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Crude oil traded lower in London Monday morning, as the market's attention switched back to demand indicators to be taken from macroeconomic news, but participants warned that the sort of volatility seen last week may yet return as Middle East geopolitics remains a factor in moving oil prices. At 1042 GMT, the front-month January Brent contract on London's ICE futures exchange is down 44 cents at $110.94 a barrel. The front-month January light, sweet crude contract on the New York Mercantile Exchange is trading 52 cents lower at $87.76 a barrel.

After a very thin trade on Thanksgiving (Thursday), oil futures hardly changed on Friday morning, with investors waiting for new clues from US markets. Some traders were working fewer hours. As the ceasefire between Hamas and Israel lasted, other factors returned into focus. US stock markets kept track of the gains marked by European equities, that had already climbed on Thursday against the backdrop of a better-than-forecast Chinese purchasing manager index and were also pushed higher on Friday by the Ifo's business climate index. As traders at ICE and NYMEX regard stockmarkets as indicators for economic growth, their gains have also sent oil prices higher. The softer dollar also favored a rise of oil futures, as they became more attractive for traders outside the USA. Moreover, an incident near the border between Israel and the Gaza-Strip, that had killed a Palestinian, caused some nervousness. Hamas accused the Israeli army of not having stuck to the ceasefire. In all, however, the truce has not been breached. Few breaking news, steady equities, a weaker dollar and a low volume made created an environment in which oil futures were almost predestined to rise. After several resistance lines had been breached and technical buying orders triggered, oil futures in London and New York settled with considerable gains.

ICE Gasoil contract for December delivery settled at 951.75 dollars on Friday. This was 4.25 dollars above Thursday's settlement. With some 24,300 deals the traded volume was far below average.

Neither the stochastic indicator, nor the RSI are giving any new signals this morning, whereas the indicators point to a slightly overbought situation at ICE, see also technical analysis. This favors some profit taking but without any new signals, there might be none. Some supports that have proved stable on the medium term have particularly developed for the Brent. These indicate another rise and limit profit taking. As upward slack is also limited by technical resistances, technical analysts expect prices to consolidate sideways.

U.S.

Nymex Access neutral: Oil prices have remained steady in East-Asia and on Globex electronic trading platform this morning. First profit taking at Asian stock markets (Nikkei 225) and from the euro have only had a brief impact on oil futures. The traded volume is on average. Market players closely watch the performance of stock and forex markets today and a couple of economic indicators.

Houston (ex-wharf indications 26-11)
380cst $619
180cst $675
MGO $1020

New Orleans (ex-wharf indications 26-11)

380cst $616
180cst $647
MGO $1032

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 $616
180 cst $627
MDO $939

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 : $ 595
(1.0 %) :$ 627
180cst: $ 625
(1.0 %):$ 657
MGO 0.1%S: $ 950