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Technical indicators: neutral to bullish immediate term / neutral to bearish medium term

Oil climbed up to its first resistances in the morning, oil prices currently retreating, testing first supports at ICE as well as at NYMEX. Standard & Poor's' decision to downgrade the US' credit ranking from AAA to AA+ not only weighed on Asian stock exchanges but also on oil futures, market participants say. Insecurity among investors still remained, even though the G 7 nations promised to secure the stability of markets. Many investors now wait for the opening of US markets in the afternoon and for reactions to the US ' downgrade lines.

Oil prices dropped sharply in electronic morning tradingo on Friday, falling through various support lines and hitting intraday lows. When investors took the chance to cover their short positions, oil recovered, breaching first resistance lines. Eventually, the important resistances proved strong and despite positive US employment figures released in the afternoon, oil futures lost ground later in the session and settled lower across the complex.

ICE gasoil for August delivery settled at 912.50 dollars on Friday. This was 21.50 dollars below Thursday's settlement. With some 45,700 contracts the traded volume was below average.

The stochastic indicator doesn't give any clear signals at NYMEX and ICE charts this morning, yet both indicators, Stochastic and RSI, are in oversold territory. Last week's steep price decline took much of the bearish potential out of the markets. Thus technical analysts don't see any more technical selling for the time being, unless futures fall below Friday's intraday lows. The first support for the WTI crude is seen at 83.00 dollars, its first resistance at 84.95 dollars. The Brent's first resistance is seen at 107.40 dollars, its first support is at 105.00 dollars.

U.S.

Nymex Access losing: Oil futures dropped and Asian stocks fell this morning after the USA lost its AAA credit rating. The WTI crude lingers below 84.00 dollars for a barrel, the lowest in more than eight months. The traded volume is significantly above average.

Houston (ex-wharf indications 5-8)

380 cst $673
180 cst $704
MDO $995

New Orleans (ex wharf indications 5-8)

380 cst $676
180 cst $607
MDO $999

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

Crude is slowing after the huge drops last Friday losing with WTI -$0.43. Singapore paper is ahead of crude, gaining with +$3.35 for 180cst and +$0.80 for 380cst for Aug, and for Sep 180 cst +$5.70 and +$3.65 for 180cst with MGO Aug contracts at -$0.01 and for Sep at -$0.05. The cargo market is fully adopting last week's bearishness, losing with 180cst -$30.72, 380cst -$29.87 and MGO -$6.10.
v The Singapore fuel oil markets dived more than $30.00 during the Platts window last Friday. The Asian Fuel Oil cracks strengthen sharply. The low outright prices have dampened seller interest. The delivered premiums were up to $20.0 above cargo prices last Friday amidst a very volatile crude movement environment after the window. This morning both markets are trading slightly down.

High premiums for prompt deliveries.

380 cst $647
180 cst $656
MDO $911

Fujairah (delivered indications 8-8)

380 cst $665
180 cst $712
MDO $1068

Rotterdam

Last Friday in the MOC hsfo was traded between 614-620 usd and lsfo between 637-638 usd

Indications for delivered bunkers:

380cst : $ 622
(1.0 %) :$ 647
180cst: $ 649
(1.0 %):$ 674
MGO 0.1%S: $ 915