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Oil prices gained this morning, but are not very volatile this afternoon. As hurricane Isaac has almost passed by now, and oil companies have sent their staff back to the platforms, investors hope that US production might reach the regular level in the next few days. They still wait for damages reports however, especially regarding the possible shut-downs of refineries in the South of the USA. Longterm shut-downs are not expected.

Oil futures have initially climbed on Thursday morning testing first resistance lines at ICE. The WTI crude has edged but slightly higher as market participants less and less considered the Isaac's bullish effect and the DOE's bearish data on oil inventories (published Wednesday) limited gains. The slightly stronger euro, resp. retreating dollar have favored oil futures' rise at that time. In the course of the evening selling pressure has increased, however. Weekly US employment data came out somewhat weaker than expected while market players seemed to realise that Ben Bernanke's speech in Jackson Hole this afternoon might not necessarily bring the highly anticipated hints on an intervention. Equities and the euro plummeted in late-afternoon trade making oil futures likewise lose some ground. The WTI's support at 94.00 dollars and the Brent's support at 112.30 have capped losses however.

ICE Gasoil contract for September delivery settled at 984.25 dollars on Thursday. This was 5.75 dollars above Wednesday's settlement. With some 36.400 contracts the traded volume was below average.

OPEC: According to some sources, the OPEC will trim crude exports by about one per cent this month as refiners in the U.S. and Europe halt plants for maintenance. Exports from OPEC are falling less the seasonal norm, reflecting strong demand in the U.S. and Europe.

The stochastic indicator is bearish at the WTI chart but bullish at the ICE charts. Thus the technical situation does not give any clear direction and is seen as neutral this morning. As markets will be predominated by the effects of Ben Bernanke's speech, the technical constellation is likely to be put into the background anyway.

U.S.

Nymex access gaining: Oil futures have proved nervous in East-Asia and on Globex electronic trading platform this morning. ICE futures seem slightly more volatile than the WTI futures but compared to yesterday they have hardly changed. They have only gained some ground after the opening of the European session. The traded volume is below average. Market participants today focus Ben Bernanke's speech in Jackson Hole.

Houston (ex-wharf indications 30-8)

380cst $658
180cst $698
MGO $1050

New Orleans (ex-wharf indications 30-8)

380cst $663
180cst $701
MGO $1055

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

Crude is slowing still with WTI -$0.24. Singapore paper is slowing, marginally gaining with +$0.70 for 180cst and +$0.45 for 380cst for Sep, and for Oct 180 cst +$0.60 and 380cst +$0.45 with MGO contracts Sep +$0.15 and Oct +$0.31. The cargo market is starting to reverse, gaining with 180cst +$8.17, 380cst +$6.00 and MGO +$1.07.

The Singapore fuel oil markets rebounded after the recent loss, up by $5.0- 6.5 during the morning Platts window yesterday. The latest heavy residual inventory showed a build of +1.0 mbbl to 17.3 mbbl after several weeks of draws. The delivered bunker premiums remained around $7.0- 8.5 above the cargo prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $670
180 cst $685
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up. Loading delays are less frequent, but some shortage is reported in Antwerp. 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 : $ 652
(1.0 %) :$ 715
180cst: $ 677
(1.0 %):$ 742
MGO 0.1%S: $986