goods orders dropped but capital equipment purchases rebounded strongly vs the previous month) might extend Friday's bullish market sentiment.

ICE Gasoil October is expected to open unchanged to -1,50 dollars at about 682,00 dollars/ton after settling at 682,75 dollars (official settlement price) Friday night. This was 5,50 dollars above Thursday's settlement. Volume with some 43.900 deals on average.

The crack-spread between ICE brent November contract and the WTI crude widened by more than 3.00 dollars, the widest spread since October 2008. Main reason is the ailing US oil demand compared with a rather healthy oil consumption in Europe.

The spread between Brent and WTI futures in New York has narrowed to 2.23 dollars a barrel from 4.46 dollars a week earlier.

U.S.

Nymex Access : Oil prices are flat in Asian trading hours and NYMEX electronic trading this morning, crude oil trading near a two-week high as Asian equities climbed. No news in the markets. The traded volume is on average.

Houston (ex-wharf indications 27-9)

380cst: $437
180cst: $457
MGO: $721

Very tight avails for 180cst

New Orleans (ex-wharf indications 27-9)

380cst: $439
180cst: $459
MGO: $724

Singapore (correct as of 1430hrs local time)

Crude is bullish on technical buying with WTI +$1.36. Singapore paper is cautious and not really reflecting crude with 180cst +$1.50 and 380cst +$1.25 for Oct, and Nov 180 cst +$1.80 and 380cst +$1.20 with MGO Oct contracts +$0.55 and for Nov at +$0.56. The cargo market is mirroring paper with 180cst +$1.89, 380cst +$2.47 and MGO +$0.47.

The Singapore heavy residual inventory saw a massive draw of -1.97 mbbl to 19.78 mbbl as arrivals are heard to have been delayed. The Singapore fuel oil price rebounded up range $1.5 to $2.5 during the Platts window last Friday. The delivered premium recovered to app. $1.00 above cargo prices. This morning, fuel is trading flat.

High premiums for prompt deliveries:

380cst: $452
180cst: $444
MGO: $664

Fujairah (delivered indications 27/9)

380cst: $447
180cst: $470
MGO: $730

Rotterdam

During the last trading session (Only barge trade deals of >2 KT reported) 88KT was traded in the MOC between 430,50-432,00 with Litasco and Totsa as the main sellers to Cargill, BP and Koch as the main buyers.

LSFO NWE market is healthy with volumes available, but the contango structure also providing an incentive to hold oil in storage. The week closed with the hi-lo assessed at $14.50/mt, after seeing significant fluctuation since its beginning. The barge-cargo also settle at $4.50/mt Friday, after being seen in negative territory Thursday.

380cst: $437
(1.0%): $454
180cst: $452
(1.0%): $472
DMB: N/A
MGO 0.1%S: $687