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Crude oil prices rebounded slightly in Asia this morning even as storage woes for bulging crude supplies hang over the market as production outpaces demand for now.

After Wednesday's losses, oil futures advanced Thursday morning as investors covered some of their short-positions. This particularly bolstered crude oil futures, however, whereas the Gasoil contract failed to surpass its first short-term resistance sustainably. Crude oil futures were buoyed by the shut-down of production at Libya's largest oil field (Sharara). The fact that the dollar climbed Wednesday night actually favoured a decline in oil prices. In the afternoon, the bearish situation on the market increasingly weighed on futures again and so, particularly Gasoil lost ground. After Gasoil had dropped below its important support at 826.50 USD (16-month-low), the other contracts were sent lower by technical selling orders, too. In late trade, oil futures considerably declined dropping to the next supports at 820.00 USD (Gasoil) and 97.45 USD (Brent). These supports limited losses. Apart from this, the euro regained some ground in the course of the day, as investors on the financial markets started to price in the possibility that Scotland would remain a part of Great Britain. The combination of the stronger euro and the decline in oil prices yesterday afternoon pointed to more downward potential for domestic prices in the Eurozone.

ICE Gasoil contract for October delivery settled at 824.00 USD on Thursday, this is -10.75 USD below Wednesday's settlement. With some 62,400 deals the traded volume (front month) was slightly above average.

The bias of the stochastic indicator has meanwhile changed at ICE and NYMEX charts. Since the lines of the indicator have crossed, it has given selling signals. Thus, the index points to more profit taking within the scope of the existing long-term downtrends. The RSI is still below 30% giving no fresh cues. This situation as well as the fresh selling signals of the stochastic indicator prompts us to assess the technical constellation as bearish this morning, even though market players might cover some of their short positions ahead of the weekend preventing too significant losses.

U.S.

Nymex on avarage: Oil prices at ICE and NYMEX struggled to find a direction in Asia and in electronic trading early this morning trading on a low level as investors were waiting for new cues. The traded volume at NYMEX is about on average for this time of day. Investors will eye the development at stock and forex markets today as well as the reactions on the results of referendum in Scotland. They will also closely watch the situation in the geopolitical hotspots and today's economic indicators.

Houston (ex-wharf indications 19-9)
380cst $565
180cst $664
MGO $935

New Orleans (ex-wharf indications 19-9)
380cst $566
180cst $656
MGO $928

Singapore (delivered indications 19-9)

WTI is losing with -$1.61 Singapore paper is down with -$5.15 for 180cst with -$5.75 for 380cst for Oct, and for Nov 180 cst -$5.15 and 380cst with -$4.75 with MGO contracts Oct losing with -$1.22 and in Nov with -$1.21. The cargo market is gaining with 180cst +$0.27, 380cst losing with -$0.44 and MGO losing with -$0.51.

The Singapore fuel oil prices were trading around parity during the Asian Platts window yesterday. The recent Singapore heavy residual inventory reported a build of +1.28 mbbl to 19.18 mbbl. The delivered bunker premiums were seen at app.$10.0 above cargo prices.

380cst $570
180cst $583
MGO $829

Fujairah (delivered indications 19-9)

380cst $592
180cst $630
MGO $982

ARA (Amsterdam - Rotterdam - Antwerp)

Please be advised we have decided to dispense with 180cst RME180 indications either for HS or LS as part of our daily report for Rotterdam to clients. The reason being prices are so dependent on volume and dates that putting a figure to it is highly counter-productive and serves only to give false expectations to the customer. Avails are so limited these days and also premiums are charged for smaller quantities (due to the size of the tank required to be reserved for the blend) that it can really effect prices.

Indications for delivered bunkers:
380cst : $540
(1.0 %) : $550
MGO 0.1%S: $798