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Against the backdrop of some technical buying after Friday's losses, oil prices have initially edged higher this morning. By noon, they had eased somewhat, only to turn slightly bullish again. Investors seem to focus on the development in Europe and the slightly bearish technical constellation. The WTI crude is testing its resistance at 100.00 dollars. The situation in Nigeria has slightly eased over the weekend. After the country's president announced a reduction of gasoline prices, strikes of oil workers may possibly have been averted. Due to the holiday in the USA today, market is still lacking a clear direction.

Oil futures traded higher on Globex electronic trading platform Friday in a technical upward correction after Thursday's late losses and supported by the rising euro. When investors took the chance of fresh intraday highs to take some profit oil prices shed earlier gains at midday. News that the US rating agency Standard & Poor's prepared to downgrade the credit rating of several European countries added new fears about Europe's economy and took the wind out of the oil markets where prices fell in tandem with the euro and European equities. Only geopolitical concerns at Iran and Nigeria, the only real bullish factors for the time being, limited oil's losses and the contracts at ICE and NYMEX recovered in after-hour trading while the euro fell to a fresh 16-month low.

ICE Gasoil contract for February delivery settled at 952.50 dollars on Friday. This was 20.00 dollars below Thursday's settlement. With some 86,400 contracts the traded volume was well above average.

The Stochastic oscillator has not yet left the bearish zone at ICE and NYMEX charts but is at the oversold level. Technical analysts are rather neutral today and see oil prices in consolidation above Friday's lows as volume is expected to stay thin due to today's holiday in the USA. The WTI crude is seen oscillating around the crucial mark of 100.00 dollars. Should the resistance prove strong today, prices might follow the bearish tendency but above this level technically driven buying orders are expected.

U.S.

Nymex acces gaining. Oil futures are edging modestly higher in Asian trading hours and on Globex electronic trading platform this morning as the forex market provides little momentum and Asian equity markets are holding their breath. The traded volume is clearly below average. In the absence of any economic indicators and with NYMEX floor trade being closed today, market participants will eye the situation in Nigeria and Iran and the development in Europe today. Should the euro keep losing ground after Friday's downgrading oil might trade lower as well.

Houston (ex-wharf indications 13-1)

380cst $662
180cst $698
MGO $1010

Very tight avails for 180 cst

New Orleans (ex-wharf indications 13-1)

380cst $665
180cst $701
MGO $1013

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

Crude is losing still, but easing with WTI -$0.36. Singapore paper is cautiously losing with -$2.15 for 180cst and -$2.25 for 380cst for Feb, and for Mar 180 cst -$2.10 and 380cst -$2.25 with MGO Feb contracts unchanged and for Mar +$0.01. The cargo market is in line with crude and paper, losing slightly with 180cst -$2.81, 380cst -$2.69 and MGO -$0.81.

The Singapore fuel oil markets dipped slightly by -$2.5 during the morning last Friday on renewed crude strength. Market remains tight in the short term and on specifications bunker grade products may take some time to be available. The delivered bunker premiums were assessed around $27.0 above cargo prices. Bunker fuel oil swaps posted $13-15.50/mt losses along the curve both for Rotterdam and Singapore papers. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $725
180 cst $735
MGO $960

Fujairah (delivered indications 16-1)

380cst $727
180cst $751
MGO $1050

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam bunker prices fell Friday, alongside those of all major Northwest European ports, with traders attributing the move to crude oil’s descent. Rotterdam high sulfur 380CST bunker fuel was assessed at $674.50/mt, down $10.00/mt day-on-day. However fuel-oil specific fundamentals were largely unchanged, with high premiums reported due to tightness of product. The Antwerp bunker market also stayed tight despite the outright price drop, specifically for prompt supplies.

Rotterdam

Indications for delivered bunkers:

380cst : $ 675
(1.0 %) :$ 688
180cst: $ 689
(1.0 %):$ 717
MGO 0.1%S: $958