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Thursday morning, oil futures initially traded with a soft tendency but were able to pare their losses in the course of the morning. The strong euro - resp. the weak dollar - created some leeway up until the ECB took investors by surprise by lowering the benchmark interest rate to 1,25%. The Euro sharply declined on these news, whereas the dollar and other currencies profited from this decision. Positive US economic data (employment data, industrial orders and the ISM non-manufacturing index) caused optimism throughout the markets, equally supporting equities, the euro and oil futures. Greece's plans of a transitory government, which is to push through the bailout plan in parliament, likewise caused some relief among investors. While futures at ICE only breached their short term resistances, a buying impulsion was created at NYMEX after the WTI Crude's resistance at 93,80 dollars had been breached, supporting prices until late in the evening.

The stochastic indicator is bullish this morning for Gasoil, Brent and the WTI Crude, giving a clear buying signals to market participants. Resistances at 94,65 dollars for the WTI, at 111,00 dollars for the Brent and at 960,00 dollars for Gasoil have yet proved strong, however, limiting the upward potential. If these resistances are breached in the course of the day, technical analysts expect new bullish impetus as well as technical buying orders. Furthermore, the persistant situation of backwardation encouraging bullish tendencies. according to analysts. The WTI crude is supported at 91.00 dollars today, its first resistance is seen at 94.65 dollars. The Brent's first resistance is seen at 111.00 dollars, its first support is at 107.80 dollars.

ICE Gasoil contract for November delivery is expected to open $3,50-4,50 dollars up at about $960,00/MT after settling at 956,00 dollars Thursday night. This was 5,25 dollars below Wednesday's settlement. Volume with some 44.600 contracts was below average. .

The euro held on to its gains this morning testing its first resistance, after signs that Greece will forego plans to hold a referendum on its bailout package eased worries that the country could face a disorderly default. But any further gains are expected to be capped as few market players see an end any time soon to the euro zone's debt and financial crisis, with government bonds of Italy, Spain and even France trading with hefty spreads over German bonds. Greek Prime Minister George Papandreou, facing a revolt from his own party over his plan to call the referendum, is bracing for a knife-edge confidence vote on Friday while the main opposition party is calling for an early election. Sources said he bowed to cabinet rebels and agreed to step down and make way for a negotiated coalition government if his Socialists back him in a confidence vote on Friday. The euro had slipped slightly on Thursday after the ECB unexpectedly lowered key interest rates by a quarter percentage point to 1.25 percent, its first cut since May 2009, citing the euro zone's worsening debt crisis.

The euro last sold at 1,3848 dollar compared to 1,3811 Thursday night. It is supported at 1,3680 dollar, at 1,3655 dollar and at 1,3635 dollar. Resistances are seen at 1,3850 dollar, at 1,3875 dollar and at 1,39 dollar.

* The euro zone manufacturing PPI rose more than expected by 0.3% in September after a revised 0.2% drop in the previous month.
* The euro zone services PMI dropped to 46.4 in October after a reading of 48.8 in the previous month. Economists had expected the index at 47.2.
* The German services PMI dropped to 50.6 in October after a reading of 49.7 in the previous month. Economists had expected the index at 52.1.

U.S.

Nymex Access trading sideways: Oil prices have traded sideways in a narrow range during East Asia and Globex electronic trade this morning. In the early morning, oil futures had been able to retain last evening's gains. Their resistance lines currently still limit the upward potential. The traded volume is slightly below average. Traders look ahead to the opening of European stock markets, the results of the G 20 summit and European and American economic data.

Houston (ex-wharf indications 4-11)

380cst $660
180cst $710
MGO $995

Very tight avails for 180 cst

New Orleans (ex-wharf indications 4-11)

380cst $663
180cst $713
MGO $1000

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

Crude is gaining sharply after it was resolved that Greece would NOT go to referendum over the bailout, currently WTI is +$2.78. Singapore paper is reacting with +$13.20 for 180cst and +$12.90 for 380cst for Nov, and for Dec 180 cst +$14.00 and 380cst +$13.55 with MGO Nov contracts at +$3.15 and for Dec at +$3.15. The cargo market is not yet reacting with 180cst -$3.63, 380cst -$5.95 and MGO -$1.68.

The Singapore fuel oil markets fell more than -$3.50 during the Platts window yesterday despite the weak crude prices. Market continues to be very supported on strong buying interest narrowing the Asian fuel oil crack. The delivered bunker premium remained at around $17.00 above the cargo prices yesterday. Bunker fuel oil swaps gained app. $2.00/mt at the front and only a few cents at the backend of the forward curve both for Rtdam and Singapore papers.

High premiums for prompt deliveries.

380 cst $688
180 cst $698
MDO $945

Fujairah (delivered indications 4-11)

380cst $688
180cst $710
MGO $1040

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam

Indications for delivered bunkers:

380cst : $ 655
(1.0 %) :$ 668
180cst: $ 674
(1.0 %):$ 678
MGO 0.1%S: $ 974