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Technical indicators: neutral

Oil prices trade in a narrow lateral range in the morning, as analysts had forecasted. NYMEX crude resistance at 90.00 dollars was hit but proved strong. No news in the markets. The Alaskan pipeline shut down is the only bullish topic for the time being.

Friday, oil prices tumbled in late NYMEX session as the dollar rose against the euro, only to rebound in after-hour trading on technical buying after ICE brent and ICE gasoil supports proved strong. Overnight, prices also got support from the Alaskan pipeline leak.

ICE Gasoil January is expected to open 2.00 to 3.50 dollars down at about 766.25 dollars/ton after settling at 769.00 dollars (official settlement price) Friday night. This was 6.25 dollars below Thursday's settlement. Volume with some 41,800 deals slightly below average.

The technical downtrend will remain intact as long as the important 90.00 dollar WTI crude resistance proves strong. Since the Stochastic indicator remains in bearish territory and the RSI is still neutral, technical analysts do not expect the trend to be reserved today. The first support for the WTI crude is seen at 88.00 dollars today, the first resistance at 90.00 dollar.

U.S.

NYMEX losing. Global oil prices are easing in Asian trading hours and electronic Globex trade this morning, partly erasing overnight gains that came about after on Saturday the Trans Alaska pipeline that carries 12 percent of U.S. crude output was shut down after a leak was discovered. WTI crude lingers below 89.00 dollars. The traded volume is well above average.

Houston (ex-wharf indications 10/1)

380 cst $512
180 cst $532
MDO $774

Very tight avails for 180 cst

New Orleans (ex wharf indications 10/1)

380 cst $515
180 cst $535
MDO $778

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

Crude is bouncing up slightly with WTI +$0.27. Singapore paper is mixed with Jan +$0.30 for 180 cst and +$0.45 for 380 cst, and for Feb 180 cst +$0.25 and 380cst +$0.30 with MGO Jan contracts at -$0.10 and for Jan at -$0.14. The cargo market is reacting to the last week's sell off with 180cst -$6.38, 380cst -$5.36 and MGO -$1.48.

The Singapore fuel oil market fell more than 5.0 usd last Friday during the Platts window. The Asian crack spreads strengthen on the back of strong buying interest. The Singapore heavy residual inventory showed a draw of -1.8 mbbl to 19.83 mbbl; a seven week low, due to a combination of robust bunker demand and lower incoming cargoes. The delivered bunker premiums remained strong, more than $6.0 above cargo prices last Friday. Both markets are trading slightly down at the moment.

High premiums for prompt deliveries.

380 cst $524
180 cst $534
MDO $790

Fujairah (delivered indications 10/1)

380cst: $525
180cst: $560
MGO: $844

Rotterdam (delivered indications)

Friday (Only barge trade deals of >2 KT reported) In the MOC 96KT was traded between 499.50-505.00 with Koch as the main seller to RWE as the main buyer.

The NWE HSFO markets are still supported by low blending activity and the open Asian arbitrage. Loading delays cause tightness on the prompt HSFO requirements. The LSFO is still being sluggish, could prompt suppliers to opt for LSFO to meet the prompt HSFO demand. 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: $506
(1.0%): $513
180cst: $519
(1.0%): $527 (very low avails)
MGO 0.1%S: $775