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Technical indicators: neutral to bearish

Oil levels are hovering just below the 89.00 dollars mark. More direction may come from U.S. unemployment data and Cushing inventories later today.

Yesterday, oil prices slumped as the dollar gained against the euro on signs that the U.S. economy is improving. A stronger greenback makes dollar-traded commodities like crude oil more expensive for investors, dampening demand and leading to lower prices. After breaching the 88.50 dollars support line, many selling orders were followed.

ICE Gasoil January is expected to open -5.50 to -7.00 dollars at about 769.00 dollars/ton after settling at 775.25 dollars (official settlement price) Thursday night. This was 2.25 dollars below Wednesday's settlement. Volume with some 37,600 deals below average.

The Stochastic indicator remains bearish today, while the RSI is still neutral. The first support for the WTI crude is seen at 87.85 dollars today, the first resistance at 90.00 dollar.

U.S.

NYMEX little changed. Global oil prices advanced slightly in Asian trade Friday after an overnight decline promoted investor buying. WTI crude lingering below 89.00 dollars. No news in the markets. The traded volume is above average.

Houston (ex-wharf indications 6/1)

380 cst $503
180 cst $532
MDO $783

Very tight avails for 180 cst

New Orleans (ex wharf indications 6/1)

380 cst $505
180 cst $535
MDO $787

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is losing again with WTI -$1.87. Singapore paper is tracking crude with Jan -$6.25 for 180 cst and -$5.50 for 380 cst, and for Feb 180 cst -$6.50 and 380cst -$5.50 with MGO Jan contracts at -$6.25 and for Jan at -$1.50. The cargo market is one day behind crude and paper with 180cst +$11.33, 380cst +$12.13 and MGO +$2.23.

The Singapore fuel oil market rebounded more than $11 yesterday during the Platts window, tracking previous strong crude closing. The supply in the market was tighter on lower incoming cargoes for this month which is estimated at 3.1 million mt. The delivered bunker premiums also strengthen more than $5.0 above cargo prices yesterday. Bunker fuel swaps lost a little along the curve both in Rotterdam and Singapore. Forward curve maintains backwardation in the front in both markets, though it is a little less pronounced for Singapore papers. Both markets are trading down this morning.

High premiums for prompt deliveries.

380 cst $522
180 cst $530
MDO $792

Fujairah (delivered indications 7/1)

380cst: $521
180cst: $539
MGO: $797

Rotterdam (delivered indications)

Yesterday (Only barge trade deals of >2 KT reported) In the MOC 88KT was traded between 501.00-510.00 with Litasco and Cargill as the main sellers to RWE as the main buyer.

The NWE HSFO markets are still supported by low blending activity and the open Asian arbitrage. The Kazimah III was reported loading Yesterday, and at least one other VLCC is fixed for mid Jan loading. The LSFO markets are in reverse; high stocks and little demand dominate the pricing.

Indications for delivered bunkers:

380cst: $508
(1.0%): $515
180cst: $521
(1.0%): $535 (very low avails)
MGO 0.1%S: $775