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Oil futures at ICE and NYMEX gained some ground this morning. Brent and WTI hit their first resistance in early trading, supported by a strong euro and the prospect of declining U.S. oil inventories. After the euro did not succeed in breaching its first resistance this morning, it slightly retreated and also caused oil futures to ease from their highs. But the oil market received new bulllish signals by gains at the German stock market, which also made the euro bounce back from its first support. In addition to this, Spain was able to emit short-term bonds at a lower yield during an auction today. This may also have had a positive effect on market sentiment. In the course of the afternoon, U.S. economic data, which might exert some influence on the oil market, are to be released.

Oil prices consolidated in a tight range Monday morning before breaching first supports with a low trade volume at ICE and NYMEX towards noon. But since market participants are still cautious in face of the impending fiscal cliff in the USA, the breach was not sustainable. In addition, the strong second support for WTI at 86.55 dollars limited downside. During NYYMEX floor trading, WTI crude rose more sharply than oil futures at ICE. The disappointing NY Empire State Index only had a short bearish effect. The U.S. crude then breached its first resistance, triggering stop-loss buying orders and giving rise to more upside. This was seen as a predominantly technical reaction in view of the the changing front month on Wednesday. When WTI consolidated sideways above its resistances during late trading, ICE futures lost ground but could recover in Asian trading. The euro vs. the dollar traded sideways in a tight range Yesterday and did not have any influence on prices at the oil market . ICE Gasoil contract for January delivery settled at 922.25 dollars on Monday. This was 0.50 dollars below Friday's settlement. With some 39,000 deals the traded volume was below average.

Little has changed in the technical view this morning. The stochastic oscillator remains slightly bullish at ICE and NYMEX but is slowly moving into the oversold range and indicator lines of G.Oil are gradually converging. The RSI is above the 30%-line for all contracts and does not give off any guiding signals to the market at the moment. Due to the decreasing trading interest before Christmas, analysts expect a phase of consolidating prices with a still slightly bullish tendency in face of the economic indicators to be released this week.

U.S.

Nymex Access neutral: Oil prices showed a strong tendency in Asian trading, supported by friendly Asian stocks and a strong euro as well as the forecast of declining U.S. oil inventories. However, futures are retreating in Globex trade this morning due to a slightly falling common currency. Trade interest at NYMEX is far below average at the front month for this time of day. Since the contract is expiring tomorrow, traders are already changing the front month to February. Traders are waiting for the European markets to open and for some U.S. economic data to be released today as well as for news regarding U.S. budget talks. The euro has decoupled a bit from the developments at the oil market.

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

Crude bounced up with WTI +$0.85 Singapore paper is turning, losing with -$0.50 for 180cst and -$0.75 for 380cst for Jan, and for Feb,180 cst -$0.50 and 380cst -$0.75. With MGO contracts Jan and Feb unchanged. The cargo market is gaining still with 180 cst +$3.19 380cst +$2.30 and MGO +$0.66.

High premiums for prompt deliveries.
380 cst $603
180 cst $610
MDO $920

ARA (Amsterdam - Rotterdam - Antwerp)

LSFO loadings are taken up to 4 days in Antwerp. HSFO there are no spot-avails. Beside the existing contracts of the suppliers, there are no load possibilities in Antwerp or Flushing. Both influences the Rotterdam hub with regards to the loading capacity. A lot of waitingtime is reported in some of the refineries or storages. Those where waitingtime is taken to the minimum, high premiums are noted. Therefore, for prompt enquiries, a bigger premium is to be expected.

Indications for delivered bunkers:
380cst : $ 580
(1.0 %) :$ 610
180cst: $ 617
(1.0 %):$ 648
MGO 0.1%S: $ 920