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Brent for October settlement rose 11 cents to $115.37 a barrel on the ICE Futures Europe exchange at 11:09 a.m. London time. The volume of all futures traded was about 41 percent below the 100-day average. The European benchmark crude was at a premium of $6.77 to WTI, compared with $6.89 yesterday. WTI for October delivery was at $108.61 a barrel in electronic trading on the NY Mercantile Exchange, up 24 cents. The contract yesterday climbed 1.1 percent to $108.37, the biggest gain since Aug. 27. Prices are up 0.9 percent this week for a second weekly advance.

After having remained rangebound in Asia and in early European trading on Thursday morning, oil futures surpassed their first resistance lines in the course of the morning, bolstered by the stronger euro and a renewed increase in the geopolitical risk premium. Expectations of a draw in US crude oil stockpiles - the API's data came in bullish on Wednesday night - prompted investors to raise their long positions. The rise in oil futures was capped near the second and the third resistances, however. Positive economic data out of the USA, which pointed to a sustainable recovery of the economy, pushed the dollar to new highs in the first hours of US-trading as they might indeed prompt the Fed to scale back its expansive measures. The steadier dollar in turn weighed on oil prices and so futures edged lower ahead of the release of the DOE's report on oil inventories. Still, strong supports at 114.40 dollars (Brent), at 955.25 dollars (G.Oil) and at 107.25 dollars (WTI) kept the decline in check and with the DOE's data, which were rather bullish at a first glance, oil futures pulled back from their lows again. While crude oil futures were able to hold their high levels, product futures (particularly gasoline) shed some of their gains later in the evening. In all, oil futures settled near the levels they had at the open of the session.

ICE Gasoil contract for September delivery settled at 963.75 USD on Thursday. This was 3.00 USD above Wednesday's settlement. With some 31,300 deals the traded volume was above average.

As expected, the technical constellation had but little impact on oil futures yesterday, the more so as there were no significant changes. The signals coming from the indicators are still not homogeneous. At the Brent and the WTI chart the stochastic indicator remains slightly bullish and at the Gasoil chart its lines have meanwhile met. However, the indicator will only give a bullish signal when these lines have crossed. Therefore we still assess the technical situation as neutral this morning, above all because investors' focus will stay on market fundamentals.

U.S.

Nymex neutral: After having declined in late US trade and in Asia, oil futures have edged higher again this morning. Nevertheless, ahead of the release of official US labor market data, the move at oil markets remains subdued. The traded volume at NYMEX is slightly below average for this time of day. Market players are now eying European markets, new signals from forex trading as well as today’s economic indicators, particularly those out of Germany and labor market data out of the USA . They will also keep an eye on developments in the Middle East.

Survey: crude oil -2,0, distillates +1,0, gasoil -0,4 vs million barrels previous week.
API: crude oil -4,2, distillates -0,1, gasoil -0,4 vs million barrels previous week.
DOE: crude oil -1,8, distillates +0,5, gasoil -1,8 vs million barrels previous week.

Houston (ex-wharf indications 05-09)
380cst $626
180cst $698
MGO $1030

New Orleans (ex-wharf indications 05-09)
380cst $628
180cst $679
MGO $1032

Singapore

Crude is neutral with WTI +$0.90. Singapore paper is falling with -$2.85 for 180cst and -$1.95 for 380cst for Sep, and for Oct 180 cst -$2.10 and 380cst -$2.00 with MGO contracts Sep -$0.05 and Oct +$0.05. The cargo market is bearish with 180cst -$2.08, 380cst -$2.08 and MGO -$0.46.

The Singapore fuel oil markets fell app. $2.0/mt during the morning Platts window yesterday. The Asian Fuel Oil cracks continued to weaken as fundamentals were soft. The delivered bunker premiums were higher at around +$3.0 above cargo prices yesterday as the softer prices attracted more buying. This morning markets are trading slightly lower.

380cst $604
180cst $613
MGO $940

Fujairah (delivered indications 05-09)

380cst $606
180cst $668
MGO $1005

ARA (Amsterdam - Rotterdam - Antwerp)

In September (starting week 4) ESSO Antwerp will start working on maintenance of their refinery. Because of this, local Antwerp suppliers will need to buy more product in Rotterdam, therefor long waitinglines at Rotterdam refineries and storage are to be expected, with premiums on price as a result.

Indications for delivered bunkers:
380cst : $597
(1.0 %) :$623
180cst: $627
(1.0 %):$ 653
MGO 0.1%S: $ 933