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Technical indicators: neutral immedate term / neutral to bullish medium term

European stocks opened lower today and oil prices fell, with the market yet to be entirely convinced about the efficacy of the Federal Reserve's quantitative easing policy and struggling to respond with any enthusiasm to corporate earnings news. NYMEX crude prices retreated from the 25-month highs reached during trade in Asia, falling through first support line, as participants in Europe take profit and the dollar strengthens against major currencies. The strong 87.30 dollar support for the brent prevents more losses for the time being and When ICE brent and gasoil supports proved strong oil prices came back from day's lows. No news in the markets.

Oil prices pared earlier losses in late NYMEX session and after-hour trading Friday on continued support from last week's U.S. Federal Reserve's economic stimulus package and stronger-than-expected jobs data. WTI crude traded near a two-year high in New York after employment in the U.S. increased more than forecast, signaling a recovery in fuel demand from the world’s biggest crude-consuming nation.

ICE Gasoil November is expected to open 5.00 to 6.50 dollars up at about 741.00 dollars/ton after settling at 735.25 dollars (official settlement price) Friday night. This was -2.25 dollars vs Thursday's settlement. Volume with some 40,000 deals slightly below average.

Oil prices still range within the steep but narrow uptrend that has formed last week. The upper limit of the WTI trendchannel is the strong resistance of 88.50 dollars. RSI and Stochastic indicators are still in overbought territory and signal a beginning downward correction. First WTI crude support line seen at 86,85 dollars today, first resistance at 88,00 dollars.

U.S.

Nymex Access : Oil prices are little changed in Asian trading hours and NYMEX electronic trading this morning, WTI crude trading near a two-year high, after employment in the U.S. increased more than forecast. No news in the markets. The traded volume is above average.

Houston (ex-wharf indications 5-11)

380cst: $483
180cst: $504
MGO: $773

Very tight avails for 180cst

New Orleans (ex-wharf indications 5-11)

380cst: $486
180cst: $507
MGO: $775

Singapore (correct as of 1430hrs local time)

Crude is bulish still with WTI +$0.70. Singapore paper cooling a bit with 180cst +$4.25 and 380cst +$4.75 for Nov, and Dec 180 cst +$3.85 and 380cst +$4.55 with MGO Nov contracts +$1.60 and for Dec at +$1.31. The cargo market has fully adopted the bullishness with 180cst +$8.94, 380cst +$9.49 and MGO +$1.85.

Fuel oil Nov/Dec stays also backwardated in Singapore fuel oil market. The 180CST/380CST viscosity spread came off from its 26-month high last week due to limited blend stock and cutter stock, but seams arrivals of residual fuel oil from the West could shrink the spread during this coming week. Higher crude prices triggered $5-$6 higher Spore fuel oil prices and firmer Nov/Dec and Dec/Jan time spreads. Fuel oil's December crack rose 14 cents to a discount of $7.94 to Dubai crude.

High premiums for prompt deliveries:

380cst: $493
180cst: $505
MGO: $738

Fujairah (delivered indications 8/11)

380cst: $501
180cst: $522
MGO: $745

Rotterdam

Friday (Only barge trade deals of >2 KT reported) 42KT was traded between 476-477 with Koch as the main seller to BP and Petroned as the main buyers.

Although the Eastern arbitrage still remains at uneconomical levels, two VLCC's were reported fixed for next week sailing. The HSFO Med market is not attracting any influx as the local market remains slow. The NWE LSFO markets continue to see imports out of the Americas, keeping them long.

380cst: $480
(1.0%): $500
180cst: $503
(1.0%): $527
DMB: N/A
MGO 0.1%S: $745