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Technical indicators: neutral to bullish

Oil futures traded on NYMEX and ICE commodity exchanges started off quiet in the morning. Dealers called the declining stock markets and worse than expected economic indicators from Europe and the slightly firmer dollar as the driving force. In the afternoon the published U.S. labor market data came in worse than expected, while the U.S. leading indicators and the sales of existing homes in the U.S. showed some improvement. The overall slightly positive economic data from the US gave the markets a little boost and made oil prices rise in the early evening. Furthermore, reports supported the closure of a U.S. refinery in New Jersey and provided the bullish development under the leadership of gasoline and heating oil products for a price jump. Afterwards the resistors were stable but the prices fell again in the late hours of trading for and came back from their daily highs.

Market situation: ConocoPhillips (COP) announced yesterday a refinery in Linden, New Jersey (US), closed at short notice to install new equipment. The plant has a capacity of 238 000 barrels per day and is expected to return to service at 4 November.

The U.S. oil markets remained very strong, on Wednesday the DOE had published in its weekly survey that the U.S. oil stocks reached record levels.

In the southern Caribbean the Tropical Storm Matthew has formed computer models suggest that Matthew will continue to gain energy and could even develop into a hurricane on Friday. The storm is expected to move in a north-northwest direction and will reach the Gulf of Mexico later. Market participants who are monitoring the development of Matthew accurately say that this could represents a potential threat to oil production in the Gulf of Mexico.

ICE Gasoil October is expected to open unchanged to -1,00 dollars at about 676,75 dollars/ton after settling at 677,25 dollars (official settlement price) Thursday night. This was 7,25 dollars above Wednesday's settlement. Volume with some 59.500 deals above average. The crack-spread between ICE brent November contract and the WTI crude widened by more than 3.00 dollars, the widest spread since October 2008. Main reason is the ailing US oil demand compared with a rather healthy oil consumption in Europe.

U.S.

Nymex Access : Oil prices are easing in Asian trading hours and NYMEX electronic trading this morning, as investor's doubts about the economic recovery spread across the markets after morose U.S. employment and housing data. No news in the markets. The traded volume on average.

Houston (ex-wharf indications 24-9)

380cst: $436
180cst: $456
MGO: $715
Very tight avails for 180cst

New Orleans (ex-wharf indications 24-9)

380cst: $439
180cst: $459
MGO: $718

Singapore (correct as of 1430hrs local time)

Crude is losing further albeit slowing in its losses with WTI -$0.40. Singapore paper is reflecting this with 180cst -$2.30 and 380cst -$1.25 for Oct, and Nov 180 cst -$2.30 and 380cst -$1.00 with MGO Oct contracts -$0.73 and for Nov at -$0.69. The cargo market is now adopting the drops with 180cst -$3.37, 380cst -$3.22 and MGO -$1.00.

Singapore fuel oil price lost more than $3.0 yesterday during the Platts window yesterday. The delivered bunker premiums were app. $0.5 above the cargo yesterday as bunker demand remains relatively weak. There are heavy supplies incoming to Singapore in October. Several Asian countries like China, Hong Kong, Taiwan and South Korea are closed for holidays. This morning, fuel is trading down.

High premiums for prompt deliveries:

380cst: $440
180cst: $447
MGO: $657

Fujairah (delivered indications 24/9)

380cst: $441
180cst: $467
MGO: $720

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 60KT was traded in the MOC between 424.00-426.50 with Gunvor and Totsa as the main sellers to Mercuria and Koch as the main buyers.

The Platts Market on Close assessment process saw a cargo offer by Galaxy for HSFO bunker specification fuel being booked by AOT. The HSFO crack was assessed at minus $10.90/barrel, 40 cents/b weaker on the day, however, tighter since the beginning of the week that saw the differential weaker than minus $11/b. Sources linked the move to the volatile crude market, while HSFO market fundamentals remained largely unchanged. In the LSFO market, the physical hi-lo differential gained $3/mt.

380cst: $433
(1.0%): $459
180cst: $451
(1.0%): $479
DMB: N/A
MGO 0.1%S: $685