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Brent crude futures stabilized below $108 a barrel on Thursday on positive economic data from China after a rise in U.S. crude stocks drove prices down sharply the previous day. In China, the world's second-largest oil consumer, strong new orders in October drove the biggest expansion in its manufacturing sector in seven months, a preliminary survey of purchasing managers showed, providing evidence that the Chinese economy was stabilizing. Brent crude oil futures had gained 20 cents to trade under $108 a barrel. U.S. crude oil futures gained 40 cents to trade above $97 after figures from the U.S. Energy Information Administration (EIA) pointed to ample supply in the top oilconsumer. Quotations at ICE and NYMEX already kept track of Tuesday's losses on Wednesday morning. Bearish market fundamentals and the selling signal of the stochastic indicator at the Gasoil chart (later also at the Brent chart) have weighed on oil prices. Brent and Gasoil's break below the important supports at 109.60 USD and 933.25 USD paved the way for more profit taking. Market participants expected that the DOE's oil inventories data (due yesterday afternoon) would renewedly show massive builds in crude oil stocks and so they raised their bets on a widening spread between the two benchmark crude oil contracts buying Brent futures and selling WTI futures. Consequently, there was a certain phase in the early afternoon, when Brent climbed back above 109.60 USD whereas the other futures at ICE and NYMEX stayed near their intraday lows. However, this phase had already ended before the release of the DOE's report. Oil futures across the board declined as traders priced in their bearish expectations of US oil inventories. The DOE's figures came in even more bearish than expected and so selling pressure at oil markets renewedly increased in the evening making ICE futures end the day at new lows.

ICE Gasoil contract for November delivery settled at 920.00 USD on Wednesday. This was -16.50 USD below Tuesday's settlement. With some 90,600 deals, the traded volume was far above average.

The stochastic indicator is clearly bearish this morning at the Brent and the Gasoil charts. The selling cues had already been generated yesterday afternoon. The have in part already been spent by the massive profit taking oil markets saw before and even after the release of the DOE's data. At the WTI chart, the stochastic indicator has turned neutral again by now, with its lines having converged. This might lead to a buying signal if the lines of the indicator crossed. The RSI at the Brent and the WTI chart is below 30% and thus in oversold territory. If the indicator breaks above this line, there would be another buying signal. Given the still bearish stochastic indicator at the ICE charts, we still assess the technical situation as slightly bearish, however. There are no buying signals yet, even tough after the massive decline at oil markets a moderate technical upward correction is to be expected, with traders probably taking some profits from their short positions.

U.S.

Nymex bearish: After investors took profits yesterday afternoon oil futures at ICE and NYMEX are currently slowly edging higher again. Profit taking from short positions (Short-Covering) and the better than expected Chinese HSBC purchasing manager index buoyed prices. The traded volume at NYMEX is about on average for this time of day. Market players are now keeping an eye on the performance of European markets and the upcoming economic data.

Houston (ex-wharf indications 23-10)
380cst $601
180cst $658
MGO $984

New Orleans (ex-wharf indications 23-10)
380cst $598
180cst $648
MGO $987

Singapore

Crude is bearish with WTI -$0.32. Singapore paper is mixed, although stays neutral with +$1.90 for 180cst and -$0.10 for 380cst for Nov, and for Dec 180 cst +$0.15 and 380cst -$0.10 with MGO contracts Nov -$1.00 and Dec -$1.13. The cargo market is bearish with 180cst -$3.71, 380cst -$4.34.

380cst $616
180cst $625
MGO $935

Fujairah (delivered indications 24-10)

380cst $620
180cst $677
MGO $1007

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $588
(1.0 %) :$605
180cst: $618
(1.0 %):$ 635
MGO 0.1%S: $ 885