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Crude oil prices raised $1 to $113.01 a barrel on Friday as market sentiment improved, following the approval of Spanish austerity measures, and on heightened geopolitical tensions. By 0914 GMT, the front month contract was up $1.08 at $113.09 a barrel. U.S. crude futures were up 70 cents at $92.56 a barrel at the same time. Spain's crisis budget for 2013 based on spending cuts pleased markets, whilst comments from Israeli Prime Minister Benjamin Netanyahu about Iran's nuclear programme are also said to be supporting oil.

After having reacted controversially to the DOE's oil inventories data on Wednesday afternoon, oil futures traded soft on Thursday morning but already slightly tested their upward potential. The slightly stronger dollar, resp. euro did not lead to expect an upward movement but in the early afternoon, oil futures nevertheless breached their resistance lines. Netanyahu's claim for a "red line” for the Iran at the UN General Assembly has bolstered quotations, along with the repercussions of Wednesday's bullish US oil inventories data. Having fallen to their lowest level since October 2008, above all low gasoline stocks had given oil futures a fillip. Thursday's economic indicators came out mixed, with a lower number of people filing for unemployment assistance at least slightly supporting oil futures. When resistance lines were breached, the stochastic indicator at the WTI charts has given an additional buying signal. Given the technical cues, quotations at ICE and NYMEX remained steady until the evening, settling near their highs.

OPEC: While in 2008 the collaboration between the OPEC and Russia did not prove to be fruitful, both parties have resumed talks regarding a possible cooperation. Russia's energy minister Alexander Novak and the secretary general of the cartel, Abdalla Salem el-Badri, have thus recently met in Vienna. In the statements following the talks, both stressed the necessity of stable and predictable markets - for the oil industry as well as for the global economy. The cooperation is said to focus on the creation of a conjoint working group to exchange information and analyse the oil market.

ICE Gasoil contract for October delivery settled at 981.00 dollars on Thursday. This was 18.75 dollars above Wednesday's settlement. With some 52,300 contracts the traded volume was on average.

At ICE charts, the lines of the stochastic indicator are already diverging. The indicator can thus be seen as slightly bullish again. At the WTI chart, the stochastic lines crossed in the oversold zone yesterday afternoon, giving a buying signal. The mere technical situation is thus bullish this morning, the more so as resistance lines have been breached.

U.S.

Nymex access bullish : Oil futures have consolidated on a high level in early Asian trading and on Globex electronic trading platform this morning. During yesterday's rise oil futures have breached several resistance lines. This morning, they have been able to stick to their gains. Market players look ahead to the performance of stock and forex markets today, as well as a string of economic indicators.

Houston (ex-wharf indications 27-9)

380cst $642
180cst $697
MGO $1050

New Orleans (ex-wharf indications 27-9)

380cst $651
180cst $707
MGO $1060

Singapore (correct as per 14:30 hrs LT-delivered indications)

Crude is improving with WTI +$2.05. Singapore paper is rising with +$13.05 for 180cst and +$13.25 for 380cst for Oct, and for Nov 180 cst +$13.05 and 380cst +$13.25 with MGO contracts Oct +$2.40 and Nov +$2.37. The cargo market is bearish with 180cst -$2.97, 380cst -$2.87 and MGO +$0.21.

The Singapore fuel oil markets slipped app. $3.0 during the morning window yesterday. The latest Singapore heavy residual inventory saw a draw of -1.45 mbbl to 18.53 mbbl. The delivered bunker premiums remained around $7.5 above cargo prices. Bunker fuel oil swaps posted app.$10/mt gains along the curve for the Singapore papers. This morning the market is trading higher.

High premiums for prompt deliveries.

380 cst $660
180 cst $670
MGO $960

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up, although Suppliers in Rotterdam continued to experience some difficulties to meet low sulfur fuel oil inquiries for prompt due to ongoing supply shortages in the area. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.