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Technical indicators: neutral to bullish

Oil prices considerably advanced in the morning, even breaching some resistance lines at ICE. Ahead of US employment data, market participants do not expect any more upward potential however. The oil complex has been supported by the dollar's temporary dip and European stock exchanges, which showed a strong performance at the opening. Currently prices are coming back from their intraday highs on a recovering dollar. Insecurities regarding the meeting of the Federal Reserve Bank on Friday leave the dollar volatile.

After easing in electronic morning trading, oil futures rose ahead of the opening of NYMEX floor session, breaching first resistance lines in the process. The rise in US durable goods orders helped lift market sentiment. Prices only lost temporary ground after the release of the DOE data and, breaching more resistance lines short after, reached new intraday highs. But prices suddenly turned lower during the last minutes of floor trading, and the selling intensified toward the close. Analysts expressed surprise at the sudden selloff and said automatic selling orders may have been behind the pull-back, likely exacerbated by thin trading volumes, which can exaggerate the impact of individual trades.

ICE gasoil for September delivery settled at 942.25 dollars on Wednesday. This was 11.50 dollars above Tuesday's settlement. With some 67,700 contracts the traded volume was above average.

The stochastic indicator at the NYMEX and ICE charts remains bullish also this morning, while the RSI is not yet giving any clear signals. After more resistance lines were breached Wednesday, the short-term technical uptrend has become stronger. The constellation still gives room for some more technical buying, so analysts. The first support for the WTI crude is seen at 84.55 dollars, its first resistance at 86.60 dollars. The Brent's first resistance is seen at 111.00 dollars, its first support is at 108.70 dollars.

U.S.

Nymex Access losing: Oil futures lost some ground in East Asia and Globex electronic trading this morning before consolidating in a narrow range. Some profit taking seen. The traded volume is below average. Investors anticipate the release of US unemployment figures later today.

APIs: crude oil -3.3; distillates +2.0; gasoline +6.4 million barrels vs previous week. Refinery utilization +1.8%

DOE's: crude oil -2.2; distillates +1.7; gasoline +1.4 million barrels vs previous week. Refinery utilization +1.2%

Forecasts: crude oil +0.7; distillates +0.5; gasoline -1.0 million barrels vs previous week.

Houston (ex-wharf indications 24-8)

380 cst $627
180 cst $663
MDO $954

New Orleans (ex wharf indications 24-8)

380 cst $629
180 cst $665
MDO $956

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

Crude is bouncing up slightly with WTI +$0.50. Singapore paper is slowing as well with +$6.80 for 180cst and +$6.25 for 380cst for Sep, and for Oct 180 cst +$6.65 and +$6.70 for 180cst with MGO Sept contracts at +$1.65 and for Oct at +$1.63. The cargo market is slowing, gaining still with 180cst +$3.80, 380cst +$4.62 and MGO +$0.04.

The Singapore fuel oil markets edged higher by more than $4.0 during the Platts window yesterday. Buying interest has been strong, narrowing the Asian fuel oil crack. The delivered bunker premiums were app. $8.00 above cargo prices yesterday. This morning both markets are trading higher .

High premiums for prompt deliveries.

380 cst $656
180 cst $662
MDO $915

Fujairah (delivered indications 25-8)

380 cst $661
180 cst $683
MDO $1061

Rotterdam

Indications for delivered bunkers:

380cst : $ 635
(1.0 %) :$ 666
180cst: $ 672
(1.0 %):$ 708
MGO 0.1%S: $ 955