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Technical indicators: neutral to bullish

Oil prices edge a bit higher in electronic trading, extending Wednesday's gains. No news in the markets. Traded volume remains very thin.

Yesterday, oil prices surged during NYMEX floor trading, WTI crude trading near the highest settlement in more than a week after U.S. jobless claims fell to the lowest level since 2008 and consumer spending, which accounts for 70 percent of the U.S. economy, increased for a fifth month in October. Also, today's holiday in the USA tempted traders to cover their short positions. The rather bearish DOE inventory data had no immediate influence on prices.

ICE gasoil December is expected to open 2.50 to 3.50 dollars higher at about 722.25 dollars/ton after settling at 719.25 dollars (official settlement price) Wednesday night. This was 19.50 dollars above Tuesday's settlement. Volume with some 62,200 deals above average.

Oil prices breached several resistance lines across the complex Wednesday, until the strong WTI crude resistance at 84.45 dollars stopped the rally. The short-term downtrend was breached. RSI and Stochastic indicator started giving bullish signals in the afternoon, leaving the oversold territory. The first support for the WTI crude is seen at 82.00 dollars today, the first resistance at 84.45 dollars.

U.S.

Nymex Access : Oil prices are edging a bit lower in Asian trading hours and NYMEX electronic trading this morning, paring earlier gains as the euro weakened for a fourth day against the U.S. dollar and unexpected builds in US petroleum stocks weigh. No news in the markets. The traded volume is on average.

APIs: crude oil +5.189; distillates -0.311, gasoline -0.499 million barrels vs previous week. Refinery utilization +2.1%

DOEs: crude oil +1.029; distillates -0.541, gasoline +1.913 million barrels vs previous week. Refinery utilization +1.5%

Forecasts: crude oil -1.8; distillates -1.5; gasoline -1.0 million barrels vs previous week. Refinery utilization: +0.2%.

Survey of US natural gas storage volumes according to EIA to be released one day earlier due to Thanksgiving Day in the USA at 18:00 hours for the week til November 19, 2010: -1,00 bcf (billion cubic feet) vs the previous week. Inventories would thus be 9.7% above the 5-year average and +1% vs year-ago figures.

Houston (ex-wharf indications 23-11)

380cst: $457
180cst: $480
MGO: $753

Very tight avails for 180cst

New Orleans (ex-wharf indications 23-11)

380cst: $460
180cst: $483
MGO: $756

Singapore (correct as of 1430hrs local time)

Crude is surging with WTI +$2.14. Singapore paper is gaining bullish momentum as well with 180cst +$10.35 and 380cst +$10.40 for Dec, and Jan 180 cst +$9.30 and 380cst +$9.35 with MGO Dec contracts +$2.08 and for Jan at +$2.07. The cargo market is not yet reacting with 180cst +$3.24, 380cst +$3.32 and MGO -$0.06.

The Singapore fuel oil markets rebounded more than $3.0 as crude strengthened during the Platts window. There were strong buying interests in the front intermonth time spreads as a reflection of the current tight supply situation. The delivered bunker premiums remained a range of $4.0 to $6.0 above cargo prices yesterday

High premiums for prompt deliveries:

380cst: $489
180cst: $499
MGO: $729

Fujairah (delivered indications 25/11)

380cst: $482
180cst: $520
MGO: $740

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 64KT was traded between 461.00-463.00 with again Petroned as the main seller to Litasco as the main buyer.

The NWE HSFO markets are firming slightly, as the Eastern Arbitrage is starting to open now. The Front Crown is reported being fixed for for early December loading. The Singaporean markets are seen 60 cents in normal backwardation. The HSFO Med markets are oversupplied and sluggish, with cargoes to NWE starting to become more attractive. 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 and product arriving out of the US.

380cst: $468
(1.0%): $479
180cst: $482
(1.0%): $494
DMB: N/A
MGO 0.1%S: $727