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Oil prices have initially climbed during morning trade, supported by technical buying and euphoria in Asian trade. By middaythey have erased gains, however, keeping track of foreign exchange and European equities. At ICE first supports have been breached. As talks regarding the EU's oil embargo against the Iranwill only take place next week, investors avoid building larger long positions. Despite of this morning's positive economic data from the euro zone, the common currency was not able to gain more ground against the dollar. Experts do not expect any larger movements today, if there is no decisive news, for example regarding Nigeria. US economic data - to be published later in the afternoon - are not expected to have any major impact on oil prices.

Yesterday, Oil futures had been trading higher on Globex electronic trading platform Thursday, driven higher by word of a possible shutdown of Nigerian oil exports and a stronger euro, even as the market looked past bearish new economic data and weak U.S. fuel demand fundamentals. With additionnal support from soaring European equities, ICE brent breached its 113.65 dollar resistance, triggering some technical buying. When WTI crude in turn failed to breach 103.20 dollars, market participants started to take some profit. A steep selloff began with less than an hour to go in NYMEX session, WTI crude losing nearly 2% in the process after reports emerged saying the European Union's possible embargo of Iranian oil imports would likely be delayed up to six months. The oil embargo having been the only fundamental keeping prices on their high level, the selloff was fast and hefty. Once the Iranian piece is taken out of the puzzle, markets are left with poor economic data and poor U.S.fundamental crude data. WTI fell through the technical triangle, triggering technical selling orders that accelerated oil's slide.

ICE Gasoil contract for February delivery settled at 972.50 dollars on Thursday. This was 1.25 dollars above Wednesday's settlement. With some 89,600 contracts the traded volume was well below average.

The Stochastic oscillator remains in bearish territory at ICE and NYMEX charts. Still, the technical constellation has no significant influence on oil prices for the time being given the fundamental news that dominate the markets (possible delay of EU oil embargo and strikes in Nigeria), so technical analysts. After Thursday's hefty selloff a modest technical upward correction is likely, but still market participants will eye any news from the fundamental side.

U.S.

Nymex acces gaining. Oil futures are rising in Asian trading hours and on Globex electronic trading platform this morning on technical buying after Thursday's selloff and supported by gains in Asian equities and a stronger euro. The traded volume is above average. Market participants will eye the situation in Nigeriaand Iranand the course of the euro today. A few economic indicators are also on the agenda.

Houston (ex-wharf indications 11-1)

380cst $676
180cst $712
MGO $1012

Very tight avails for 180 cst

New Orleans (ex-wharf indications 11-1)

380cst $678
180cst $714
MGO $1015

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

Crude is dropping with WTI -$1.94. Singapore paper is cautiously losing with -$2.50 for 180cst and -$2.80 for 380cst for Jan, and for Feb 180 cst -$2.50 and 380cst -$2.75 with MGO Jan contracts at -$0.60 and for Feb -$0.57. The cargo market is starting to react to the bearish sentiment with 180cst -$1.48, 380cst -$3.74 and MGO -$0.82.

The Singapore fuel oil markets slipped Yesterday with the Singapore heavy residual inventory reported a small build of +0.09 mbbl to 16.31 mbbl. It is expected to see more incoming in the latter part of the month around 4.0 million mt. The delivered bunker premium was around $22.0 - 24.0/mt above cargo prices. Bunker fuel papers gained approx. $6/mt along the curve both in Singapore and Rotterdam. Prices were slightly stronger at the back flattening the curve a little. However, the forward curve maintains an attractive backwardation as 2013 papers are traded at $80/mt discount against February prices in Singapore. The 2013 Rotterdam Barges are discounted as well but by slightly less that Asian papers due to East/West pricing. Both markets are trading down this morning.

High premiums for prompt deliveries.

380 cst $725
180 cst $735
MGO $960

Fujairah (delivered indications 13-1)

380cst $729
180cst $755
MGO $1055

ARA (Amsterdam - Rotterdam - Antwerp)

The strength of the Rotterdam bunker fuel market was tempered somewhat Thursday, despite Brent crude oil trading up $1.00/barrel day-on-day. High sulfur 380CST delivered bunker fuel was assessed at $684.50/mt, down $2.00/mt from Wednesday. However, trading sources said that a lack of loadable fuel continued to keep Rotterdam prices high, with increased arbitrage to Asia since the start of the year tightening the market. Antwerp prices stayed supported Thursday, with traders citing similar supply-side constraints.

Rotterdam

Indications for delivered bunkers:

380cst : $ 680
(1.0 %) :$ 690
180cst: $ 695
(1.0 %):$ 719
MGO 0.1%S: $965