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Oil futures gain as the euro strengthened against the dollar after better-than-expected German unemployment figures and on expectations of a positive result in the German vote on the expansion of the euro-zone rescue fund.

Yesterday, After a rather quiet day with oil prices moving more or less in a lateral range, tracking the euro and equity markets, the complex collapsed last night in New York and in Asian trading this morning as worries over approval for the Eurozone's expanded rescue fund and Greece's ability to qualify for its next aid package prompted investors to sell risky assets. Wall Street tumbled after a positive opening and European equity markets settled lower when market participants fled shares and commodities and seeked the save-haven dollar for rescue. When first support lines were breached, technically driven selling orders accelerated the late sell-off. US petroleum inventories had no influence on oil prices last night, the build in crude and gasoline stocks counteracting a draw in Cushing inventories that are now 26.2% below an annual high hit in April.

ICE Gasoil contract for October delivery settled at 907.50 dollars on Wednesday. This was 0.75 dollars above Wednesday's settlement. With some 57,400 contracts the traded volume was about on average.

The Stochastic indicator is still in bullish mode at all charts this morning, but its two lines have converged. The influence of the indicator on the actual market situation has become minor as market participants will watch closely the movements of the euro/dollar course for direction, the European debt crisis still being in the center of speculators' attention. As for today, analysts expect a technical reaction to yesterday's selloff, the more as the RSI indicator is in the oversold level. Still, the near-term outlook remains negative. The WTI crude is supported at 79.65 dollars today, its first resistance is seen at 84.00 dollars. The Brent's first resistance is seen at 105.85 dollars, its first support is at 101.85 dollars.

U.S.

Nymex Access gaining: Oil futures trade higher in East Asiaand Globex electronic trade this morning in a technical reaction to Wednesday's hefty selloff and weighed down by a weaker dollar/stronger euro as worries over the Eurozone crisis persist. The traded volume is well above average. Investors will set focus today on the euro/dollar parity and a string of important euro zone and US indicators to be released later on.

API's: Crude oil +0.6; distillates -0.2; gasoline +4.6 million barrels vs previous week. Refinery utilization +1.5%
DOE's; Crude oil +2.0; distillates +0.1; gasoline +0.8 million barrels vs previous week. Refinery utilization -0.5%
Forecasts: Crude oil -0.1; distillates +0.7; gasoline +1.1 million barrels vs previous week.

Houston (ex-wharf indications 28-9)

380cst $624
180cst $669
MGO $918

Very tight avails for 180 cst

New Orleans (ex-wharf indications 28-9)

380cst $626
180cst $672
MGO $921
Singapore (correct as of 1430hrs LT - delivered indications)

Crude is back on its bearish track, losing with WTI -$1.51 Singapore paper is mixed with -$0.25 for 180cst and +$0.45 for 380cst for Oct, and for Nov 180 cst -$0.25 and 380cst +$0.45 with MGO Oct contracts at +$0.94 and for Nov at +$0.82. The cargo market is slowing with 180cst +$4.38, 380cst +$4.25 and MGO +$1.37.

The Singapore fuel oil markets gain around $4.25 during the Platts window tracking the volatile crude prices. The supplies are expected to be getting tighter as lack of on spec bunker grade products in the market. The delivered bunker premiums remains at $16.00 above cargo prices yesterday. Bunker fuel oil swaps gained app. $1.00 at the front and lost nearly $2.00 at the backend of the forward curve. This morning both markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $640
180 cst $650
MDO $912

Fujairah (delivered indications 29-9)

380cst $650
180cst $660
MGO $1070

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The Demand in the Northwest European market is still supported by stronger bunker fuel oil values that tracked a $2/barrel rise in ICE Brent for November delivery, sources said. Bullish sentiment on the oil market was supported by some hopes that a Eurozone rescue plan could be found, following talks by G20 leaders and the International Monetary Fund. Rotterdamsaw healthy levels of trading with some buyers keen to secure some volumes on firming fuel oil prices and ongoing high sulfur fuel oil shortages. In the MOC 1% 629 were the levels traded, with hs 609-613 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 614
(1.0 %) :$ 638
180cst: $ 634
(1.0 %):$ 661
MGO 0.1%S: $ 910