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Brent crude advanced a second day ahead of talks between the U.S. and Russia to resolve the crisis in Syria, a conflict that has sparked concern Middle Eastern oil supplies may be disrupted. Futures rose as much as 0.7 percent as Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State John Kerry were due to meet in Geneva today to discuss a plan for Syria to surrender its chemical weapons. Prices jumped after the Israeli army reported that two shells fired from Syria hit the southern Golan. The International Energy Agency cut estimates for the amount of crude OPEC will need to provide next year as supplies from North America surge. Brent for October settlement gained as much as 83 cents to $112.33 a barrel on the London-based ICE Futures Europe exchange, and was at $111.97 as of 10:34 a.m. London time. The more actively-traded November contract was up 46 cents at $110.65. October futures will expire tomorrow. The front-month European benchmark crude was at a premium of $4.20 to West Texas Intermediate. The spread widened yesterday for the first time in five days to $3.94.

Late Wednesday morning, oil futures at ICE and NYMEX surged, quickly breaching several resistances. After the losses suffered the day before, some traders apparently seized the situation to take profits from speculative short positions. The upturn was then accelerated by news on a bomb attack against the Egyptian military on the Sinai Peninsula. As a result, Brent and WTI had already climbed up to their resistances at 112.55 USD and 108.00 USD, respectively, during morning trade. However, oil's rise was rather short-lived as prices were returning from their highs in the course of the afternoon. Market players were then waiting for the DoE's inventory data which eventually came out rather bearish. Still, oil markets reacted somewhat reserved to the data and could compensate the losses again in further trading. The Brent-WTI spread narrowed again in this phase since crude reserves in Cushing had dropped for the 10th consecutive time. In the end, oil futures were consolidating for the rest of Wednesday's session, not finding any clear direction anymore. In view of the price increase in the morning, they settled with small gains.

ICE Gasoil contract for September delivery settled at 943.50 USD on Wednesday. This was 4.75 USD above Tuesday's settlement. With some 29,800 deals the traded volume was below average.

The technical indicators are no longer bearish. The Stochastic's lines are already converging again at ICE charts but have not crossed yet. Only when the black line is breaching the red one bottom-up would a buying signal be triggered. The RSI has climbed back above the 30%-line at the Brent chart and is thus bullish now, see also technical analysis. Even if the RSI has turned bullish for Brent, we still consider the technical constellation as neutral this morning as signals for G.Oil are still lacking.

U.S.

Nymex bullish: Oil markets have been consolidating near yesterday's closing level in Asian trading this morning. The traded volume at NYMEX is slightly below average for this time of day. Market players are now waiting for European markets to open, for new signals from forex trading as well as for today’s economic indicators of which the U.S. job market data may receive most attention again. They will also continue to closely eye developments in the Middle East.

Survey: crude oil -2.0; distillates+0.5 ; gasoline -1.0 vs million barrels previous week.
API : crude oil -2.9; distillates +0.8; gasoline +0.2 vs million barrels previous week.
DOE : crude oil -0.2 ; distillates +2.6; gasoline +1.7 vs million barrels previous week.

Houston (ex-wharf indications 11-09)
380cst $621
180cst $692
MGO $1022

New Orleans (ex-wharf indications 11-09)
380cst $622
180cst $674
MGO $1024

Singapore

Crude is neutral with WTI +$0.08. Singapore paper is gaining with +$3.90 for 180cst and +$3.00 for 380cst for Sep, and for Oct 180 cst +$4.00 and 380cst +$3.75 with MGO contracts Sep +$0.35 and Oct 0$0.33. The cargo market is bearish with 180cst -$2.31, 380cst -$1.85 and MGO -$1.06.

The Singapore fuel oil markets only came off between -$4.0 to -$3.0 during the Platts window yesterday on choppy crude movements. The delivered bunker premiums were seen app.$3.0 above cargo prices. This morning markets are trading slightly higher.

380cst $600
180cst $606
MGO $920

Fujairah (delivered indications 12-09)

380cst $601
180cst $661
MGO $990

ARA (Amsterdam - Rotterdam - Antwerp)

Loading problems for lsfo are still holding on. Expect to go better by the end of this week.

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 : $593
(1.0 %) :$623
180cst: $627
(1.0 %):$ 653
MGO 0.1%S: $ 928