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Technical indicators: neutral to bullish

Oil futures rose in the morning on technical buying, a stronger dollar and a rise in European equities. Resistance lines were breached but the contracts are still moving within the current trading range. The WTI crude's 82.00 dollar resistance is regarded as strong for the time being as the contract fell right back below the mark. US economy data could give some more stimulus in the afternoon.

Oil prices continued to decline in late New York session and after-hour trading after U.S. government figures showed the lowest core annual inflation rate on record and a steep drop in housing starts from already depressed levels. Even though crude oil inventories and products in the USA fell, crude inventories at the key Cushing, Oklahoma hub rose 1.27 million barrels to 33.07 million, depressing the value of U.S. crude relative to European benchmark Brent. Product demand and oil imports also fell, account for the strong decline in crude oil stocks as refiners are not importing as much oil as in times of high demand.

ICE gasoil December is is expected to open 1.50 to 3.00 dollars down at about 711.25 dollars/ton after settling at 713.50 dollars (official settlement price) Wednesday night. This was -10.50 dollars vs Tuesday's settlement. Volume with some 74,200 deals above average.

After oil prices breached more support lines Wednesday, the downward correction has come to an end for the time being. RSI and Stochastic indicator signal a strongly oversold market which makes un upward correction most likely today. A strong WTI crude support is seen at 80.00 dollars today, first resistance at 82.00 dollars

U.S.

Nymex Access : Oil prices are rising in Asian trading hours and NYMEX electronic trading this morning, WTI crude rebounding above 81.00 dollars for a barrel, in a technical reaction to Wednesday's hefty losses and supported by a weaker dollar. No news in the markets. The traded volume is above average.

APIs: crude oil -7.652; distillates +0.222, gasoline -1.653 million barrels vs previous week. Refinery utilization -2.8%

DOEs: crude oil -7.286; distillates -1.110, gasoline -2.657 million barresl vs previous week. Refinery utilization -1.6%

Forecasts: crude oil -0.3; distillates -2.1; gasoline -0.4 million barrels vs previous week.

Houston (ex-wharf indications 17-11)

380cst: $458
180cst: $480
MGO: $748

Very tight avails for 180cst

New Orleans (ex-wharf indications 17-11)

380cst: $461

180cst: $483

MGO: $752

Singapore (correct as of 1430hrs local time)

Crude is dropping like a stone with WTI -$2.91. Singapore paper is also gaining bearish momentum with 180cst -$13.55 and 380cst -$13.50 for Dec, and Jan 180 cst -$13.65 and 380cst -$13.55 with MGO Dec contracts -$2.09 and for Jan at -$2.26. The cargo market is reacting to crude and paper with 180cst -$6.14, 380cst -$5.66 and MGO -$1.28.

The Singapore fuel oil markets were closed yesterday and will reopen today.

High premiums for prompt deliveries:

380cst: $478
180cst: $492

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 68KT was traded between 453.50-455.00 with Petroned as the main seller to Litasco and Gunvor as the main buyers.

The NWE HSFO markets still see strong buying interest, with the Eastern Arbitrage bolstering. Despite four VLCC's have been fixed for early December loading, local avails remain adequate. The Capricorn Star and Al Jabriyah II were fixed for November loading. The HSFO Med market is not attracting any influx yet but the arbitrage out of NWE seems likely to open soon. The NWE LSFO markets are well supplied, with stored product entering the market in December.

380cst: $461
(1.0%): $473
180cst: $475
(1.0%): $490
DMB: N/A
MGO 0.1%S: $723