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Oil futures traded steadier this afternoon, however, as market participants avoid larger transactions ahead of the publication of important US employment data. Should the data prove worse than forecast, investors are likely to liquidate their long positions. In this case, the WTI Crude might fall back to this week's low at 97.00 dollars.

While ICE and NYMEX futures were poised on a high level in electronic morning trading, NYMEX session saw a sharp selloff when market participants took profit for geopolitical and economic reasons. US unemployment figures came out worse-than-expected and European Union foreign ministers did not agree on broader sanctions on Iranon Thursday. News, that Libyan crude oil output has reached 840,000 barrels a day, over half of the country's pre-civil war production, mainly weighed on the ICE contracts reducing the brent-WTI spread to below 9 dollars. When eventually first support lines were breached, a string of technical selling orders sent oil prices to fresh intraday lows from which they barely recovered, settling fairly lower in the end.

OPEC may agree a collective quota close to 30 million barrels a day at its next meeting the 14th of December, but without specifying individual production quotas. Iran, Venezuela and Algeria had recently opposed new quotas.

ICE Gasoil contract for December delivery settled at 946.00 dollars on Thursday. This was 19.25 dollars below Wednesday's settlement. With some 62,100 contracts the traded volume was slightly above average.

The Stochastic oscillator at the ICE charts has changed direction and is giving a selling signal, while the one at the WTI chart lingers in neutral territory. Despite the bearish constellation at the brent and the G.Oil chart, technical analysts take a neutral position this morning, Thursday's profit taking having erased most of the bearish potential and the WTI support at 98.90 dollars and 108.40 dollars for the brent having proved strong. Ahead of the weekend and with important USindicators being released in the afternoon, market participants are expected to consolidate their positions today. Should the lines of the WTI's Stochastic oscillator cross in the course of the day, prices are seen hitting Thursday's lows below which a string of technical selling orders would be triggered. The first support for the WTI is at 99.80 dollars today, its first resistance is seen at 101.20 dollars. The Brent's first resistance is seen at 110.50 dollars, its first support is at 108.75 dollars.

U.S.

Nymex acces gaining. Oil futures are modestly higher in Asiaand on Globex electronic trading platform this morning in a technical reaction to Thursday's overdone losses after crude oil support lines had proved strong yesterday. The traded volume is on average. Market participants will eye the release of some important USindicators for direction today.

Houston (ex-wharf indications 1-12)
380cst $643
180cst $679
MGO $977

Very tight avails for 180 cst

New Orleans (ex-wharf indications 1-12)

380cst $645
180cst $681
MGO $981

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

Crude is easing, but not turning yet with WTI +$0.67. Singapore paper is turning ahead of crude, losing with -$1.30 for 180cst and -$3.00 for 380cst for Dec, and for Jan 180 cst -$2.30 and 380cst -$3.25 with MGO Dec contracts at -$0.35 and for Jan -$0.20. The cargo market is slowing as well with 180cst +$2.26, 380cst +$1.31 and MGO +$0.10.

The Singapore fuel oil markets were up marginally $1.00 to $2.00 during the Platts window yesterday. The Singapore heavy residual inventory reported a slight build of +0.54 mbbl to 17.63 mbbl. The delivered bunker premiums were around $14.00 above the cargo prices yesterday. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $669
180 cst $672
MGO $930

Fujairah (delivered indications 2-12)

380cst $693
180cst $713
MGO $1040

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest European bunker values edged higher Wednesday, following stronger outright oil prices, while demand across the main hubs was still weak. Brent crude prices surged by more than $2/barrel day-on-day in the afternoon after global central banks launched coordinated action to ease strains on financial markets and boost lending. High sulfur fuel oil in ATA remained tight as one VLCC was heard to be loading in Rotterdam for Singapore December 16 and another one for December 19. Prompt product remains tight this week. Antwerp reported low sulfur fuel oil shortages due to some tightness.

Rotterdam

Indications for delivered bunkers:

380cst : $ 639
(1.0 %) :$ 673
180cst: $ 657
(1.0 %):$ 686
MGO 0.1%S: $965