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After having diverged at the opening of European markets, oil prices have climbed up to their first resistances in the course of the morning. They were supported by the euro's gains. The European currency was lifted by the announcement concerning a package of measures which are to resolve the Eurozone debt crisis. The still bullish technical situation also supported oil futures. Meanwhile oil futures have breached their second resistance lines.

Friday, Oil prices started slightly stronger in the day but lost some ground before midday on profit taking as market participants adjusted their positions. After the release of better-than-expected US nonfarm payrolls futures rose, getting additional support at that time of the day from a stronger euro and rising equity markets. While the jobs gains weren't enough to lower the unemployment rate, it offered traders some hope that the U.S.economy may be showing some signs of improvement. The rise was tempered, however, as investors turned to the crisis in Europeand Fitch's downgrading of the ratings on Italy and Spain. The Rating Agency's decision comes amid an intensifying European debt crisis. Meanwhile, fears about Greeceare still widespread. Oil futures still settled higher in the evening after a very volatile session.

ICE Gasoil contract for October delivery settled at 896.25 dollars on Friday. This was 18.25 dollars above Thursday's settlement. With some 44,500 contracts the traded volume was below average.

OPEC is likely to keep its oil production quotas unchanged at its next meeting in December, Iran's representative to the cartel said. "Oil producers and oil consumers are satisfied with current level of prices" according to Mohammad Ali Khatibi. "It is predicted most of the OPEC members to be in agreement with maintaining current level of oil production at the next meeting of the organisation in December," he said on Friday.

The Stochastic indicator is still bullish at all charts but in the overbought level, paving the way for a downward correction, while the RSI doesn't give any clear signals yet. Even though there is still more upside at the charts, the bullish momentum has lost most of its dynamics. First resistance lines were hit in early morning trade and only a rise above these levels will reveal more upside potential. Should the resistances prove strong during the day though, profit taking could trigger some selling orders in the afternoon, so technical analysts. The WTI crude is supported at 82.80 dollars today, its first resistance is seen at 84.00 dollars. The Brent's first resistance is seen at 106.50 dollars, its first support is at 104.35 dollars.

U.S.

Nymex Access gaining. ICE futures and NYMEX heating oil oscillate around their settlement levels while the WTI crude trades modestly higher in East Asiaand Globex electronic trade this morning. Short-term resistance lines limit the gains for the time being. But analysts expect some profit taking ahead of the opening of European equity markets. The traded volume is on average.

Houston (ex-wharf indications 7-10)

380cst $616
180cst $662
MGO $903

Very tight avails for 180 cst

New Orleans (ex-wharf indications 7-10)

380cst $618
180cst $664
MGO $906

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

Crude is bullish still, gaining with WTI +$1.50 Singapore paper is slowing with +$2.85 for 180cst and +$3.45 for 380cst for Oct, and for Nov 180 cst +$2.90 and 380cst +$2.30 with MGO Oct contracts at +$0.28 and for Nov at +$0.25. The cargo market is gaining still with 180cst +$7.47, 380cst +$6.59 and MGO +$2.02.

The Singapore fuel oil markets rose more than $6.50 during the Platts window on the close of the week tracking the crude. The Singapore heavy residual inventory saw a draw to 17.02 mbbl. Though there are cargoes incoming but they are mostly off specs bunker grade products yet to be blended. The delivered bunker premiums remain firm at around $20.00 above the cargo prices last Friday. Bunker fuel swaps gained app. $8.00 at the front of the forward curve and a dollar more that the backend. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $635
180 cst $645
MDO $880

Fujairah (delivered indications 10-10)

380cst $645
180cst $678
MGO $1050

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker values firmed Friday, tracking a $8.50/mt rise in FOB Rotterdam barges, that followed a $2/barrel rise in crude from Thursday’s settlement. Suppliers in the main NWE hubs reported thin trading activity. “The market is quiet. On top of ongoing high sulfur fuel oil shortages, Rotterdam was experiencing some operational delays due to strong Northwesterly winds.

Rotterdam

Indications for delivered bunkers:

380cst : $ 613
(1.0 %) :$ 633
180cst: $ 635
(1.0 %):$ 656
MGO 0.1%S: $ 904