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Technical indicators: neutral

Oil prices declining again after the short recovery, but contracts could not breach their resistance lines and as a reaction prices dropped back. Concerns about China's next step of its interest rate and profit taking ahead of the week-end apply also pressure to the markets. Crude futures were rising this morning, testing further resistance lines. With no major macroeconomic data due, markets are eyeing other economic news for direction. Any comments Friday from a meeting between the Fed, ECB, IMF and PBoC (People's bank of China) in Frankfurt will also be in focus.

U.S. crude oil futures prices rebounded yesterday evening, snapping a four-session losing streak as concerns about Ireland's debt crisis eased, weakening the dollar and boosting investor appetite for risk in stocks and commodities. Gasoline led the rally in the oil futures complex, rising more than 3 percent after the unexpected and large drop in gasoline stocks reported on Wednesday by the U.S. Energy Information Administration. US economy data were also better than expected.

ICE gasoil December is is expected to open 1.00 to 2.50 dollars down at about 713.75 dollars/ton after settling at 715.50 dollars (official settlement price) Thursday night. This was +2.00 dollars vs Wednesday's settlement. Volume with some 71,900 deals above average.

RSI and Stochastic indicator still signal a strongly oversold market which makes un upward correction. A strong WTI crude support is seen at 80.80 dollars today, first resistance at 82.45 dollars.

U.S.

Nymex Access : Oil prices are declining in Asian trading hours and NYMEX electronic trading this morning, WTI crude arround 82.00 dollars for a barrel, in a technical reaction to Thursday's hefty gains. No news in the markets. The traded volume is above average.

US natural gas storage volumes according to EIA for the week till November 12th, 2010: +3,00 bcf (billion cubic feet) at 3.843bcf vs 3.840bcf the previous week.

Houston (ex-wharf indications 19-11)

380cst: $458
180cst: $482
MGO: $753
Very tight avails for 180cst

New Orleans (ex-wharf indications 19-11)

380cst: $461
180cst: $484
MGO: $755

Singapore (correct as of 1430hrs local time)

Crude is bouncing up slightly after the heavy losses with WTI +$0.85. Singapore paper is mirroring crude with 180cst +$7.15 and 380cst +$6.70 for Dec, and Jan 180 cst +$7.20 and 380cst +$6.70 with MGO Dec contracts +$0.80 and for Jan at +$0.80. The cargo market is not yet reacting with 180cst -$14.72, 380cst -$13.90 and MGO -$1.97.

The Singapore fuel oil markets were reopened yesterday with values coming off more than $14.0/mt following the recent drop in crude. The front intermonth time spreads have gone back into contango on heavy selling interest. The delivered bunker premiums ranged $4.0 to $5.0 above cargo prices yesterday as crude prices continued to strengthen.

High premiums for prompt deliveries:

380cst: $486
180cst: $500
MGO: $716

Fujairah (delivered indications 19/11)

380cst: $485
180cst: $517
MGO: $745

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 34KT was traded between 455.00-456.50 with Petroned as the main seller to Totsa as the main buyer.

The NWE HSFO markets seem to be well supplied, with the Eastern Arbitrage not at workable levels at the moment. 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. For the LSFO there are some cargoes seen moved from NWE to the Med, although the arbitrage is not considered to be open yet. The NWE LSFO markets are well supplied, with stored product entering the market in December.

380cst: $464
(1.0%): $478
180cst: $479
(1.0%): $494
DMB: N/A
MGO 0.1%S: $726