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Oil prices have traded higher during morning trade, breaching first resistance lines. Traders now expect new impulsions from US economic data to be published in the afternoon.

Oil futures in London and New York initially traded with a steady tendency yesterday. The bullish technical and fundamental constellation boyed upward movements, that were also supported by an advancing euro and gaining equities. The high volume of the EBC's 3-year tender caused some optimism among forex traders that the European bank may take a more active part in the resolution of the debt crisis. The high level lead to some technical profit taking, however, before market players started to focalise on the DOE's data in the afternoon. The latter were interpreted as clearly bullish given the massive draws and triggered new buying impetus. Oil futures breached some resistances and finished with considerable gains.

ICE Gasoil contract for January delivery settled at 910.50 dollars on Wednesday. This was +8.25 dollars above Tuesday's settlement. With some 44.500 contracts the traded volume was below average.

The Stochastic indicator remains bullish in the charts for ICE and NYMEX, whereas the RSI is on a neutral level. Despite of the bullish stochastic, analysts assess the situation as rather neutral. The indicator supported prices but given Tuesday's and Wednesdays rallies the biggest part of the basic buying impetus should have vanished already. Prices might hardly reach yesterday's highs. Market participants could seize the opportunity of some profit taking in the morning liquidating yesterday's long positions. Ahead of Christmas, riskier positions are reduced as investors want to start the weekend on a neutral basis. Analysts thus expect an even lower volume as at the beginning of this week.

U.S.

Nymex acces gaining. Oil futures retreat in East Asia on Globex electronic trading platform this morning. Market participants liquidate some of yesterday's long positions. The traded volume is slightly below average. Investors eye the opening of European markets and today's economic data.

API's: Crude oil -4.6; distillates -2.8; gasoline -0.4 million barrels vs previous week. Refinery utilization -2.1%
DOE's; Crude oil -10.6; disitllates -2.4; gasoline -.04 million barrels vs previous week. Refinery utilization -0.2%
Forecasts: Crude oil -2.8; distillates -0.5; gasoline +0.4 million barrels vs previous week

Houston (ex-wharf indications 21-12)

380cst $628
180cst $664
MGO $956

Very tight avails for 180 cst

New Orleans (ex-wharf indications 21-12)

380cst $631
180cst $667
MGO $95

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

Crude is gaining still with WTI +$1.07. Singapore paper is slowing with +$0.80 for 180cst and +$2.50 for 380cst for Jan, and for Feb 180 cst +$0.75 and 380cst +$2.55 with MGO Jan contracts at +$0.50 and for Feb +$0.48. The cargo market is fully adopting the bullishness with 180cst +$11.09, 380cst +$11.63 and MGO +$2.69.

The Singapore fuel oil markets extended another day of rally up more than $11.0 during the Platts window. The delivered bunker premiums remains around $22.5 above cargo prices as sellers were thin going into year-end to reduce holding inventory. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $678
180 cst $685
MGO $930

ARA (Amsterdam - Rotterdam - Antwerp)

High and low sulfur bunker fuel values in the main Northwest European ports firmed over $10-15/mt day-on-day Tuesday, following stronger sentiment on the 3.5% Fob Rotterdam barges based on surging oil prices and some surfacing demand of shipowners being keen to stem before the Christmas holidays. HSFO supplies for prompt in Rotterdam and Antwerp remained tight with some suppliers fully booked up and during the Christmas holidays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 624
(1.0 %) :$ 669
180cst: $ 639
(1.0 %):$ 687
MGO 0.1%S: $918