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Technical indicators: neutral

Oil prices fell sharply after the release of US petroleum inventories, following US and European equity markets, only to pare their losses in after-hours trading and this morning in East Asia. Oil prices are seen in consolidation today after yesterday's petroleum inventories had no impact on the market. The movements of the dollar and equity markets will determine today's direction. Apart from US jobless claims, there are no important economic news on the agenda today. The medium-term uptrend is still solid. RSI and Stochastic indicators are not giving selling signals any more, the RSI starts entering overbought territory again. The first support for the WTI crude is seen at 88,35 dollars today (seven-day moving average), the first resistance at 90,00 dollars.

ICE gasoil April is is expected to open +7,25 dollar to +8,75 at about 765,25 dollars/ton settling at 757,25 dollars (official settlement price) Wednesday night. This was 3,50 dollars below Tuesday's settlement. Volume with some 31.300 deals significantly below average. The contract expires tomorrow. The traded volume is already very thin as investors focus on the new front month contract for January delivery.

U.S.

Nymex Access gaining: Oil prices rebounded in Asian trading hours and NYMEX electronic trading this morning, as the dollar weakened and some optimism returned to stock markets in Asia on hopes that the extension of U.S. tax cuts would boost consumption. No news in the markets. The traded volume is well above average.

Survey of US petroleum inventories due out today is as follows: crude oil +2.00; distillates -1.40, gasoline +0.1 million barrels vs previous week. Refinery utilization expected to remain unchanged.

Houston (ex-wharf indications 9/12)

380 cst $485
180 cst $500
MDO $755

Very tight avails for 180 cst

New Orleans (ex wharf indications 9/12)

380 cst $488
180 cst $504
MDO $759

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is bullish again with WTI +$1.12. Singapore paper is actually lagging slightly with Dec +$1.15 for 180 cst and +$2.05 for 380 cst, and for Jan 180 cst +$1.70 and 380cst +$1.60 with MGO Dec contracts at +$0.79 and for Jan at +$0.71. The cargo market is still reacting to the slight recorrection with 180cst -$4.32, 380cst -$4.38 and MGO -$0.50.

High premiums for prompt deliveries.

380 cst $501
180 cst $511
MDO $776

Fujairah (delivered indications 9/12)

380cst: $497
180cst: $535
MGO: $785

Rotterdam (delivered indications)

Yesterday (Only barge trade deals of >2 KT reported) In the MOC 34KT was traded between 466.75-473.00 with Chemoil and Koch as the main sellers to Gunvor as the main buyer.

This morning bids started at 471FE, 473BE and 474FW with no offers.

The NWE HSFO markets are well supplied, with the Russian influx underpinning the markets, outweighing the seven VLCC's reportedly fixed. 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 also still well supplied, with stored product entering the market and product arriving out of the US. The continuing cold weather however is lending some support

Indications for delivered bunkers:

380cst: $479
(1.5%): $491
180cst: $495
(1.5%): $507 (very low avails)
DMB: $n/A
MGO 0.1%S: $769