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Crude oil prices eased marginally in Asia on Thursday as the end of the Federal Reserve's bond buying program brought strength to the dollar.

Futures at ICE and NYMEX showed a steadier tendency on Wednesday morning gaining ground supported by the slightly bullish technical analysis at that time. Prices exceeded their lateral trend breaching several resistances, among others the hurdles at 87.20 USD Brent and 746.50 USD Gasoil, which were mentioned in the technical analysis. In the course of the day the stochastic at the Brent chart confirmed the buying signals which had been generated at the Gasoil and the WTI chart. The DOE's data on weekly US oil inventories which were released on Wednesday afternoon were bullish in general but seemed to be slightly mitigated and not really strong as the technical reaction had absorbed most of the upward potential before. Brent approached its resistance at 88.00 USD but couldn't breach it. In the evening, after our submission deadline, the US Fed announced the results of its latest meeting. Therefore the dollar considerably increased which made US dollar-denominated assets like oil futures more expensive for traders outside the United States. Market players used this situation to take profits from the long positions they had raised before. Futures at ICE and NYMEX couldn't continue to expand their intraday highs in late trading and slightly decreased. However, oil futures didn't shed all of their gains so that they settled higher in London and New York.

ICE Gasoil contract for November delivery settled at 757.00 USD on Tuesday, this is 17.25 USD above Monday's settlement. With some 54,200 deals the traded volume (front month) was on average.

The stochastic indiator at the WTI and Gasoil chart stays bullish. After the indicator at the Brent chart confirmed buying signals on Wednesday afternoon, it is also to be interpreted bullish this morning. Like in the last few weeks, the RSI keeps consolidating on a neutral level unable to trigger any important signals. The stochastic at ICE and NYMEX charts is bullish but Wednesday's upward movement absorbed a part of the upward potential. The next key resistance at the Brent chart is at 88.00 USD and even the GD 21 could come into play as an area of strong resistance. The buying signals and oil futures' break above the lateral trend speak for an upward test. Since the first signals of the stochastic at the WTI and Gasoil chart had already been triggered on Tuesday evening, we consider the technical constellation neutral to bullish for the time being, however.

U.S.

Nymex on avarage: Futures at ICE and NYMEX are trading in a narrow range. The euro's sharp drop could weigh on prices in the course of the day and prompt traders to take profits from their long positions. The traded volume at NYMEX is about on average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots and the economic indicators to be released today.

Forecast: Crude oil +3.8; Distillates -1.5; Gasoline -0.7 million barrels vs previous week.
DOE: Crude oil +2.1; Distillates -5.3; Gasoline -1.2 million barrels vs previous week.
API: Crude oil +3.2; Distillates -3.0; Gasoline -3.7 million barrels vs previous week.

Houston (ex-wharf indications 29-10)
380cst $466
180cst $567
MGO $848

New Orleans (ex-wharf indications 29-10)
380cst $491
180cst $531

Singapore (delivered indications 30-10)

WTI is gaining with +$0.07 Singapore paper is up with +$0.50 for 180cst with +$0.25 for 380cst for Nov, and for Dec 180 cst +$0.50 and 380cst with +$0.35 with MGO contracts Nov neutral with +$0.57 and in Dec gaining with +$0.51. The cargo market is gaining with 180cst +$4.58, 380cst with +$3.52 and MGO with +$0.93.

The Singapore fuel oil prices rose another $4.0 during the Asian Platts window tracking the firmer crude prices. The Singapore fundamentals look balanced with ample supply. The delivered bunker premiums were seen at app. $6.75 above cargo prices.

380cst $480
180cst $498
MGO $738

Fujairah (delivered indications 30-10)

380cst $486.5
180cst $525
MGO $942

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $462
(1.0 %) : $478
MGO 0.1%S: $728