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Technical indicators: neutral to bullish

Oil prices traded in a narrow range during the day and rose slightly only in late NYMEX session and after-hours trading when WTI crude breached first resistance line. Oil prices are still in a short-term downtrend that might be breached today. Stochastic indicator gives a slightly bullish signal, RSI is still in neutral territory this morning. First WTI crude support line seen at 80.65 dollars today, first resistance line at 82.70 dollars.

Oil prices are expected stronger today but due to the absence of any important fundamentals, still in close relation to the euro/dollar parity. First WTI crude resistance already breached.

ICE Gasoil October is expected to open 2,50 to 4,00 dollars lower at about 701,00 dollars/ton after settling at 704,25 dollars (official settlement price) Thursday night. This was 1,75 dollars below Wednesday's settlement. Volume with some 46,100 deals on average.

U.S.

Nymex Access : Oil futures are rising in Asian trading hours and NYMEX electronic trading this morning, extending Friday's gains on the back of the rising euro. No news in the markets. The traded volume is above average.

Houston (ex-wharf indications 22-10)

380cst: $461
180cst: $481
MGO: $744

Very tight avails for 180cst

New Orleans (ex-wharf indications 22-10)

380cst: $463
180cst: $483
MGO: $747

Singapore (correct as of 1430hrs local time)

Crude is rising sharply with WTI +$2.06. Singapore paper is following with 180cst +$10,90 and 380cst +$10,75 for Nov, and Dec 180 cst +$10,50 and 380cst +$10,75 with MGO Nov contracts +$1.71 and for Dec at +$1.72. The cargo market is yet to react still on the drops from Thursday with 180cst -$6.14, 380cst -$6.22 and MGO -$1.15.

The Singapore fuel oil markets reclaimed back the previous day loss, up more than $6.0/mt on stronger crude closing. The delivered bunker premiums were ranging $1.0 to $2.5 above cargo prices yesterday.

High premiums for prompt deliveries:

380cst: $473
180cst: $483
MGO: $708

Fujairah (delivered indications 25/10)

380cst: $479
180cst: $500
MGO: $735

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 66KT was traded in the MOC between 442,50-445,00 with Litasco and Totsa as the main sellers to mixed buyers.

Northwest European high sulfur fuel oil barges dropped $3.00/mt Friday to $443.50/mt amid weak regional demand and tailing crude movement. Supply fundamentals were mixed, in that blended bunker product remained tight while generally HSFO in the region was plentiful. Volumes out of the Baltic are putting pressure on prices. HSFO demand waned in the ARA as the week progressed. Arbitrage economics to Singapore were still closed. Similar fundamentals were inhabiting the Mediterranean market in that there was plenty of raw product but blended bunker fuel was less available, sources said. The Med-North physical differential stayed at $2.25/mt. In the low sulfur fuel oil market the week closed with the hi-los having gained $8/mt since Monday when it was assessed at $10.25/mt, as fundamentals in NWE were supported by traders employing a cash & carry move, taking advantage of the contango and subsequently holding back from selling product prompt. The contango was also seen to be steadily narrowing during the week, reflecting strengthening fundamentals. However, arbitrage inflows (especially US) continued to keep market strength capped.

380cst: $459
(1.0%): $484
180cst: $476
(1.0%): $503
DMB: N/A
MGO 0.1%S: $721