---

Oil futures have already retreated during morning trade. Around middaythey have breached first support lines. Prices have been weighed down by some profit taking after Friday's highs and by technical selling triggered by the breach of the first supports. The fact that equities have marked some losses given investors' discontent regarding the outcome of the EU's summit and the dollar has advanced, has added to the pressure on oil futures. Analysts expect new impulsions with the opening of NYMEX floor trading. If oil prices fall through more supports in the course of the day, more selling orders are likely to be triggered.

Oil futures consolidated within their technical range in electronic morning trading, raising until resistance lines (947.00 dollars for G.Oil and 99.05 dollars for the WTI crude) at midday, supported by the stronger euro and a rise in equity markets that were lifted by a string of positive news, e.g. the German Bundesbank's comment that it would be ready to provide the IMF with bilateral credits, China's announcement that it would launch two funds that are to invest some 300 billion dollars in the European and US economy and news that three more countries would join the resolutions of the EU summit. When the resistance lines proved strong, market participants took profit, sending prices lower before the whole complex unexpectedly surged upward. The late rally saw trading volume reaching as high as eight times normal levels at some points. In the absence of any specific news affecting the market, traders said the run-up likely was driven by preprogrammed buy orders designed to kick in when prices hit specific support lines.

ICE Gasoil contract for December delivery settled at 932.00 dollars on Friday. This was 16.25 dollars below Thursday's settlement. With some 48,500 contracts the traded volume was below average.

The Stochastic oscillator is still bearish at NYMEX and ICE charts this morning. At the WTI chart, the two lines of the indicator are converging, giving markets a buying signal should they cross. But technical analysts see prices in consolidation with room to the downside today as a short-term downtrend has formed at all charts. The first support for the WTI is at 99.00 dollars today, its first resistance is seen at 99.90 dollars. The Brent's first resistance is seen at 109.00 dollars, its first support is at 107.10 dollars.

U.S.

Nymex acces losing. Oil futures trade lower in Asia and on Globex electronic trading platform this morning, losing considerable ground as market participants take profit. The G.Oil in London and NYMEX crude fell through first support lines early. The traded volume is above average.

Houston (ex-wharf indications 9-12)

380cst $625
180cst $663
MGO $958

Very tight avails for 180 cst

New Orleans (ex-wharf indications 9-12)

380cst $627
180cst $666
MGO $961

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

Crude is bouncing back up, gaining with WTI +$0.83. Singapore paper is reacting with +$0.50 for 180cst and +$1.10 for 380cst for Dec, and for Jan 180 cst -$0.45 and 380cst +$1.50 with MGO Dec contracts at -$1.15 and for Jan -$1.14. The cargo market is only starting to react to the bearishnes, losing with 180cst -$21.65, 380cst +$21.82 and MGO -$2.25.

Friday’s Singapore fuel oil market was fundamentally weaker due to more on-specification inflows arriving into East Asia, with cash premiums for both the 180cst and 380cst grades plummeting to near two-month low levels, with the 380-cst value falling below $10.00/mt to Singapore spot quotes for the first time since Oct. 11. Bunker fuel oil swaps closed the week posting $1.00-3.50/mt losses at the front and slight gains at the back end of the forward curve. This morning markets are trading slightly lower.

High premiums for prompt deliveries.

380 cst $650
180 cst $675
MGO $935

ARA (Amsterdam - Rotterdam - Antwerp)

Bunker fuel oil levels in Northwest Europe softened Friday on slightly weaker oil prices that were trading sideways ahead of the UStrading day, lacking direction as markets participants were waiting for the outcome of the EU leaders’ summit. The hi-lo fuel oil bunker fuel spread continued to widen on reduced low sulfur fuel oil output and lower high sulfur fuel values due to closed arbitrage in Asia. The 380 CST HSFO and LSFO spread in Antwerp was heard at $42- 43/mt Friday, levels last seen during July. The same spread in Rotterdam was heard $40/mt. Low sulfur fuel oil cargoes have been supported by good utility demand in the Mediterranean and lower refinery output across Europe.

Rotterdam

Indications for delivered bunkers:

380cst : $ 609
(1.0 %) :$ 651
180cst: $ 629
(1.0 %):$ 674
MGO 0.1%S: $929