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Technical indicators: neutral to bullish

Oil futures rose this morning, but pulled back slightly from a two-year peak amid caution ahead of a key U.S. employment report when the dollar recovered and equities retreated after pushing higher.

US economy data: Nonfarm payrolls rose by a greater-than-expected 151,000 last month as private-sector employers added 159,000 jobs. The September number was revised to show payrolls fell by 41,000, less than an originial estimate of a 95,000 decline. However, the unemployment rate, which is obtained from a separate household survey, remained at a lofty 9.6% in October.

Oil prices were in a narrow lateral range on a high level in the morning Yesterday, 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 6.50 dollars up at about 743.25 dollars/ton after settling at 737.50 dollars (official settlement price)Thursday night. This was +16.25 dollars vs Wednesday's settlement. Volume with some 36,600 deals below average.

Oil prices breached more resistance lines yesterday on the ailing dollar. RSI is now in the overbought area and Stochastics indicator still gives bullish signals. First WTI crude support line seen at 85.00 dollars today, first resistance line at 87.50 dollars.

U.S.

Nymex Access : Oil prices continue their rise in Asian trading hours and NYMEX electronic trading this morning. Investors are waiting for US economic data this afternoon. No news in the markets. The traded volume is above average.

Houston (ex-wharf indications 4-11)

380cst: $483
180cst: $504
MGO: $767

Very tight avails for 180cst

New Orleans (ex-wharf indications 4-11)

380cst: $486
180cst: $507
MGO: $770

Singapore (closed due to National Holiday)

The Singapore fuel oil prices following increasing crude were up by app. $9/mt during Platts window yesterday.

High premiums for prompt deliveries:

380cst: $492
180cst: $503
MGO: $725

Fujairah (delivered indications 5/11)

380cst: $495
180cst: $518
MGO: $740

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 68KT was traded between 479-479.75 with BP and Petroned as the main sellers 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: $482
(1.0%): $502
180cst: $505
(1.0%): $529
DMB: N/A
MGO 0.1%S: $744