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Oil futures traded higher in the morning, after first resistances had been breached. When oil prices climbed even higher, further buying orders were triggered. Gaining equities added to the bullish technical analysis. The latter has shown an up trend during the past few days. Currently, oil prices are pulling back from their intraday highs.

Yesterday, Oil prices traded restrainedly at ICE and NYMEX initially in the morning, as market players looked ahead to the DOE's oil inventories data, published Thursday afternoon. After the ECB's pessimistic outlook regarding economic growth and the disappointing growth forecast for Germanyequities as well as the euro retreated considerably until the afternoon. Some selling impetus provided by the stochastic indicator made way for the WTI crude's and the Brent's downward corrections in the morning. Thus both futures traded lower. China's decreasing crude imports (-12.2% in September) additionally weighed on oil prices, whereas profit taking was mainly focussed on crude oil futures. On the one hand, because ICE Gasoil and NYMEX Heating Oil were still lacking technical selling impetus at that time and on the other hand because scarcity prevents larger downward corrections. The DOE's data were seen as bullish all in all, even though crude oil stocks slightly rose. Surprisingly high draws in oil products rendered possible some upward potential. While the Brent and the WTI crude were able to trim their losses by the end of the session, oil products started to surge in the evening, reaching new highs within their sharp up trend. The euro also recovered in the evening, after Slovakia agreed to the strengthening of the EFSF, as was expected.

ICE Gasoil contract for October delivery settled at 920.75 dollars on Thursday. This was 2.25 dollars above Wednesday's settlement. With some 107,200 contracts the traded volume was well above average.

The Stochastic indicator at the WTI and brent charts is giving a selling signal while the one at the gasoil chart is still neutral. The RSI is in the overbought level at all charts. Only if prices succeed in breaching the lower limits of the strong short-term uptrend channel an extensive downward correction will be triggered, so technical analysts. But as market participants will be cautious ahead of the release of the DOE data in the afternoon, a consolidation on the current high level is more likely. The WTI crude is supported at 84.50 dollars today, its first resistance is seen at 86.60 dollars. The Brent's first resistance is seen at 113.00 dollars, its first support is at 111.00 dollars.

U.S.

Nymex Access gaining. Oil futures are trading sideways in a tight range in East Asia and Globex electronic trading this morning, receiving impetus from the euro/dollar-parity. Spain's downgrade seems to have no larger effect on prices. The traded volume is about on average. Market participants look ahead to the publication of the US' retail sales figures, consumer sentiment and business inventories, all due in the afternoon.

API's: Crude oil -3.8; distillates -3.1; gasoline -1.2 million barrels vs previous week. Refinery utilization -1.5%
DOE's; Crude oil +1.3; distillates -2.9; gasoline -4.1 million barrels vs previous week. Refinery utilization -3.5%
Forecasts: Crude oil -0.8; distillates -0.8; gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 13-10)

380cst $645
180cst $690
MGO $938

Very tight avails for 180 cst

New Orleans (ex-wharf indications 13-10)

380cst $648
180cst $692
MGO $941

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

Crude is back on its bullish track, gaining with WTI +$0.84 Singapore paper is mirroring crude, gaining with +$5.25 for 180cst and +$5.20 for 380cst for Oct, and for Nov 180 cst +$5.25 and 380cst +$5.25 with MGO Oct contracts at +$2.19 and for Nov at +$2.00. The cargo market is tracking crude and pater with 180cst +$2.58, 380cst +$3.58 and MGO +$0.53.

The Singapore heavy residual inventory saw a slight draw to -0.2 mbbl to 16.84 mbbl. Market is expected see additional incoming volumes forward. The delivered bunker premiums softened to around $15.0 above the cargo prices yesterday.

Bunker fuel swaps lost more than $6/mt yesterday along the curve. Markets are trading higher today pricing in an advance in crude over night.

High premiums for prompt deliveries.

380 cst $665
180 cst $673
MDO $900

Fujairah (delivered indications 14-10)

380cst $665
180cst $682
MGO $1050

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market saw average levels of liquidity Thursday on weaker FOB Rotterdam barges prompted by a more than $1/barrel drop in Brent crude. Oil prices were under pressure from falling capital markets, a weaker US dollar and the US EIA data that showed a build in commercial stocks. HSFO availability was still tight with several suppliers reporting fully booked schedules. Very short HSFO supplies continued to cause operational delays, with some vessels waiting at Vopak’s loading installations for three to five days. In the MOC 1% was traded at $ 644-651 with hs $ 627-635 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 649
(1.0 %) :$ 665
180cst: $ 663
(1.0 %):$ 681
MGO 0.1%S: $ 963