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Brent crude oil rose above $112 a barrel on Thursday, as concerns eased over a glut of supply in the market. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Wednesday to keep its production target unchanged at 30 million barrels per day (bpd) for the first half of 2014, despite Iran and Iraq setting high output targets for the year ahead. Saudi Arabia is the world's largest oil exporter and has been pumping over 9 million bpd since early 2011 to make up for supply disruptions in other countries. Brent crude for January delivery was up 18 cents at $112.06 a barrel at 0946 GMT. It lost 74 cents the previous session. U.S. crude was 39 cents higher at $97.59 per barrel, after gaining more than 5 percent over the past four sessions.

ICE Gasoil contract for December delivery settled at 947.25 USD on Wednesday. This was 1.50 USD above Tuesday's settlement. With some 36,600 deals, the traded volume was far below average.

After Tuesday's gains, oil futures at ICE retreated in Wednesday-morning trading still slightly weighed down by the API's report on US oil inventories released on Tuesday night. The API's data prompted investors to cut some of their spreadbets which lead to some selling of Brent and Gasoil. Moreover, market players expected that, at its regular meeting, the OPEC would decide to leave its output ceiling unchanged at 30 mbpd stoking concern that the market might be oversupplied next year. When the cartel confirmed the 30 mbpd-ceiling early Wednesday afternoon, oil futures briefly declined but without seeing any sustainable downward correction as the decision had come as no surprise. Traders refocused on US oil inventories data, with the DOE's report due at 4.30 p.m. on Wednesday afternoon. The DOE's figures had a slightly bullish tone for WTI and a bearish note for product futures. Immediately after the release of the data market players showed but a subdued reaction, however. The bullish impact on WTI and the bearish impact on the other quotations only showed later in the evening. Accordingly, product and ICE futures marked some losses last night while WTI traded near its first resistance.

The stochastic indicator is currently neutral at the Brent chart as its lines have not crossed yet. At the Gasoil chart, the lines of the indicator are running parallel which is why the indicator is neutral here, too. However, the RSI gives a selling signal at the Brent and the Gasoil chart as it has dropped below 70%. We thus regard the technical situation as slightly bearish this morning. The bearish note will get stronger if the stochastic indicator also gives a selling signal at the Brent chart.

U.S.

Nymex bullish: This morning, oil markets have not seen larger moves so far, with quotations trading near yesterday's lows. The traded NYMEX volume is slightly below average for this time of day. Market players are now eying the development at European markets, new signals from forex trading and cues from today's economic indicator.

Survey: crude oil -0,7; distillates -1,2; gasoline +1,3 vs million barrels previous week.
API: crude oil -12,4; distillates +0,5; gasoline -0,1 vs million barrels previous week.
DOE: crude oil -5,6; distillates +2,6; gasoline +1,8 vs million barrels previous week.

With refinery utilisation rising by +3.0% to 92.4%, processing is on the highest level since September 2012. Particularly crude oil processing in the US Gulf region increased, showing a 6.7% rise. Against the backdrop of the higher refinery run rates, US crude oil stockpiles have considerably declined. However, they are still on a historical high for the end of November. The draw in WTI stocks thus has a bullish note even though, in all, inventories are still on a comfortable level.

The changes in product inventories rather have given bearish cues. Along with a retreating distillate and gasoline demand (-0.474 mbpd, resp. -0.036 mbpd), the rise in refinery run rates has lead to a build in stocks of these categories.

Houston (ex-wharf indications 02-12)

380cst $594
180cst $669
MGO $984

New Orleans (ex-wharf indications 02-12)
380cst $614
180cst $649
MGO $988

Singapore

Crude is neutral with WTI +0.09. Singapore paper is bullish with +$4.50 for 180cst and +$2.00 for 380cst for Dec, and for Jan 180 cst -$1.02 and 380cst +$3.50 with MGO contracts Dec +$3.25 and Jan +$0.22. The cargo market is mixed with 180 cst +$0.16 380cst -$0.58 and MGO +$0.31.

The Singapore fuel oil market fell more than -$1.5 during the Asian window yesterday despite stronger crude values. The Asian fuel oil cracks came off significantly while the physical cargo markets continue to see another round of aggressive selling, pressuring the premiums to discount at more than -$1.5. The delivered bunker premiums were seen at $7.0- 8.0 above cargo prices. This morning markets are trading down.

380cst $606
180cst $613
MGO $950

Fujairah (delivered indications 05-12)

380cst $626
180cst $672
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

A lot of operational problems in both Rotterdam and Antwerp. Many suppliers only possible to offer from 06/12 onwards for 380 lsfo.

Indications for delivered bunkers:
380cst : $585
(1.0 %) : $630
180cst: $615
MGO 0.1%S: $ 910