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Oil futures rose in the early morning, with ICE Gasoil breaching its first resistance line. Little later they came back from their highs on a temporarily retreating euro and some profit taking. Meanwhile oil prices have gained some ground again. The market is rather volatile, although investors still hope that a comprehensive solution for the eurozones debt crisis will be found during the EU's summit. Moreover, market participants eye the publication of the DOE's data, due at 4 p.m.this afternoon.

The EU summit’s resolutions have a positive effect on financial markets. The oil complex thus profits from an increasing risk appetite. The measures on which EU leaders agreed during the summit have been discussed beforehand already, so the results for the most part appear to be merely a confirmation of previous expectations. Analysts say, the mere fact that the members of the summit found some agreement can be regarded as progress. Now the focus should be on the details, however, as it is still unclear, how the procedures to recapitalise banks will look like.

Yesterday's thin trade reflected market participants' insecurities. Investors were waiting for the results from the EU summit. Until the early afternoon, oil futures traded in a rather tight range at ICE and NYMEX. The euro, sliding 1.5 cent, and retreating equities triggered a downward correction throughout the oil complex. Risk aversion was high, leading to some profit taking at that time, an analyst claimed. The DOE's data, published at 4.30 p.m., showing buil ds in crude oil but draws in products caused slightly diverging reactions. On the whole, the unexpected builds in crude oil weighed on prices, so that first supports were breached. In the evening, oil futures fell to new lows on technical selling. The WTI crude's psychologically important mark of 90 dollars proved strong, however. As negotiations proved rather tedious the results of the EU summit were only published at night. Investors reacted positively on these results. In consequence, the Japanese Nikkei, the euro and oil futures have already pared some of yesterday's losses.

ICE Gasoil contract for November delivery settled at 954.00 dollars on Wednesday. This was 3.00 dollars below Tuesday's settlement. With some 46,500 contracts the traded volume was slightly below average.

While the Stochastic indicator is slightly bearish for ICE Brent and NYMEX Crude Oil this morning, it does not show any impetus regarding ICE Gasoil yet. Technical analysts assess the current situation as neutral, however, as long as oil prices remain within their technical range. The sideway channels for the Brent and the Gasoil are still intact, whereas NYMEX Crude Oil moves within its given up trend. Lasting impetus would only be created, if oil futures left their range. The WTI crude is supported at 90.00 dollars today, its first resistance is seen at 93.20 dollars. The Brent's first resistance is seen at 111.40 dollars, its first support is at 108.75 dollars.

U.S.

Nymex Access gaining. Oil futures gain considerable ground in East Asia and Globex electronic trade this morning. After investors took some profit yesterday afternoon and yesterday evening, oil prices pare some of their losses. Market players regard advancing stocks and the strong euro resp. the weak dollar as main impetus. Risk appetite has increased after the EU summit brought about a concrete package of measures to tackle the Euro zone's debt crisis. The traded volume is slightly above average. Traders' main focus today will be on the opening of European and US stock markets and today's economic indicators, due this afternoon.

API's: Crude Oil +2.7; distillates -1.8; gasoline +0.2 million barrels vs previous week. Refinery utilization -0.2%
DOE's: Crude Oil +4.7; distillates -4.3; gasoline -1.4 million barrels vs previous week. Refinery utilization +1.7%
Forecasts: Crude oil +0.5; distillates -1.7; gasoline -1.3 million barrels vs previous week

Houston (ex-wharf indications 26-10)

380cst $646
180cst $698
MGO $973

Very tight avails for 180 cst

New Orleans (ex-wharf indications 26-10)

380cst $648
180cst $701
MGO $976

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

The Singapore fuel oil markets were closed on public holiday yesterday and reopen today. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $684
180 cst $693
MDO $935

ARA (Amsterdam - Rotterdam - Antwerp)

Sentiment in Northwest European bunker market was mixed Wednesday as crude futures fell lower in the afternoon with buyers and sellers waiting for the outcome of the EU summit. Rotterdam and Antwerp continue to see limited HSFO availability and ongoing congestion at loading installations. Hsfo product remains tight, some suppliers are fully booked until Thursday, with vessels experiencing operational delays due to congestion at loading installations.

Rotterdam

Indications for delivered bunkers:

380cst : $ 647
(1.0 %) :$ 659
180cst: $ 666
(1.0 %):$ 680
MGO 0.1%S: $ 965