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Technical indicators: neutral to bullish

Oil prices are rising, rebounding from their biggest weekly loss in three months, on optimism an agreement to rescue Ireland’s banks will prevent Europe’s debt woes from sapping economic growth.

Oil prices traded very volatile Friday, crude oil experiencing its biggest weekly loss in three months, after futures fell further in late NYMEX session and after-hour trading on China's credit tightening policy that is expected to slow growth and crimp fuel demand in the world’s largest energy-consuming country.

ICE gasoil December is expected to open 6.00 to 7.00 dollars up at about 712.00 dollars/ton after settling at 705.50 dollars (official settlement price) Friday night. This was 10.00 dollars below Thursday's settlement. Volume with some 81,800 deals above average.

The steep downtrend is still intact, but RSI and Stochastic indicator give rather bullish signals and the oversold market makes un upward correction most likely. The more as important support lines proved strong Friday. First WTI crude support is seen at 81.25 dollars today, first resistance at 83.25 dollars.

U.S.

Nymex Access : Oil prices are rising in Asian trading hours and NYMEX electronic trading this morning in a technical reaction to Friday's surprise losses and supported by the stronger euro/weaker dollar. No news in the markets. The traded volume is above average.

Houston (ex-wharf indications 19-11)

380cst: $461
180cst: $482
MGO: $753
Very tight avails for 180cst

New Orleans (ex-wharf indications 19-11)

380cst: $463
180cst: $484
MGO: $755

Singapore (correct as of 1430hrs local time)

Crude is losing after last weeks gains with WTI -$0.26. Singapore paper is also losing slightyly with 180cst -$2.75 and 380cst -$2.45 for Dec, and Jan 180 cst -$2.65 and 380cst -$2.80 with MGO Dec contracts -$0.40 and for Jan at -$0.40. The cargo market is still losing with 180cst -$7.10, 380cst -$6.73 and MGO -$0.75.

The Singapore fuel oil markets rebounded more than $6.5 last Friday tracking back crude strength. The Singapore heavy residual inventory reported a draw of -2.0 mbbl to 20.97 mbbl demand improved. This month, November incoming cargoes are estimated to be only 3.1 to 3.2 million mt, which is much lower than the previous month. The December arbitrages currently stand at 3.0 million mt. The delivered bunker premiums ranged $6.5 to $7.5 above cargo prices yesterday as crude prices continue to strengthen.

High premiums for prompt deliveries:

380cst: $489
180cst: $502
MGO: $714

Fujairah (delivered indications 22/11)

380cst: $485
180cst: $517
MGO: $745

Rotterdam

Friday (Only barge trade deals of >2 KT reported) 34KT was traded at 450.50 with Petroned and Koch as the main sellers to Mercuria and Guvor as the main buyers.

The NWE HSFO markets seem to be well supplied. Although the Eastern Arbitrage is starting to open, no new VLCC fixutres have been reported yet. The Singaporean markets are seen 60 cents in normal backwardation. The HSFO Med markets are oversupplied and sluggish. For the LSFO there are some cargoes seen moved from NWE to the Med, although the arbitrage is not considered to be open yet. The NWE LSFO markets are well supplied, with stored product entering the market in December.

380cst: $461
(1.0%): $477
180cst: $476
(1.0%): $493
DMB: N/A
MGO 0.1%S: $725