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In the wake of the advancing euro oil prices initially rose above their first resistance lines (G.Oil and WTI). Carried to new highs by hopes on a comprehensive solution of the Euro zone's debt crisis even before next week's summit, the shared currency had briefly even breached the mark of 1.39 dollar. Around noon, oil futures have erased most of their gains, however. The euro and equities likewise retreated. Analysts reckon that a lasting price increase is hampered by the persistant insecurities regarding the European debt crisis.

Oil prices ended the week with more gains on Friday, supported by a strong euro and a rise in equities after the release of better-than-expected USretail sales and on hopes that concrete measures to solve the euro zone debt crisis would be seized at the G20 summit at the weekend. ICE and NYMEX futures breached several resistance lines in the process, triggering ever more buying orders. The brent-WTI spread hit a record high of 27.90 dollars for a barrel when traders shifted positions ahead of the expiry of the brent contract for November delivery but reduced to slightly over 23.00 dollars for a barrel for the December contracts. Even though oil's rise was limited by profit taking in late trading, futures settled near fresh month highs in the end.

ICE Gasoil contract for November delivery settled at 952.00 dollars on Friday. This was 31.25 dollars above Thursday's settlement. With some 92,500 contracts the traded volume was well above average.

The Stochastic indicator at the WTI chart is giving a slightly bullish signal this morning while the one at the ICE charts is neutral in the overbought level. So a possible correction of the overbought markets could reveal some downside after Friday's rally. Still, analysts regard the short-term uptrends as strong and see oil prices progress within the given trendchannels today. The WTI crude is supported at 84.30 dollars today, its first resistance is seen at 87.80 dollars. The Brent's first resistance is seen at 114.45 dollars, its first support is at 110.15 dollars.

U.S.

Nymex Access losing. Oil futures are trading marginally lower in East Asiaand Globex electronic trade this morning as market participants take some profit after Friday's rally. The traded volume is slightly above average with trading interest at the NYMEX shifting to the WTI December contract, the contract for November delivery expiring Thursday.

Houston (ex-wharf indications 14-10)

380cst $657
180cst $703
MGO $948

Very tight avails for 180 cst

New Orleans (ex-wharf indications 14-10)

380cst $659
180cst $706
MGO $951

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

Crude is gaining bullish momentum, gaining with WTI +$2.67 Singapore paper is bulllish as well, gaining with +$10.75 for 180cst and +$10.60 for 380cst for Nov, and for Dec 180 cst +$10.75 and 380cst +$10.60 with MGO Nov contracts at +$3.06 and for Dec at +$3.10. The cargo market is cautiously reacting to the bullishness with 180cst +$3.69, 380cst +$3.70 and MGO +$1.97.

The Singapore fuel oil markets were up around $3.5 during the Platts window last Friday. The delivered bunker premiums were around $19.50 above cargo prices as crude strengthened after the window. Despite the higher outright prices, market demand was still robust as buyers want to secure their requirements earlier in view of the tight supply conditions. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $687
180 cst $701
MDO $916

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest European values escalated Friday as Brent crude traded over $114/barrel, up $4/b in the afternoon amid optimism for a plan to resolve the eurozone debt crisis and the US reporting better-than-expected retail sales data. Despite firming fuel oil prices, demand in Rotterdamsaw thin levels of trading over the day. Three VLCCs loading in Rotterdam for Singapore continued to cause very tight high sulfur fuel oil availability. In the MOC 1% was traded at $ 655.25-676 with hs $ 641-645.50 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 654
(1.0 %) :$ 675
180cst: $ 673
(1.0 %):$ 695
MGO 0.1%S: $ 971