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After Friday's losses, oil futures rose during morning trade. With the first resistance lines having been breached, technical buying orders have been triggered. In the course of the morning oil futures have climbed over even more resistance lines profiting from a positive development at European stock markets. NYMEX Crude Oil even breached the psychologically important mark of 100.00 dollars. As important economic indicators are lacking, oil prices may probably keep track of equities and the euro/dollar-parity in the afternoon and be influenced by the technical conditions.

Trade in London and New Yorkwas quiet on Friday, the traded volume remained far below average (WTI crude less than 300,000 traded contracts which is not even half of the usual volume). Many market participants stayed at home after Thanksgiving, reducing trading activities to a minimum. Futures were down in early-morning trading when the rising dollar weighed on prices. First short-term supports were breached before midday, triggering a string of automatic selling orders. Yet the WTI's important 95.00 dollar support proved strong and futures turned positive with the opening of the equity markets in New York. But the positive sentiment did not last and so futures shed all of their gains in the afternoon, hitting fresh intraday lows to settle lower in the end, except for the WTI crude that stayed in positive territory. The dollar losing ground over the weekend, oil prices started on a positive note this morning.

ICE Gasoil contract for December delivery settled at 938.75 dollars on Friday. This was 10.75 dollars below Thursday's settlement. With some 33,400 contracts the traded volume was far below average.

The Stochastic oscillator at the WTI and the gasoil chart is bullish at the oversold level this morning. When the 95.00 dollar WTI support proved strong Friday, more bullish potential was unlocked, paving the way for an upward correction. Should first resistance lines be breached today, more technical buying orders are expected. The WTI is supported at 95.00 dollars today, its first resistance is seen at 98.80 dollars. The Brent's first resistance is seen at 108.35 dollars, its first support is at 105.80 dollars.

U.S.

Nymex acces gaining. Oil futures are higher in Asiaand on Globex electronic trading platform this morning, on speculation that the IMF loan for Italywill ease euro zone problems and on fears that sanctions against Syriaand Iranwill threaten oil supply. The traded volume is above average. There is only a few economic indicators on the agenda today, so traders will eye the dollar and equity markets for direction.

Houston (ex-wharf indications 25-11)

380cst $635
180cst $671
MGO $988

Very tight avails for 180 cst

New Orleans (ex-wharf indications 25-11)

380cst $638
180cst $673
MGO $991

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

Crude is bouncing up, surging with WTI +$2.09. Singapore paper is cautiously turning as well with +$2.05 for 180cst and +$2.35 for 380cst for Dec, and for Jan 180 cst +$3.45 and 380cst +$3.40 with MGO Dec contracts at +$0.31 and for Jan at +$0.30. The cargo market is slowing, but not yet turning with 180cst -$0.55, 380cst -$1.14 and MGO -$0.55.

The Singapore fuel oil markets fell marginally $0.50 -1.00/mt during the Platts window last Friday. The Singapore heavy residual inventory drew -0.63 mbbl to 17.10 mbbl. The delivered bunker premiums were around $15.00 above the cargo prices. Bunker fuel oil swaps lost $7.00-8.75/mt along the curve both in Rotterdam and Singapore papers moving the whole curve down. This morning both markets are trading strongly up.

High premiums for prompt deliveries.

380 cst $665
180 cst $675
MGO $925

Fujairah (delivered indications 28-11)

380cst $674
180cst $697
MGO $1040

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest European bunker values weakened Friday, following softer FOB Rotterdambarges that tracked a $0.70/barrel drop in Brent crude day-on-day prompting bearish sentiment across the main bunker hubs. Oil prices were under pressure amid concerns that Europe’s debt crisis would trigger a recession. Suppliers in Rotterdam and Antwerp were still uncertain when product availability would improves as one VLCC was expected to get loaded for Singapore at the end of the month.

Rotterdam

Indications for delivered bunkers:

380cst : $ 626
(1.0 %) :$ 655
180cst: $ 642
(1.0 %):$ 673
MGO 0.1%S: $951