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Technical indicators: neutral to bearish

Oil prices stayed higher in late NYMEX session and after-hours trading, supported by Wall Street which rose after better-than-expected US data. Oil prices have established in a rather later trend. Both Stochastic and RSI are not giving any clear signals this morning. First WTI crude support line seen at 82.00 dollars today, first resistance line at 82.90 dollars.Oil prices are seen in a narrow range with a bearish tendency today. API data and a stronger dollar will weigh on prices. The release of important US economy data and DOE petroleum stocks this afternoon are expected to give more direction. U.S. orders for durable goods are expected to have climbed 2 percent in September, which would give markets a bullish signal, but the DOE might confirm API's high build in crude stocks which would be extremely bearish.

ICE Gasoil October is expected to open 3,50 to 5,00 dollars lower at about 706,00 dollars/ton after settling at 710,25 dollars (official settlement price) Tuesday night. This was unchanged vs Monday's settlement. Volume with some 36,100 deals below average.

USA: Sales of used homes unexpectedly increased by 10.0% to an annual rate of 4.53 million in September, after 4.13 mio in August. Economists had expected existing home sales to rise to an annual rate of 4.35 million. The Chicago Fed National Activity index for September fell to -0.58 points after a reading of -0.49 in August.

U.S.

Nymex Access : Oil futures are flat in Asian trading hours and NYMEX electronic trading this morning, traders eyeing more US economy data to be released in the afternoon. No news in the markets. The traded volume is on average.

APIs: crude oil +6.432; distillates +0.818 ;gasoline -1.805 million barrels vs previous week. Refinery utilization +0.7 = 81.6%

API data will be released Tuesday at 22:30, DOE data Wednesday at 16:30. crude oil +0.6; distillates -0.6; gasoline -0.2 million barrels vs previous week. Refinery utilization: +0.4%;

Houston (ex-wharf indications 26-10)

380cst: $463
180cst: $483
MGO: $746
Very tight avails for 180cst

New Orleans (ex-wharf indications 26-10)

380cst: $465
180cst: $485
MGO: $750

Singapore (correct as of 1430hrs local time)

Crude is slightly soft ahead of the stock reports with WTI -$0.21. Singapore paper is reflecting this 180cst -$1.35 and 380cst -$0.80 for Nov, and Dec 180 cst -$1.35 and 380cst -$0.85 with MGO Nov contracts -$0.32 and for Dec at -$0.31. The cargo market is mirroring the other values with 180cst -$3.43, 380cst -$4.65 and MGO -$1.23.

Singapore fuel oil markets were down by more than $4/mt following crude slide. However, bullish cargo market and concerns of tight supply kept the delivered bunker premiums higher. They were ranging $1.0 to $2.5 above cargo prices yesterday.

High premiums for prompt deliveries:

380cst: $468
180cst: $478
MGO: $696

Fujairah (delivered indications 26/10)

380cst: $479
180cst: $496
MGO: $742

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 40KT was traded in the MOC between 449,00-455,00 with Litasco as the main seller to Petroned as the main buyer.

NWE continued to hope for arbitrage openings to Singapore to shake up a slumbering HSFO market. Singapore-Rotterdam swaps widened in recent days, but still remained just a couple of US dollars short of making such a trip economically feasible. The low sulphur fuel oil market structure was weighed down by good availability from arbitrage barrels and European production. A source at BP confirmed that the company has sold part cargo of LSFO from Slagen to Petrobras in Rotterdam, while BP was also seen offering one 30kt Slagen specification and one bunker specification (with 50 metals content) LSFO cargo in the MOC process. Shell was also seen offering a Slagen LSFO parcel FOB basis Slagen in the MOC process. Sources said that arbitrage flows into the ARA region continued, albeit at a slower rate compared with the third quarter of 2010.

380cst: $454
(1.0%): $477
180cst: $473
(1.0%): $496
DMB: N/A
MGO 0.1%S: $710