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Since supports at 922.00 dollars for the G.Oil and at 90.70 dollars for the WTI proved strong in the morning, oil futures at ICE and NYMEX have kept trading in a narrow range. Currently the Brent is testing its support at 108.30 dollars. As there is no fundamental news expected regarding the euro zone and few economic indicators there are no decisive cues for oil markets. Investors will also focus Bernanke's speech, scheduled this afternoon. It is however uncertain, whether he will comment on measures of monetary policy.

Oil futures have already edged higher on Friday morning, as investors had shrugged off the disappointment regarding the decisions the Fed and the ECB took on Wednesday and Friday. The fundamental situation that has been slightly bullish has prompted investors to take some profits whereas key resistance lines like the one at 89.65 dollars for the WTI remained strong until the afternoon. US labor market statistics as well as the US ISM service PMI, released later that day, have provided some positive cues then and so futures have sustainably breached resistances that proved strong until then. Oil prices have also been buoyed by the technical situation at that time, as the stochastic indicator gave more buying signals. Forex trade, particularly the weaker dollar, accelerated the price rally. Given the positive economic data, investors preference for riskier assets increased and so the dollar declined even more. While the Brent only climbed some 3.0% at its highest, the WTI crude surged nearly 4.7% compared to its level at the opening on Friday. According to analysts, this is due to the US oil inventories data, that had been published on Wednesday, and to the wide spread between the Brent and the WTI. While this spread still amounted to some 18 dollars in the morning, it narrowed to 17.50 dollars in the course of the day. The pressure to buy remained until late in the evening and so oil futures settled near their intraday highs despite some profit taking.

ICE Gasoil contract for August delivery settled at 923.00 dollars on Friday. This was 15.00 dollars above Thursday's settlement. With some 31,200 contracts the traded volume was below average.

OPEC: Crude oil output by Opec member-states has dropped in July, as US and European sanctions have cut supply from Iran and due to reduced shipments from Angola, Saudi Arabia and Libya. Supply from OPEc has averaged 31.18 million barrels per day, down from 31.63 million bpd in June. The biggest drop in supplies this month came from Iran, whose crude is subject to a European Union embargo that started on July 1 barring EU insurance firms from covering Iran's exports.

The stochastic indicator gave a clear buying signal on Friday and is still bullish this morning. The RSI is still in the overbought zone - at least at ICE charts - scratching at the 70%-line. After a rise as sharp as the one on Friday, profit taking is not unusual in the following session. That is why technical analysts assess the situation as only slightly bullish despite of Friday's buying signals. If the RSI breaches the 70%-line at ICE charts, a counter reaction might be triggered that would not necessarily change the technical constellation. According to analysts, there is some leeway down.

U.S.

Nymex access losing: Oil futures traded slightly below Friday's highs in East-Asia and on Globex electronic trading platform this morning but remained in a narrow range. Only NYMEX Gasoline has seen some more profit taking. The traded volume is far above average. Market participants now look ahead to the performance of equities and forex markets today as well as some economic indicators.

Houston (ex-wharf indications 3-8)

380cst $621
180cst $655
MGO $965

New Orleans (ex-wharf indications 3-8)

380cst $623
180cst $658
MGO $970

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

Crude is surging with WTI +$2.90. Singapore paper is reacting, but is less bullish with +$9.30 for 180cst and +$9.30 for 380cst for Aug, and for Sep 180 cst +$9.75 and 380cst +$9.45 with MGO contracts Aug +$2.45 and Sep +$2.34. The cargo market is cautious as well with 180cst +$0.70, 380cst -$0.01 and MGO +$0.51.

The Singapore fuel oil market prices were slightly up between flat to +$0.75 during the morning Platts window last Friday. The latest Singapore heavy residual inventory reported a build of +2.20 mbbl to 19.81 mbbl. The delivered bunker premiums were seen around $8.0 above cargo prices. This morning markets are trading slightly down.

High premiums for prompt deliveries.

380 cst $635
180 cst $650
MGO $920

Fujairah (delivered indications 6-8)

380cst $650
180cst $670
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Last Friday, all prices in the ARA surged on bullish US data, keeping demand at low levels. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 622
(1.0 %) :$ 670
180cst: $ 645
(1.0 %):$ 706
MGO 0.1%S: $915