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Yesterday the Fed surprised market participants by saying it would continue the pace of its billion dollar bond buying. Both Brent and WTI lost about 5% since the beginning of September and WTI heads for its third weekly loss in a row. The euro initially continued to retreat in Asian trading but has made up for some losses this morning. The common currency hit a low at 1.3474 USD but lately climbed back up to 1.3502 USD again. According to traders, ECB directory member Benoît Coeuré's remarks weighed on the euro. Mr. Coeuré said that the ECB had enough slack to realize another rate cut. Moreover, better than expected figures on initial jobless claims in the USA had supported the dollar yesterday afternoon sending the euro lower.

After Wednesday's late decline and a short phase of direction seeking, oil futures steadied on Thursday morning. This was on the one hand a technical upward correction as Brent's support at 108.00 USD remained strong and on the other hand investors increased their speculative long positions as many of them seized the low level of prices to cover their needs. After the technical constellation provided new bullish signals, quotations at ICE and NYMEX surged above several resistances despite the stronger dollar (vs. the euro). They only stopped short of the 922.00 dollars bar (Gasoil) and the 109.30 dollars resistance (Brent). At these levels oil prices consolidated as the economic data out of the USA came in mixed providing to decisive clues for oil markets. While futures at ICE settled near their highs, WTI marked but few gains having suffered a short dip just before the settlement. The contract is heading for its third consecutive weekly decline, which would be its weakest performance in the past four months.

ICE Gasoil contract for October delivery settled at 920.50 USD on Thursday. This was 1.50 USD above Wednesday's settlement. With some 38,900 deals, the traded volume was below average.

Yesterday, the lines of the stochastic indicator crossed at the Brent chart, too. The indicator thus gave a buying signal. At the gasoil chart, the indicator can meanwhile be seen as neutral again. Moreover, the stochastic indicator doesn't give any clear signal at the WTI chart, either. However, the RSI surpassed the 30% line at the Gasoil and the WTI charts yesterday providing a strong bullish signal. Thus, the RSI is now in neutral territory again at all charts giving no more signals for the time being. The down trends for Gasoil and Brent are still intact and so we expect that the latest rise in oil prices was but a technical upward correction that won't lead to a change in the trend. Therefore we assess the technical situation as neutral to bullish, for now.

U.S.

Nymex easing: Oil prices initially retreated in Asian trading last night but are currently pulling back from their lows. The traded volume at NYMEX is below average for this time of day. Market players are now eying the performance of European markets and new signals from forex trading or from the raft of economic indicators due to be released in the euro zone and in the USA today. They will also look ahead to the UN Security Council's vote on the Syria resolution.

Houston (ex-wharf indications 26-09)
380cst $613
180cst $680
MGO $1007

New Orleans (ex-wharf indications 26-09)
380cst $614
180cst $652
MGO $1010

Singapore

Crude is easing still with WTI -$0.23. Singapore paper is bouncing back up with +$4.75 for 180cst and +$4.95 for 380cst for Oct, and for Nov 180 cst +$3.40 and 380cst +$3.45 with MGO contracts Oct +$0.86 and Nov +$0.84. The cargo market is turning with 180cst -$3.03, 380cst -$2.39.

The Singapore fuel oil market erased previous gains, dropping app. -$3.0 to -$2.0 during the Asian Platts window yesterday. The delivered bunker premiums saw some improvement moving firmer to $3.5-4.0/mt above cargo prices. This morning markets are trading slightly higher.

380cst $614
180cst $617
MGO $910

Fujairah (delivered indications 27-09)

380cst $615
180cst $673
MGO $980

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 %) :$609
180cst: $611
(1.0 %):$ 635
MGO 0.1%S: $ 897