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Crude oil futures eased down in quiet pre-holiday trade on Monday, as appetite for growth-linked assets weakened amid reduced hopes for a U.S. budget deal before the year-end deadline. Trading was expected to remain subdued, with year-end positioning driving flows and as holidays in many countries limit activity. On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD88.55 a barrel during European morning trade, down 0.15% on the day. New York-traded oil prices were stuck in a tight trading range between USD88.44 a barrel, the daily low and a session high of USD88.83 a barrel.

Cancelling "plan B" on Thursday weighed on market sentiment on Friday and futures at ICE and NYMEX tested their first supports already in the morning. Only in the early afternoon were they breached sustainably, triggering some stop-loss selling orders. After the upward tendency of the past days, traders were busy cutting their profits and remaining risk positions before trade would become thinner and more volatile during Christmas. The euro and stock market also stayed in the red, favouring upward movement at the oil market. The U.S. economic data released in the afternoon were rather mixed but did not have any impact on prices since the topicality of the fiscal cliff and U.S. budget talks outweigh all other news at the financial markets. Only in the support range of 930.00 dollars G.Oil, 108.75 dollars Brent and 88.00 dollars WTI did sellings decrease, technically limiting downward correction. In the course of the evening, prices shortly traded up after bouncing off these marks but closed with a small minus in the end.

ICE Gasoil contract for January delivery settled at 932.50 dollars on Friday. This was 8.75 dollars below Thursday's settlement. With some 31,300 deals the traded volume was below average.

The stochastic oscillator at ICE and NYMEX is clearly bearish and also the RSI for Brent and G.Oil gives off a selling signal by breaching the 70%-line. If the indicator also crossed the 70%-line for WTI, additional selling signals would be triggered and profit-taking be favoured due to the overbought situation at the market. Since the technical analysis is generally bearish, prices in London and New York may limit downward potential. Due to the expected low trading volume, the market could, however, be very volatile.

U.S.

Nymex Access bearish: Oil futures at ICE and NYMEX started softer on Christmas Eve and thus continue Friday's tendency. The imminent fiscal cliff is still weighing on prices and may set against upward movement today. Trading interest is far below average because most market participants are already on Christmas vacation. Since no economic data will be released today, there will be hardly any new signals.

Houston (ex-wharf indications 21-12)
380cst $612
180cst $665
MGO $1007

New Orleans (ex-wharf indications 21-12)
380cst $629
180cst $666
MGO $1002

Singapore (correct as of 1430hrs LT - delivered indications)
High premiums for prompt deliveries.
380 cst $603
180 cst $613
MDO $930

Fujairah (delivered indications 24-12)

380cst $608
180cst $640
MGO $1025

ARA (Amsterdam - Rotterdam - Antwerp)

Most the ports in NWE experienced difficulties with prompt deliveries due to existing or expected barge tightness. Some bunker suppliers noted that loading terminals were expected to operate for only few days due to holidays and had restricted fuel volumes on the loading side as well, sources said. Rotterdam continued to experience difficulties with low sulfur fuel oil availabilities.

Indications for delivered bunkers:
380cst : $ 578
(1.0 %) :$ 600
180cst: $ 608
(1.0 %):$ 630
MGO 0.1%S: $ 928