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After yesterday's hefty losses, oil markets have seen a slight upward correction as expected. They also drew support from the first gains at European stock markets. While Brent consequently climbed over its second resistance, the American crude even breached several resistances in a row. However, the upturn was limited by the strong resistance at 106.55 USD (WTI). As expected, oil prices corrected upwards Wednesday morning. ICE futures, however, failed to sustainably breach their first and second resistance at 923.25 USD (G.Oil) and at 108.40 USD (Brent). WTI had initially surged higher above its third resistance , but was not able to hold steady at this level and fell back into its trading range. In the afternoon, housing market data released in the USA did not hold any surprises and thus, did not make an impact on price development. Only with the released of bullish inventory data did oil futures climb up. though the price increase had initially been quite slow. The Fed's surprising announcement to maintain its bond buyings at a monthly rate of 85 billion USD helped oil markets to advance to new highs. WTI saw its biggest rise in prices since August 27 and ICE contracts also closed with substantial gains.

ICE Gasoil contract for October delivery settled at 924.25 USD on Wednesday. This was 1.50 USD above Tuesday's settlement. With some 84,700 deals, the traded volume was far above average.

After several resistances had been breached Wednesday, the Stochastic's lines crossed at all charts. As a result, the indicators has given off a buying signal for all contracts and is thus bullish this morning. The RSI is now back in the neutral zone at all charts and consequently, the market is not oversold anymore. Although yesterday's surge has used up part of the upward potential, ICE futures still have some room left within their uptrend channel. WTI, however, has already breached its key resistance at 108.00 USD. So we consider the technical constellation as neutral to bullish this morning.

U.S.

Nymex gaining: Oil markets have been showing a firm tendency in Asian trading Thursday, still drawing support from Ben Bernanke's statement on the Fed's further monetary policy. The traded volume at NYMEX is far 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 a series of U.S. indicators that are to provide further hints at the state of the economy. They will also continue to closely eye developments regarding the Syrian conflict.

API's: Crude oil -0.3; distillates -0.2; gasoline -0.6 million barrels vs previous week. Refinery utilization +1.3%
DOE's; Crude oil -4.4; distillates -1.1; gasoline -1.6 million barrels vs previous week. Refinery utilization +/-0%
Forecasts: Crude oil -1.5; distillates +1.0; gasoline +/- 0.0 million barrels vs previous week

Houston (ex-wharf indications 18-09)
380cst $619
180cst $684
MGO $1015

New Orleans (ex-wharf indications 18-09)
380cst $622
180cst $665
MGO $1015

Singapore

Crude is surging with WTI +$2.25. Singapore paper is jumping up as well, gaining with +$10.25 for 180cst and +$13.50 for 380cst for Oct, and for Nov 180 cst +$9.35 and 380cst +$11.10 with MGO contracts Oct +$1.95 and Noc +$1.98. The cargo market is yet to respond, losing with 180cst -$3.28, 380cst -$2.91 and MGO -0.20.

The Singapore fuel oil markets extended losses by around -$5.0 during the Asian Platts window yesterday. The delivered bunker premiums were seen app.$2.5 above cargo prices as buying interest increased on lower outright prices. This morning markets are trading significantly higher.

380cst $613
180cst $617
MGO $920

Fujairah (delivered indications 19-09)

380cst $614
180cst $672
MGO $990

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 : $600
(1.0 %) :$624
180cst: $629
(1.0 %):$ 655
MGO 0.1%S: $ 922