---

Oil prices hardly changed this morning trading sideways in a narrow range. There's much insecurity ahead of this weekend's EU summit and without decisive fundamental news markets are lacking direction. Given this insecurity and recent events, the impact of the euro/dollar parity on oil futures has slightly decreased. Analysts expect some slight dips after the opening of NYMEX floor trading, as investors might sell their positions.

Weighed down by the bearish technical constellation, declining equities and a stronger dollar, oil prices started lower Yesterday morning, hitting their first short-term supports. When the dollar dropped abruptly at midday, oil prices started an unexpected rally. China's threat to sell large amounts of its dollar reserves had alarmed traders outside the USA who then invested into dollar-nominated oil that suddenly had become much cheaper. During the session in New York, oil prices swung broadly with equities and the dollar-euro exchange rate as conflicting headlines out of Europesuggested advances or roadblocks on the path toward a plan. At one point, a summit planned for this weekend appeared in doubt. So, after hitting intraday highs oil futures once again tested their support lines and settled significantly lower before jumping back up again late in the session. WTI crude remained under pressure, weighed down by the slow USdemand. Mixed USindicators released during the day had little influence on the markets and were no support to the contract.

ICE Gasoil contract for November delivery settled at 936.00 dollars on Thursday. This was 12.25 dollars below Thursday's settlement. With some 66,100 contracts the traded volume was slightly above average.

Both the Stochastic and the RSI indicators are bearish at the WTI and brent charts this morning while at the G.Oil chart only the Stochastic oscillator gives a bearish signal. As technical analysts had expected, oil futures hit their support lines yesterday but failed to breach them as the RSI at the G.Oil chart stayed above the 70% line, not providing more downside to prices. Still, technical analysts are bearish this morning, despite traders' main focus being set on the forthcoming G20 summit. Oil prices will remain susceptible to fluctuations in the forex and equity markets. The WTI crude is supported at 84.75 dollars today, its first resistance is seen at 87.15 dollars. The Brent's first resistance is seen at 110.00 dollars, its first support is at 107.30 dollars.

U.S.

Nymex Access gaining. Oil futures are little changed in East Asia and Globex electronic trade this morning, taking their breath after Thursday's late rally. The traded volume is about on average. Traders' main focus today will be on news about the G20 summit.

Houston (ex-wharf indications 20-10)

380cst $662
180cst $708
MGO $978

Very tight avails for 180 cst

New Orleans (ex-wharf indications 20-10)

380cst $665
180cst $711
MGO $981

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

Crude is creeping back up with WTI +$0.25 Singapore paper is more bulish gaining with +$7.65 for 180cst and +$7.75 for 380cst for Nov, and for Dec 180 cst +$7.65 and 380cst +$7.75 with MGO Nov contracts at +$1.13 and for Dec at +$1.13. The cargo market is now reacting to Yesterday's losses with 180cst -$10.54, 380cst -$11.44 and MGO -$0.80.

The Singapore fuel oil markets fell more than -$10.5 during the Platts window yesterday. The delivered bunker premiums were up to estimate $19.00 above the cargo prices yesterday as sellers move their prices up as crude strengthen considerably after the window. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $659
180 cst $669
MDO $904

ARA (Amsterdam - Rotterdam - Antwerp)

Sentiment in the Northwest market remained bearish Yesterday on weaker fuel oil prices that tracked an more than $2/barrel drop in Brent crude prompted by stronger US dollar and Europe’s ongoing debt crisis. Oil markets seem to be driven my macroeconomic sentiment, with weak demand. Rotterdamand Antwerpsaw reduced levels of trading with suppliers still very tight on high sulfur fuel. Ongoing HSFO shortages continued to cause operational delays at loading installations in Rotterdam. Low sulfur fuel oil supplies in Antwerpimproved slightly after some blending delays at Totsa terminal in the port earlier in the week caused some shortages. In the MOC 1% was traded at $ 656-650 with hs $ 636-642 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 637
(1.0 %) :$ 657
180cst: $ 654
(1.0 %):$ 676
MGO 0.1%S: $ 955