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Oil dipped towards $110 a barrel on Friday as the ceasefire in the Gaza Strip held, easing supply concerns, but better-than-expected German business sentiment data failed to ease worries about demand in the eurozone economies. Brent crude futures were down 22 cents at $110.33 a barrel at 1211 GMT. U.S. crude was down 27 cents against Wednesday's settlement to $87.11.

Oil futures lost ground in electronic morning trading after a cease-fire in the Gaza strip between Israel and the Hamas was agreed. A better-than-expected Chinese manufacturing PMI that showed expansion for the first time in 13 months as well as Wednesday's bullish DoE data limited the losses. Positive equity markets and the rising euro vs dollar lent additional support but the overall sentiment remained bearish, market participants taking some profit as Middle East supply worries were dispelled when it became clear that the truce in Gaza would hold. The traded volume was well below average due to the absence of many traders for the U.S. holiday.

ICE Gasoil contract for December delivery settled at 947,50 dollars on Thursday. This was 4.00 dollars below Wednesday's settlement. With some 18,700 deals the traded volume was far below average.

One day after Shell had lifted the force majeure on its Bonny Light deliveries, Exxon said yesterday it had declared force majeure on exports of Qua Iboe crude from Nigeria due to an oil spill beginning of November. Exxon's Nigerian subsidiary didn't say how much oil had been lost and when production would be back to normal.

The Stochastic oscillator at the G.Oil chart has meanwhile also giving a selling signal . So far no important support lines were breached and due to the absence of many traders technical analysts see limited downside to oil. Still the technical constellation stays somewhat bearish and crude could likely fall as low as 108,90 dollars (Brent) and 85,80 dollars (WTI).

U.S.

Nymex Access neutral: Oil prices are trading rather volatile in East-Asia and on Globex electronic trading platform this morning in a quiet market because of the U.S. holiday. The traded volume at the NYMEX is well below average. Market players eye the performance of stock and forex marekts today, a couple of German indicators and news on the truce between Israel and the Hamas.

Houston (ex-wharf indications 21-11)

380cst $610
180cst $678
MGO $1035

New Orleans (ex-wharf indications 21-11)

380cst $617
180cst $650
MGO $1047

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

The Singapore markets rose around $4.0 during the morning Platts window yesterday on stronger crude prices. The contango continues to be steep reflecting the current soft demand with ample supply. The delivered bunker premiums crashed to around $1.50-2.0 above cargo prices. Bunker fuel oil swaps remained largely unchanged along the curve for Singapore papers- assessed up app.$0.5/mt. This morning the markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $613
180 cst $623
MDO $930

ARA (Amsterdam - Rotterdam - Antwerp)

Operational activity in the main ports remained subdued and continuously reported problems with hsfo and lsfo deliveries due to operational delays at loading installations. In Antwerp and Flushing shortage of HSFO is reported.

Indications for delivered bunkers:

380cst : $ 593
(1.0 %) :$ 627
180cst: $ 623
(1.0 %):$ 657
MGO 0.1%S: $ 945