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Technical indicators:

Oil prices kept losing ground in late NYMEX session and after-hours trading as the dollar regained ground vs the euro and equity markets dropped in Asia and the USA. The strong uptrend of the past days was stopped Friday. The RSI still gives neutral signals, while the Stochastic has changed direction and is giving selling signals. First WTI crude support line seen at 80.00 dollars today, first resistance line at 82.75 dollars. The 80.00 dollar support is seen as a key support level below which massive technical selling is expected.

Much will depend on 80.00 dollar support for WTI crude today. Below the level, technical selling orders are expected. Should the line prove strong, oil prices will rebound. The dollar is seen in a bit of consolidation today but with a bullish tendency.

ICE Gasoil October is expected to open 9,25 to 10,75 dollars lower at about 701,75 dollars/ton after settling at 711,75 dollars (official settlement price) Friday night. This was 12,00 dollars below Thursday's settlement. Volume with some 71,700 deals above average.

USA:

The University of Michigan's index for consumer confidence declined to 67.90 in October after 68.20 in the previous month.

Business inventories increased 0.6% from the prior month to a seasonally adjusted 1.387trillion dollars. Economists expected a 0.5% increase.

The seasonally adjusted consumer price index for September rose by 0.1% from August. Consumer prices climbed by 0.3% in August.

U.S. retail sales rose for a third consecutive month in September, posting a stronger-than-expected increase of 0.6%. Economists had projected sales would rise by 0.4%.

US Empire State Manufacturing index stands at 15.70 in September after 4,10 in August.

U.S.

Nymex Access : Oil futures are easing in Asian trading hours and NYMEX electronic trading this morning, pressured by the rising dollar and profit taking. No news in the markets. The traded volume is above average.

Houston (ex-wharf indications 15-10)

380cst: $467
180cst: $487
MGO: $742

Very tight avails for 180cst

New Orleans (ex-wharf indications 15-10)

380cst: $469
180cst: $489
MGO: $746

Singapore (correct as of 1430hrs local time)

Crude is dropping like a stone with WTI -$2.48. Singapore paper is lsoing with 180cst -$10.50 and 380cst -$10.25 for Oct, and Nov 180 cst -$10.50 and 380cst -$10.95 with MGO Oct contracts -$2.89 and for Nov at -$2.91. The cargo market is .... with 180cst -$3.58, 380cst -$4.35 and MGO -$0.78.

The Singapore fuel oil market fell more than $3.5/mt during the Platts window. Due to the volatility in crude, the Asian fuel oil cracks soften further. The delivered bunker premiums dipped slightly to between $0.5 and $1.0 above cargo prices last Friday.

High premiums for prompt deliveries:

380cst: $464
180cst: $458
MGO: $693

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 68KT was traded in the MOC between 448,50-451.00 with Litasco as the main seller to Gunvor and Petroned as the main buyers.

NW HS barges returned to contango Friday after a day in backwardation, as buying interest in the region tapered off at week’s end. Platts assessed NWE FOB HSFO barges at $449.75/mt, down $5.25/mt on the day. Thursday’s backwardated structure was driven in part by interest in arbitrage opportunities to Singapore, sources said, but no new fixtures were forthcoming Friday. December being an offloading season for material held in tanks, as such any arb barrels arriving that month will struggle to find a buyer. The Mediterranean HSFO cargoes were assessed below NWE barges for a second day, although the differential narrowed by 25 cents to $1.75/mt. About 160kt of bunker fuel was bought this week in Rotterdam for the Med market market, and two 30kt parcels were offered in the Med during Platts MOC assessment process. In the low sulfur market, healthy demand from the bunkers market in NWE failed to push up levels for the product compared with higher metals’ content oil, as good low metals availability kept pace with requirements, sources said.
380cst: $450
(1.0%): $470
180cst: $464
(1.0%): $488
DMB: N/A
MGO 0.1%S: $707