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Technical indicators: neutral

Oil prices were in a narrow lateral range thougout the day, mixed economic data from the USA did not influence the market much.

After the expected consolidation in electronic trading, oil prices rose yesterday during the session in New York after a much-higher-than-expected draw in US crude oil inventories as the DOE spurred hopes of rising oil demand in the world's number one energy user. Better-than-expected US economy data also lent support. The late rise of the dollar and the strong resistance line at 89.00 dollars for the WTI crude prevented more gains.

ICE gasoil Januari is expected to open 1.50 to 3.00 dollars down at about 766.00 dollars/ton after settling at 768.25 dollars (official settlement price) Wednesday night. This was 3.00 dollars above Tuesday's settlement. Volume with some 71.100 deals above average.

WTI crude had temporarily breached 87.10 dollar support yesterday, but traded volume being very thin at the time, technical buying orders helped the contract soon back up. The lateral trading range is intact. WTI crude is still seen in the range of 87.10 and 89.00 dollars. The RSI indicator is in neutral territory this morning, while the Stochastic gives a bullish signal. The first support for the WTI crude is seen at 86.80 dollars, the first resistance at 89.00 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. The WTI crude is trading below 89.00 dollars, well within the lateral trading range. No news in the markets. The traded volume is on average.

APIs: crude oil -
1.442; distillates +1.951, gasoline +2.415 million barrels vs previous week. Refinery utilization +/- 0.0%

DOEs: crude oil
-9.854; distillates +1.094, gasoline +0.809 million barrels vs previous week. Refinery utilization +0.5%

Forecasts: crude oil -2.7; distillates -0.3; gasoline +1.9 million barrels vs previous week. Refinery utilization: +0.9%

Houston (ex-wharf indications 15/12)

380 cst $490
180 cst $506
MDO $774

Very tight avails for 180 cst

New Orleans (ex wharf indications 15/12)

380 cst $493
180 cst $509
MDO $777

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

Crude is losing still, but slowing with WTI -$0.66. Singapore paper is jumping up, ignoring crude with Dec +$7.95 for 180 cst and +$8.10 for 380 cst, and for Jan 180 cst +$7.75 and 380cst +$8.10 with MGO Dec contracts at +$0.87 and for Jan at +$0.87. The cargo market is now also losing somewhat with 180cst -$1.48, 380cst -$2.71 and MGO -$0.82.

The Singapore fuel oil market slipped more than 1.5 usd on softer crude movements during the Platts window Yesterday. There is not much change to fundamentals and Brightoil is still buying both the physical and also the fuel oil swaps lending some support to the market. The delivered bunker premiums were 0.50 to 1.50 usd above cargo prices Yesterday.

High premiums for prompt deliveries.

380 cst $507
180 cst $517
MGO $775

Fujairah (delivered indications 16/12)

380cst: $507
180cst: $537
MGO: $795

Rotterdam (delivered indications)

Yesterday (Only barge trade deals of >2 KT reported) In the MOC 116KT was traded between 479.00-482.00 with Petroned again as the main seller to Gunvor and Koch as the main buyers.

The NWE HSFO markets are well supplied, with the Russian influx underpinning the markets. Still the fixed tonnage leaving for the Far East is not tipping the balance. Five VLCC's plus two Alfamax fixtures are reported for December loading. 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: $487
(1.5%): $490
180cst: $509
(1.5%): $514 (very low avails)
DMB: N/A
MGO 0.1%S: $774