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Oil prices retreated during morning trade oil, with ICE Gasoil and Brent falling until near their first supports. The EU's summit did not bring about any decisive solutions, as had already been expected. Yet, politicians were able to find an agreement on the issue of the recapitalization of banks and the reinforcement of the EFSF. Decisions are expected to be made during a second summit scheduled on Wednesday. Currently, oil prices come back from their lows, following the direction of equities.

Weighed Futures at ICE and NYMEX had traded sideways in a narrow range Friday morning, before they sharply rose in the early afternoon along with equities and the euro. Fitch's announcement to postpone the downgrade of France's banks, as well as the optimism ahead of the EU's summit last weekend, triggered some buying orders. Against this backdrop several short-term resistances were breached, technical buying orders adding to this surge. As the Euro and equities were able to retain their gains ahead of the weekend, market participants at ICE and NYMEX took some profit, which made prices pull back from their earlier highs during late evening trade.

OPEC will consider altering output in response to an increase in Libyan production, Kuwait’s Oil Minister Mohammad al-Busairy told reporters at a conference at the Dead Seain Jordan Yesterday. Current prices are reasonable for exporters and importers, al-Busairy said. The next OPEC meeting is scheduled to meet 14th December.

ICE Gasoil contract for November delivery settled at 955.50 dollars on Friday. This was 19.50 dollars above Thursday's settlement. With some 63,400 contracts the traded volume was slightly above average.

The Stochastic indicator has lost its bearish impact and already signals some upward correction. Technical analysts forecast a steady tendency throughout the complex this morning, but don't expect oil futures to leave their current range before the EU's summit on Wednesday. They see the Brent's range between 107.15 and 111.90 dollars and the WTI crude's range between 84.00 and 89.70 dollars. The WTI crude is supported at 85.95 dollars today, its first resistance is seen at 88.90 dollars. The Brent's first resistance is seen at 111.90 dollars, its first support is at 109.25 dollars.

U.S.

Nymex Access gaining. Oil futures edge higher in East Asiaand Globex electronic trade this morning, slightly recovering after Friday's profit taking. The traded volume is about on average. Traders' main focus today will be on the opening of European markets, on news about the Eurozone's debt crises as well as on today's economic indicators.

Houston (ex-wharf indications 21-10)

380cst $667
180cst $713
MGO $993

Very tight avails for 180 cst

New Orleans (ex-wharf indications 21-10)

380cst $669
180cst $715
MGO $996

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

Crude is gaining bullish momentum with WTI +$1.81 Singapore paper is bulish still, gaining with +$6.60 for 180cst and +$6.05 for 380cst for Nov, and for Dec 180 cst +$6.50 and 380cst +$6.05 with MGO Nov contracts at +$1.01 and for Dec at +$1.00. The cargo market is starting to react to the bullishness, gaining with 180cst +$7.62, 380cst +$8.01 and MGO +$1.10.

The Singaporefuel oil markets were up more than +$7.50 during the Platts window last Friday tracking the volatile crude. The Singaporeheavy residual inventory build marginally +0.3 mbbl to 17.14 mbbl. The inventory is still at a recent low. The delivered bunker premiums were slipped to around $17.00 above the cargo prices. This morning markets are trading slightly lower.

High premiums for prompt deliveries.

380 cst $669
180 cst $677
MDO $920

ARA (Amsterdam - Rotterdam - Antwerp)

The values in the main Northwest European bunker hubs firmed by about $5-9/mt Friday, following stronger FOBRotterdam barges on a $2.4/barrel rise in day-on-day outright Brent crude prices. Despite stronger crude futures, the sentiment on the oil market remained one of both nervousness and caution ahead of the weekend’s EU summit in Brussels. Trading activity remained mixed. The high sulfur fuel oil market in Rotterdamremained very tight on ongoing tightness, prompted by some VLCCs waiting supply. Congestion at Rotterdamloading installations continued to cause operational delays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 640
(1.0 %) :$ 660
180cst: $ 665
(1.0 %):$ 687
MGO 0.1%S: $ 953