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Oil futures have already lost ground during morning trade, in the wake of weak equities and a dropping euro. As the technical constellation provided for additional bearish impetus, supports have been breached at ICE and NYMEX. Decisive momentum is still lacking. Only positive USeconomic data might give oil futures uwards some support in the afternoon.

Last Friday, oil futures edged modestly higher in electronic morning trading in an expected technical reaction to Thursday's losses and supported by the weaker dollar. When the bearish technical constellation assumed control, market participants took profit from long positions. First support lines were breached during NYMEX session, triggering a series of technical selling orders. Oil prices eventually settled near their intraday lows.

ICE Gasoil contract for December delivery settled at 973.00 dollars on Friday. This was unchanged vs Thursday's settlement. With some 72,000 contracts the traded volume was well above average.

Iran's OPEC governor, Muhammad Ali Khatibi, warned sanctions on petroleum producers were self-defeating for consuming nations and warned them against interfering in OPEC's next meeting. Though Khatibi didn't name any country, sanctions on Iranhave hindered production despite the country's holding OPEC's third-largest oil reserves. The U.S.government is set to unveil new sanctions on Tehran's energy sector next week, after the IAEA had found sufficient evidence on a military purpose of Iran's nuclear program. But last month, the International Energy Agency warned that insufficient oil and gas investment in the Middle Eastand North Africacould push oil prices to 150 dollars a barrel.

The Stochastic oscillator is still bearish at all charts this morning, so at the oversold level at the brent chart. Even though Friday's profit taking paved the way for a modest upward correction, technical analysts still see more downside after important support lines had been breached Thursday. The WTI is supported at 97.00 dollars today, its first resistance is seen at 100.30 dollars. The Brent's first resistance is seen at 110.00 dollars, its first support is at 107.00 dollars

U.S.

Nymex Access little changed: Oil futures are little changed to Friday in Asian trading hours and on Globex electronic trading platform this morning as market participants are waiting for direction from equity and forex markets. Friday's profit taking has removed some of the bearish potential but should no bullish fundamentals support the markets today, analysts expect more downside on technically triggered selling orders. The traded volume is below average.

Houston (ex-wharf indications 18-11)

380cst $644
180cst $694
MGO $1008

Very tight avails for 180 cst

New Orleans (ex-wharf indications 18-11)

380cst $647
180cst $697
MGO $1012

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

Crude is losing still, dropping with WTI -$2.71. Singapore paper is mirroring it, losing with -$16.55 for 180cst and -$15.75 for 380cst for Dec, and for Jan 180 cst -$17.00 and 380cst -$16.00 with MGO Dec contracts at -$2.40 and for Jan at -$2.51. The cargo market is in line with crude and paper, losing with 180cst -$17.56, 380cst -$16.79 and MGO -$2.00.

The Singapore fuel oil markets lost more than $16.50 during the Platts window on the close of last week. Market remains firm though seems to be easing as the backwardation structure also eased. The delivered bunker premiums were around $16.00 above the cargo prices last Friday. This morning markets are trading lower.

High premiums for prompt deliveries.

380 cst $659
180 cst $664
MGO $960

Fujairah (delivered indications 21-11)

380cst $665
180cst $687
MGO $1040

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

Softer bunker values prompted by a $17.50/mt drop in FOBRotterdambarges Thursday evening prompted healthy demand across the main Northwest European bunker hubs Friday. The high sulfur fuel oil prices for prompt delivery in Antwerpcontinued to rise over Rotterdam’s levels on tighter supplies at local refineries. Rotterdamcontinued to see very short HSFO supplies as well on ongoing arbitrage movements to Asia. Three VLCCs were expected to get loaded for Singapore early December, according to sources. Prompt product remains very tight.

Rotterdam

Indications for delivered bunkers:

380cst : $ 613
(1.0 %) :$ 645
180cst: $ 639
(1.0 %):$ 665
MGO 0.1%S: $965