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WTI for December delivery rose $1.43, or 1.5 percent, to settle at $94.80 a barrel on the New York Mercantile exchange, the biggest one-day advance since Oct. 2. The contract dropped to $93.37 yesterday, the lowest closing price since June 4. The volume of all futures traded was 1.6 percent below the 100-day average at 3:52 p.m. Brent for December settlement slid 9 cents to $105.24 a barrel on the London-based ICE Futures Europe exchange, the lowest close since July 2 . Volume was 19 percent above the 100-day average. The European benchmark crude was at a premium of $10.44 to WTI, compared with $11.96 yesterday.

ICE Gasoil contract for November delivery settled at 905.00 USD on Wednesday. This was 2.00 USD above Tuesday's settlement. With some 45,700 deals, the traded volume was below average.

Oil prices traded higher in Wednesday morning trading, trying several times to breach their first resistances lines, still supported by Tuesday's API data. Market participants liquidated their short positions they had accumulated in anticipation of another strong build in US crude stocks. But the figures were a disappointment for the bears and supported the oil complex at ICE and NYMEX. But gains were limited ahead of the release of the more observed DoE report that gives more detailed information on oil imports and demand. The report that was released at 4.30 p.m. as usual gave the oil market a bullish signal, as the DoE reported a smaller-than-expected increase in US crude stocks and an important draw in oil product reserves when at the same time demand has increased in the U.S. But the price rise at the ICE was only temporary. In view of the modest rise in crude reserves and the reduction in oil product stocks that makes it necessary for refiners to increase utilization rates in the near term, market participants reduced their bets on a rise in the Brent-WTI spread by going long on WTI and going short on Brent. WTI finished thus considerably higher on Wednesday while Brent and the product futures at ICE and NYMEX settled at their day lows.

RSI and Stochastic both triggered a buying signal at the WTI chart yesterday, supporting the contract along with the bullish DoE report. But we are excluding the contract from our considerations today as it is highly influenced by spread betting that might have distorted WTI's development. At the ICE charts the RSI is still at the neutral level and is not expected to give any signals today. The Stochastic is also seen neutral and will give a buying signal only if its two lines cross. Downside is limited today by the 104.60 dollar key support at the Brent chart. Because of the lack of fresh signals we consider the technical market situation as neutral today.

U.S.

Nymex bearish: Oil prices are little changed at ICE and NYMEX this morning, trading in a narrow range with a slightly bearish tendency after last night's volatile trading. The traded NYMEX volume is little below average for this time of day. Market players anticipate the opening of European markets and the release of some economic indicators, the most observed will be the ECB's decision on interest rates and the US GDP. Traders will also eye the new round of nuke talks between Iran and Western powers that is starting today.

Survey: crude oil +2.2; distillates -1.5; gasoline -0.4 vs million barrels previous week.
API: Crude oil +0.9; distillates -2.8; gasoline -4.3 vs million barrels previous week.
DOE: Crude oil +1.6; distillates -4.9; gasoline -3.8 vs million barrels previous week.

Houston (ex-wharf indications 5-11)

380cst $590
180cst $654
MGO $981

New Orleans (ex-wharf indications 5-11)
380cst $593
180cst $643
MGO $981

Singapore

Crude easing with WTI +$0.53. Singapore paper is bearish with -$6.50 for 180cst and -$5.50 for 380cst for Nov, and for Dec 180 cst -$5.00 and 380cst -$4.75 with MGO contracts Nov -$1.51 and Dec -$0.47. The cargo market is mixed with 180 cst -$1.71 380cst +$0.46 and MGO -$0.19.

380cst $592
180cst $598
MGO $900

Fujairah (delivered indications 7-11)

380cst $596
180cst $656
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $570
(1.0 %) :$590
180cst: $610
(1.0 %):$ 620
MGO 0.1%S: $ 870