---

Crude prices reversed overnight gains this morning as investors booked profits on continued sentiment that global supplies remain more than ample despite news Saudi Arabia trimmed output in September to support the market.

On Thursday morning, the slightly bearish technical constellation that provided selling signals (stochastic) lead to expect that oil futures would keep testing their downside. Wednesday's sharp decline prompted investors to cover their short positions, however. WTI failed to break below its key-support at 80 USD, however, and so oil futures didn't extend their losses. In the course of trading, this short-covering rather pushed quotations up to their first resistances. When oil futures surpassed these resistances in early-afternoon trade, a wave of technical buying was triggered. Futures surged and reports saying that Saudi Arabia cut its oil supplies to international and domestic markets in September added to bullish momentum. Oil prices held steady until late in the evening, settling with new highs. Thus, they pared Wednesday evening's losses.

ICE Gasoil contract for November delivery settled at 741.50 USD on Thursday, this is -0.25 USD above Wednesday's settlement. With some 54,600 deals the traded volume (front month) was on average.

With Thursday's sharp rise, The selling signals of the stochastic indicator waned. The indicator is now slightly bullish at the ICE charts as its lines have climbed back above 50%. At the WTI chart is still slighty bearish. After the lines of the indicator have crossed they are running in parrellels below 50%. The RSI surpassed 30% but failed to provide a clear buying signal, see also technical analysis. Since there are no homogenuous cues, the technical constellation can be considered neutral this morning indicating more consolidation during which WTI should stay above the key-support at 80 USD.

U.S.

Nymex above avarage: Oil futures have pulled back from Thursday's highs losing some ground in electronic trading this morning as fresh cues are lacking. Obviously, many traders tend to take some profits from Thursday's gains. The traded volume is above average at this time of day. Investors are waiting for the European financial and the exchange market to open and will closely watch the situation in the geopolitical hotspots and some economic indicators due today.

Houston (ex-wharf indications 24-10)
380cst $473
180cst $577
MGO $853

New Orleans (ex-wharf indications 24-10)
380cst $476
180cst $572
MGO $852

Singapore (delivered indications 24-10)

WTI is gaining with +$1.20 Singapore paper is up with +$5.40 for 180cst with +$5.00 for 380cst for Nov, and for Dec 180 cst +$5.40 and 380cst with +$5.55 with MGO contracts Nov gaining with +$1.05 and in Dec with +$1.00. The cargo market is losing with 180cst -$5.25, 380cst with -$5.87 and MGO with -$0.66.

After a mid-week public holiday the Singapore fuel oil prices reopened app. -$5.5 down during. The latest Singapore heavy residual inventory saw a slight draw of -0.22 mbbl to 20.49 mbbl while delivered bunker premiums softened to app. $6.0 above cargo prices.

380cst $469
180cst $485
MGO $726

Fujairah (delivered indications 24-10)

380cst $485
180cst $540
MGO $948

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $460
(1.0 %) : $479
MGO 0.1%S: $723