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While Brent and NYMEX are retreating, hitting first support lines in the process, weighed down by a rising dollar, equities' losses and technical profit taking after Friday's strong gains distillate futures in London and New York are lifted by the onset of winter in Europe. There is no relevant news in the markets. Traders expect more direction after the opening of NYMEX session.

After a consolidation in thin trading volume in the morning oil prices rose on the back of rising equity markets and a weaker dollar, making oil more attractive for investors. The gasoil in London breached its first resistance lines at this time of the day. After figures released in the afternoon showed that U.S. unemployment rate dropped against all expectations and that the private sector had created more jobs than expected last month, prices jumped during NYMEX session, the Brent and the gasoil breaching important resistance lines at 113.70 and 960.00 dollars, triggering a string of technical buying orders. Only the WTI crude failed to breach its first resistance at 98.00 dollars, widening the spread between the two crudes to over 17 dollars.

ICE Gasoil contract for February delivery settled at 959.50 dollars on Friday. This was 11.75 dollars above Thursday's settlement. With some 48,400 contracts the traded volume was below average.

OPEC: Iraq does not intend to replace Iranian crude oil following the imposition of foreign sanctions. None of the European countries who used to buy Iranian oil has asked Iraq for replacement, so an official who also said that Iraq has no spare oil to replace the Iranian crude and that all volumes of Iranian crude are sold through term contracts for the current year. Figures show that production from OPEC's 12 members was up 75,000 barrels a day to 31.165 million barrels a day of oil in January (incl. Iraq). The output level remained about 1 million more than the 30 million barrels a day OPEC agreed to produce at a meeting last December and increased despite lower demand in the first half of this year. Production increases are seen in Libya, Iraq, Kuwait, Angola and Qatar

The Stochastic oscillator is still bullish at the ICE and NYMEX charts, even though at the overbought level, as is the RSI indicator, with the exception of the WTI crude. Therefore technical analysts reckon that the WTI's 98.00 dollar resistance will be crucial for oil prices today. Should the resistance be breached, technically driven buying orders will support oil prices. Still, the influence of the U.S. dollar will remain strong this week.

U.S.

Nymex acces losing. Oil futures are lower in Asian trading hours and on Globex electronic trading platform this morning as market participants book profits after recent gains with persistent euro-zone debt concerns and bearish U.S. crude inventories keeping a lid on prices of both U.S. and European benchmarks. The traded volume is about on average. As there are no important indicators on the agenda today, traders will eye the dollar and equity markets for direction.

Houston (ex-wharf indications 3-2)

380cst $687
180cst $723
MGO $1033

Very tight avails for 180 cst

New Orleans (ex-wharf indications 3-2)

380cst $689
180cst $725
MGO $1036

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

Crude is bouncing up slightly with WTI +$0.79 Singapore paper tracking crude with +$15.65 for 180cst and +$15.00 for 380cst for Feb, and for Mar 180 cst +$16.20 and 380cst +$15.65 with MGO Feb contracts at +$2.30 and for Mar +$2.29. The cargo market is ignoring the latest turn, losing with 180cst -$12.96, 380cst -$11.98 and MGO -$0.33.

The Singapore fuel oil markets were down more than -$12.0 during the morning last Friday. The heavy selling in the Fuel Oil market softened the Asian Fuel Oil crack. The delivered bunker premiums inched up around $26.5 above cargo prices. Bunker fuel oil swaps gained a few dollars at the front and up to $5.50/mt at the backend of the forward curve. This morning markets are trading significantly higher.

High premiums for prompt deliveries.

380 cst $729
180 cst $740
MGO $985

Fujairah (delivered indications 6-2)

380cst $720
180cst $753
MGO $1045

ARA (Amsterdam - Rotterdam - Antwerp)

In Northwest Europe bunker fuel prices were marginally stronger at the end of the week with rising crude prices, due to improved US economic data that led to some renewed buying interest in the major ports. High Chinese refinery demand is supporting the arbitrage to Singapore.

Rotterdam

Indications for delivered bunkers:

380cst : $ 673
(1.0 %) :$ 693
180cst: $ 686
(1.0 %):$ 708
MGO 0.1%S: $963