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The price of crude edged up toward $91 a barrel on Friday, ahead of another effort in Washington to strike a budget deal before the year-end deadline. By early afternoon in Europe, benchmark crude for February delivery was up 6 cents to $90.93 a barrel in electronic trading on the New York Mercantile Exchange.

Oil futures returned from the holidays with a strong tendency. Firstly, Iran's military exercise in the strait of Hormuz as well as the positive housing market data out of the United States on Wednesday lifted prices. Yesterday, everyone completely focused on U.S. budget talks again during which there still has not been any considerable progress. Market participants do expect a deal even if it is just lifting the debt ceiling. Thus prices tested their resistances again and again, supported by a strong euro and a weak dollar, but could not breach them sustainably. While U.S. economic data did not have great impact on the market, statements made by Harry Reid, Senate Majority Leader, triggered porfit-taking with the euro and at the stock market, partly spreading to the oil market, which prevented upward breaks. The Senator said he expects that a deal would not be reached this year and the USA will indeed fall over the fiscal cliff. Consequently, later trading was somewhat unsettled and profit-taking was limited. In all, prices consolidated at a high level. Although trade volume has increased compared to Monday or Wednesday, it remains thin since many traders are still on Christmas vacation. The API data released last night were rather bearish but did not have a strong effect on prices at ICE and NYMEX in face of the threatening fiscal cliff.

ICE Gasoil contract for January delivery settled at 937.50 dollars on Thursday. This was 3.75 dollars below Wednesday's settlement. With some 28,600 deals the traded volume was below average.

The stochastic oscillator remains bullish and together with the RSI, indicates an increasingly overbought situation, which favours profit-taking. Selling signals, however, have not been triggered yet and would only be possible at the RSI if it falls below the 70%-line see also technical analysis. Alltogether, little has changed in the technical view since yesterday. The high price level could encourage first cautious profit-taking. But the technical constellation indicates that prices consolidate at a high level with a strong tendency.

U.S.

Nymex Access stable: Oil prices have hardly changed and stay at a high level near yesterday's highs. Trading interest at NYMEX is slightly below average for this time of day. Traders are waiting for the European market to open, for advances in U.S. budget talks, for economic data and oil inventories to be released today.

Houston (ex-wharf indications 27-12)
380cst $625
180cst $718
MGO $1022

New Orleans (ex-wharf indications 27-12)
380cst $636
180cst $673
MGO $1006
Singapore (correct as of 1430hrs LT - delivered indications)

WTI is neutral with +$0.02. Paper for Dec 180cst -$1.45 and for 380cst -$1.45 , Jan contracts were trading with 180cst -$1.20, 380st no changes. The cargo market went in upwards direction with 180cst +$8.88, 380cst +$8.98 and MGO +$1.33.

High premiums for prompt deliveries.
380 cst $613
180 cst $622
MDO $940

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 : $ 590
(1.0 %) :$ 618
180cst: $ 620
(1.0 %):$ 648
MGO 0.1%S: $ 935