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Technical indicators: neutral immediate term / neutral to bullish medium term

Oil futures were consolidating in morning trading and at noon, remaining in positive territory on a high level. Prices have closed in on November highs but aren't expected to breach those levels this week. The market will be swinging with equities and other commodities over the next few sessions, while the downside in oil is likely to be limited.

OPEC is unlikely to change its production quota when it meets at the end of next week, said Jose Maria Botelho de Vasconcelos, Angola’s Minister of Petroleum.

Yesterday, oil prices kept on rising in late NYMEX session and after-hour trading, WTI crude gaining some 3 percent, when encouraging jobs data in top consumer the United States helped drive prices to their highest in almost three weeks.

ICE gasoil December is expected to open 7.50 to 9.00 dollars up at about 743.00 dollars/ton after settling at 734.75 dollars (official settlement price) Wednesday night. This was 5.50 dollars above Tuesday's settlement. Volume with some 45,400 deals on average.

Oil prices rose within their short-term uptrend Wednesday, first resistance lines were breached across the complex. As a consequence, the Stochastic indicator has entered overbought territory, but is seen rather neutral this morning as not giving any clear buying or selling signals. The RSI is on its way in overbought territory, but is so far still regarded as neutral. The first support for the WTI crude is seen at 85.00 dollars today, the first resistance at 87.00 dollars.

U.S.

Nymex Access : Oil prices are flat in Asian trading hours and NYMEX electronic trading this morning, taking their breath after Wednesday's gains. WTI crude is trading near 87.00 dollars for a barrel, the highest in almost three weeks.No news in the markets. The traded volume is above average.

APIs: crude oil -1.141; distillates +0.224, gasoline +1.069 million barrels vs previous week. Refinery utilization -1.7%

DOEs: crude oil +1.066; distillates -0.194, gasoline +0.561 million barrels vs previous week. Refinery utilization -2.9%

Forecasts: crude oil -0.6; distillates -0.6; gasoline +0.3 million barrels vs previous week. Refinery utilization: +0.3%

Houston (ex-wharf indications 1-12)

380cst: $488
180cst: $509
MGO: $768

Very tight avails for 180cst

New Orleans (ex-wharf indications 1-12)

380cst: $491
180cst: $511
MGO: $772

Singapore (correct as of 1430hrs local time)

Crude is back on its bullish track with WTI +$1.86. Singapore paper is reflecting it with 180cst +$9.52 and 380cst +$8.53 for Dec, and Jan 180 cst +$9.51 and 380cst +$8.52 with MGO Dec contracts +$2.45 and for Jan at +$2.36. The cargo market is not yet reacting with 180cst -$3.57, 380cst -$3.54 and MGO -$1.02.

High premiums for prompt deliveries:

380cst: $504
180cst: $514
MGO: $750

Fujairah (delivered indications 2/12)

380cst: $501
180cst: $536
MGO: $764

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 110KT was traded between 468.00-473.00 with Petroned and Litasco as the main sellers to RWE as the main buyer.

The NWE HSFO markets continue to firm, but the Eastern arbitrage is now considered to be break even only. On the back of many fixtures this week; with the VLCC The Hampstead as the latest, the markets have to find out how this influx will be absorbed in Singapore. 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: $482
(1.0%): $493
180cst: $500
(1.0%): $514
DMB: N/A
MGO 0.1%S: $750