---

Oil futures edged higher this morning, but price action was likely to remain volatile as market players still adjusted positions in wake of last week's OPEC decision to keep production quotas unchanged.

Oil futures return from their yesterday's lows and slightly increase in the morning but there are still neither fresh signals nor important news. The traded volume at NYMEX is above 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 series of economic indicators which are to be released today and especially for the result of the ECB's council meeting.

ICE Gasoil contract for December delivery settled at 641.00 USD on Wednesday, this is unchanged versus Tuesday's settlement. With some 38,000 deals the traded volume (front month) was far below average.

There are no fresh signals this morning. The RSI is still below the 30 line and will only be able to generate fresh buying signals if he breaches this line from bottom to top. The stochastic indicator stays neutral but still shows a divergence at the Brent and the WTI chart. The indicator's lines already converged again at the Gasoil chart. A fresh selling signal which could lead to fresh technical selling pressure might only be triggered if the indicator’s lines cross. We consider the technical constellation as neutral this morning in a market situation without any fresh signals.

U.S.

Nymex above avarage: Oil futures return from their yesterday's lows and slightly increase in the morning but there are still neither fresh signals nor important news. The traded volume at NYMEX is above 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 series of economic indicators which are to be released today and especially for the result of the ECB's council meeting.

Forecast: Crude oil +1.5; Distillates -0.6; Gasoline +0.6 million barrels vs previous week.
DOE: Crude oil -3.7; Distillates +3.0; Gasoline +2.1 million barrels vs previous week.
API: Crude oil -6.5; Distillates +2.5; Gasoline ±0.0 million barrels vs previous week.

Houston (ex-wharf indications 04-12)
380cst $400
180cst $504
MGO $785

New Orleans (ex-wharf indications 04-12)
380cst $425
180cst $484
MGO $761

Singapore (delivered indications 04-12)

WTI is losing with -$0.87 Singapore paper is down with -$8.25 for 180cst with -$8.50 for 380cst for Dec, and for Jan 180 cst -$4.50 and 380cst with -$6.25 with MGO contracts Dec bearish with -$1.08 and in Jan with -$1.11. The cargo market is losing with 180cst -$10.42, 380cst with -$9.31 and MGO with -$1.41.

380cst $425
180cst $440
MGO $650

Fujairah (delivered indications 04-12)

380cst $420
180cst $460
MGO $880

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $370
(1.0 %) : $380
MGO 0.1%S: $622