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Oil futures have traded within a narrow range, and tested their first support lines by mid-morning. The ICE G.Oil's second support at 1,002.75 dollars remained strong, however, and so oil futures at ICE have been able to erase losses, while the WTI Crude has not been able to exceed its first support, yet. The weak performance of European stock exchanges and the still strong dollar weighed on prices this morning. Furthermore, unconvincing figures regarding the euro zone's economy have lead investors to take some profits. The weaker-than-expected service PMI has stoked concerns about a retreating oil demand. In the beginning of the afternoon all prices turned bullish again.

Despite positive sentiment at European equity markets, oil prices stayed in a narrow lateral range for most of the day, lingering in a quiet and rather uneventful trade as technical analysts had expected. Minor gains after the opening of NYMEX session were quickly erased. A converse purchasing managers index from China's manufacturing sector upset markets. While the HSBC's index was published with 49.6, signalling a contraction, official government data said the manufacturing PMI was at 51. Neither were several Euro zone and US indicators that were on the agenda yesterday able to inspire investors. The market began then rising sharply just before the close and continued in after-hours trading following a report of a pipeline explosion in Saudi Arabia. Before the report rattled markets, a strong rise in Brent pulled the WTI crude higher despite weak supply-and-demand fundamentals in the U.S., with some noting the price was out of sync with the economic reality on the ground in the U.S. and Europe. Though there was little news of new developments with Iran, market participants said the escalating standoff between it and Western nations over its nuclear program was increasing concerns that oil supplies would be impacted in some way. Despite the Saudi government denied the explosion, oil futures in London and New York rose to fresh highs.

ICE Gasoil contract for March delivery settled at at 1,010.50 dollars on Friday. This was 1.00 dollar above Thursday's settlement. With some 38,200 contracts the traded volume was far below average.

As the RSI, the stochastic indicator does not give any new impulsions to market participants and is therefore to be seen as neutral this morning. After irritations regarding reports on a pipeline blast in Saudi Arabia have eased, technical analysts do not expect any crucial impulsions for a specific trend. The focus is still on the development of the Iran conflict. Analysts thus expect prices to continue consolidating on a high level, whereas strong support lines will probably also buoy prices.

U.S.

Nymex acces gaining. Oil futures traded slightly higher in Asian trading hours and on Globex electronic trading platform this morning. Currently there are no decisive impulsions and the euro is trading sideways in a narrow range hardly yielding impact on oil prices. The traded volume is far above average. Investors today eye the developments at European stock markets, new impulsions from forex trade and today's economic indicators

Houston (ex-wharf indications 28-2)

380cst $722
180cst $763
MGO $1067

Very tight avails for 180 cst

New Orleans (ex-wharf indications 28-2)

380cst $724
180cst $766
MGO $1069

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

Crude is losing again with WTI -$1.41 Singapore paper is mirroring crude with -$6.30 for 180cst and -$5.25 for 380cst for Mar, and for Apr 180 cst -$6.65 and 380cst -$5.25 with MGO contracts Mar -$1.40 and Apr -$1.42. The cargo market is reacting to the bulllish end of the week, bouncing up with 180cst +$18.86, 380cst +$18.29 and MGO +$1.69.

The Singapore fuel oil markets spiked more than $18.0 during Friday morning. Market demand was soft on higher outright prices. The delivered bunker premiums slumped to around $3.25 above cargo prices. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $735
180 cst $745
MGO $1000

Fujairah (delivered indications 5-3)

380cst $752
180cst $773
MGO $1055

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

High sulfur prices gained ground on rising crude prices and tight supply, with the ARA markets tracking firming crude numbers. Rotterdam and Antwerp low sulfur bunker prices fell off slightly from the previous day’s surge, but supply remained restricted.

Rotterdam

Indications for delivered bunkers:

380cst : $ 710
(1.0 %) :$ 747
180cst: $ 732
(1.0 %):$ 775
MGO 0.1%S: $1017