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After innitial losses on US growth doubts, in a technical reaction and worries, ICE Brent and G.Oil have pulled back from their lows after having tested their first supports. Both contracts bounced back up to their first resistance lines at 990.00 dollars (G.Oil) and 114.85 dollars (Brent). The WTI crude is but slowly approaching its first resistance line.

Thursday morning, quotations at ICE and NYMEX have stuck to the steady tendency of the past few days during which optimism regarding renewed interventions by the Fed had supported oil prices. The strong euro has also made oil futures test their upward potential. There were still only few groundbreaking news and so market participants consolidated their positions on a high level until evening. At stock markets, there has already been some profit taking in the afternoon. Sentiment among investors at the financial market was dampened by sceptical comments by James Bullard, president of the St. Louis Fed, and by US presidential candidate Mitt Romney. Both of them think that another round of monetary easing is the wrong way. Bullard emphasised new interventions by the Fed were less likely than market participants were expecting. Accordingly, oil futures have lost ground in the course of the evening completely erasing their gains. Investors have taken some profit after the rise of prices the days before. When oil futures breached supports, further technical selling orders have been triggered and so quotations settled with considerable losses at night.

ICE Gasoil contract for September delivery settled at 995.50 dollars on Thursday. This was 10.50 dollars above Wednesday's settlement. With some 62,900 contracts the traded volume was above average.

The stochastic indicator gives a selling signal at ICE and NYMEX this morning, whereas the RSI still does not provide any bearish clues and remains in the overbought zone, see also technical analysis. Technical analysts thus assess the situation as slightly bearish. Up trends are still intact, however. Therefore currently only slight corrections - if any - within the trend channel are considered possible. If the RSI breaches its 70%-line, selling pressure might renewedly rise.

U.S.

Nymex access easing: Oil futures have hardly changed in East-Asia and on Globex electronic trading platform this morning. After the profit taking late yesterday evening oil futures consolidate on a lower level. Market participants will keep an eye on the development of the tropical storm Isaac that might become a bullish factor over the weekend. The traded volume is on average. Market participants now eye the performance of stock and forex markets, the negotiations between Greece and the euro zone leaders as well as Isaac's development. As to economic indicators, there is only the release of figures regarding durable goods orders on the agenda.

Houston (ex-wharf indications 23-8)

380cst $668
180cst $705
MGO $1040

New Orleans (ex-wharf indications 23-8)

380cst $675
180cst $711
MGO $1050

Singapore (correct as per 14:30hrs LT-delivered indications)

Crude is dropping with WTI -$2.39. Singapore paper is tracking Crude, losing with -$8.90 for 180cst and -$8.90 for 380cst for Sep, and for Oct 180 cst -$8.90 and 380cst -$8.50 with MGO contracts Sep -$1.04 and Oct -$1.09. The cargo market is not yet responding, gaining with 180cst +$12.55, 380cst +$12.10 and MGO +$1.85.

The Singapore fuel oil markets did not have much significant changes, mostly flattish from the previous during the morning Platts window. The continually persistent high outright prices were dampening demand in otherwise ample supplied market. The delivered bunker premiums were seen around $7.0 above cargo prices yesterday. Bunker fuel oil swaps gained up to $1/mt at the front of the forward curve. Backend was again slightly weaker, posting up to $1/mt losses. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $675
180 cst $685
MGO $980

Fujairah (delivered indications 24-8)

380cst $695
180cst $715
MGO $1040

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA prices eased somewhat, but not much demand survaces. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 656
(1.0 %) :$ 709
180cst: $ 671
(1.0 %):$ 735
MGO 0.1%S: $988