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Technical indicators: bullish immediate term / neutral medium term

Oil prices were soaring this morning to a fresh 6-month high, as the U.S. dollar came under broad selling pressure after the Federal Reserve announced a plan to buy debt and pump more money into the economy. Oil prices continue their rise due to weaker dollar and bearish US economic data. Resistance lines were breached across the whole complex, and many buying orders were triggered.

At today’s meeting the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.00%, 1.75% and 0.25% respectively.

Oil prices were in a narrow lateral range on a high level in the morning, than started to rise during midday on a weaker euro, first resistance lines were breached cross the whole complex. Later on, prices declined again on technical selling. After the release of latest DOE data, oil prices rose again, there was a decline in most of the products. At 19:30 the Fed said it will buy 600 billion dollars of Treasuries by the middle of next year to stimulate a weak recovery, and after a volatile session oil rose to the highest in six months.

ICE Gasoil November is expected to open 5.00 to 6.00 dollars up at about 727.25 dollars/ton after settling at 722.25 dollars (official settlement price)Wednesday night. This was +6.00 dollars vs Tuesday's settlement. Volume with some 41,500 slightly below average.

Oil prices breached more resistance lines yesterday on the ailing dollar and Feds announcement. RSI is now in the overbought area and Stochastics indicator still gives bullish signals. Oil prices breached important resistance lines and are going now towards 90 dollars. First WTI crude support line seen at 84.20 dollars today, first resistance line at 85.40 dollars.

U.S.

Nymex Access : Oil prices continue their rise in Asian trading hours and NYMEX electronic trading this morning, after yesterday's late gains. Investors are sitting on the sidelines, according to analysts. No news in the markets. The traded volume is above average.

APIs: crude oil -4.137; distillates -4.272, gasoline -3.202 million barrels vs previous week. Refinery utilization -0.4%

DOEs: crude oil +1.950; distillates -3.568, gasoline -2.689 million barrels vs previous week. Refinery utilization -1.9%

Forecasts: crude oil +1.2; distillates -0.8; gasoline +0.2 million barrels vs previous week. Refinery utilization: +0.3%

Houston (ex-wharf indications 3-11)

380cst: $475
180cst: $495
MGO: $760

Very tight avails for 180cst

New Orleans (ex-wharf indications 3-11)

380cst: $477
180cst: $498
MGO: $763

Singapore (correct as of 1430hrs local time)

Crude continues its bullish run with WTI +$1.86. Singapore paper reflecting it with 180cst +$8.20 and 380cst +$9.00 for Nov, and Dec 180 cst +$7.65 and 380cst +$8.05 with MGO Nov contracts +$1.85 and for Dec at +$1.80. The cargo market is cautiously tracking crude with 180cst +$5.81, 380cst +$5.50 and MGO +$0.11.

The Singapore fuel oil markets rebounded more than $5.0/mt during the Platts window yesterday on higher crude price. The cargo premiums have improved recently as November incoming cargoes are less than the average volume. The delivered bunker premiums stayed more than $3.0 above cargo prices yesterday.

High premiums for prompt deliveries:

380cst: $488
180cst: $499
MGO: $725

Fujairah (delivered indications 4/11)

380cst: $493
180cst: $511
MGO: $747

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 60KT was traded between 469-469.75 with Petroned as the main seller to Litasco as the main buyer.

Although the Eastern arbitrage still remains at uneconomical levels, two VLCC's were reported fixed for next week sailing. The HSFO Med market is not attracting any influx as the local market remains slow. The NWE LSFO markets continue to see imports out of the Americas, keeping them long.

380cst: $480
(1.0%): $500
180cst: $504
(1.0%): $524
DMB: N/A
MGO 0.1%S: $743