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During morning trade oil futures have already breached first resistance lines triggering further buying orders. After the Christmas holidays and the longer weekend, the traded volume has significantly increased. Persisting tensions between the Western states and the Iran, the stronger euro, positive economic indicators from Chinaand Europeand the strong demand from Asiaduring the winter support prices. Especially in Japanand South Koreademand is increasing at the beginning of the new year. The spread between the WTI crude and the Brent has climbed to almost 9 dollars this morning. Most market players say that this is also due to the rising risk premium caused by the Iran-issue. Further momentum is provided by the bullish technical situation.

As there was no trade at ICE and NYMEX on Monday, there were no decisive developments at the European oil market. As a consequence the euro was the only possible component to show some development. The common currency traded sideways, however. Positive economic indicators from Chinaand Europe (PMI) slightly supported the euro but without British and American traders there was not enough impetus to make the currency leave its range between 1.2920 and 1.2960 dollar on the long run. In all, the market remained calm and the volume was low.

ICE Gasoil contract for January delivery settled at 924.00 dollars on Friday. This was +2.50 dollars above Thursday's settlement. With some 23,000 contracts the traded volume was far below average.

The stochastic indicator is slightly bullish for the Brent and the Gasoil this morning, giving a buying signal to the markets. Further buying impulsions might develop for the WTI in the course of the day, if the stochastic's lines cross. The WTI already trades above the psychologically important mark of 100 dollars heading for its first resistance line at 100.70 dollars. If this resistance is breached for a longer term, there will be more upward potential up to 101.50 dollars. The WTI Crude's first support is seen at 99.20 dollars today, its first resistance at 101.50 dollars. The Brent's first support is seen at 107.70 dollars, its first resistance at 109.00 dollars.

U.S.

Nymex acces gaining. Oil futures rise in East Asiaand on Globex electronic trading platform this morning. They trade significantly higher in the early morning reacting to positive impetus provided by the DAX, economic indicators and the retreating dollar (making oil futures cheaper for investors outside the USA). The traded volume is about on average. Market players eye the opening of European markets and impulsions provided by foreign exchange and today's economic data from Germanyand the USA.

Houston (ex-wharf indications 2-1)

380cst $640
180cst $676
MGO $955

Very tight avails for 180 cst

New Orleans (ex-wharf indications 2-1)

380cst $643
180cst $678
MGO $959

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

Crude is bullish, gaining with WTI +$0.63. Singapore paper is gaining as well with +$10.25 for 180cst and +$9.00 for 380cst for Jan, and for Feb 180 cst +$8.60 and 380cst +$8.70 with MGO Jan contracts at +$1.65 and for Feb +$1.67. The cargo market is in line with crude and paper, gaining with 180cst +$7.95, 380cst +$7.95 and MGO +$0.40.

The Singapore fuel oil markets closed last Friday higher, up around +$8.0 during the Platts window. The delivered bunker premiums were around $22.5 above cargo prices last Friday. Market reopens today after a long weekend break. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $689
180 cst $700
MGO $944

ARA (Amsterdam - Rotterdam - Antwerp)

The Rotterdam high sulfur bunker fuel market was fundamentally firmer on the last trading day of the year, with strength being led by Singapore where participants were buying relatively at aggressive levels ahead of the Lunar New Year. While Rotterdam fundamentals typically lead much of the Northwest European bunker fuel market, this strength was partly shrouded by a weaker crude market. As a result, flat-prices across Europe remained largely stable throughout the day. The low sulfur fuel oil market in Rotterdam and Antwerp, and indeed across Europe, remained tight, with limited refinery production set against a back-drop of good demand during the end of the fourth quarter, limiting LSFO availability and widening the HSFO/LSFO spread. Demand Friday was poor, as many participants had suspected, with much of the spot trade for this period already booked in advance. With weak demand and a stable flat-price, little activity was reported during the day.

Rotterdam

Indications for delivered bunkers:

380cst : $ 641
(1.0 %) :$ 688
180cst: $ 663
(1.0 %):$ 699
MGO 0.1%S: $947