---

Crude prices climbed to a four-month peak of $117.72 a barrel in earlier trade and by 0900 GMT was up $1.53 at $117.41. The global North Sea benchmark is on track to end the week up more than 2 %. U.S. crude raised from $1.46 to $99.77 a barrel after briefly hitting a four-month high of $99.64. It is set to close the week up 3%. The FOMC decision will certainly have a bullish impact on oil prices even though some analysts had hoped for even more extensive measures. But then the discussion on a release of oil from the strategic reserves could be revived as a consequence.

Oil prices traded in a narrow range in London and New York Thursday morning, oscillating around their first supports as investors stayed cautious ahead of the FOMC decision. When the statistics showed in the afternoon that US initial jobless claims rose more than expected last week, oil prices jumped on hopes that the Fed would definitely announce fresh stimulus measures. Technically driven buying orders were triggered when first resistance lines were breached, accelerating the price increase. Solid resistances at 1.015,00 dollars (gasoil) and at 98,50 dollars (WTI) then limited the gains as traders were too cautious to accumulate more long positions ahead of the Fed and took some profit instead. When the FOMC announced its decision to support the economy market volatility increased and oil settled slightly higher in the end.

FOMC : In its Thursday announcement the FOMC said it would buy 40 billion dollars each month of agency mortgage-backed securities on an open-ended basis, and said it would extend those purchases and buy additional assets if the jobs market doesn't improve. Interest rates are to stay at their record low of zero to 0,25% and operation "Twist" is being prolonged as the FED lowered its expectations for growth this year.

OPEC: Global oil demand is poised to be depressed for the next 18 months while supply levels from OPEC countries are at fairly comfortable levels, the West's energy agency the IEA said. The IEA said it made no significant changes to its global oil demand outlook and forecast demand would grow at a steady rate of around 0.8 million barrels per day (bpd) or 0.9% in both 2012 and 2013. Some analysts said the oil demand outlook would probably be marked down by the IEA in the future.

ICE Gasoil contract for October delivery settled at 1.004,50 dollars on Thursday. This was 0,25 dollars below Wednesday's settlement. With some 87,600 contracts the traded volume was well above average.

The Stochastic oscillator remains in bullish territory at the NYMEX charts while it is neutral at the ICE, its two lines converging. The short-term uptrend is still intact so that there is more upside seen to prices today. The market is somewhat overbought which would trigger a downward correction in case that any fresh bearish news would hit the market, but so far there are none in sight. The bullish fundamentals will stay in the centre of attention so that the technical constellation will not have much influence today.

U.S.

Nymex access bullish : Oil futures are rising strongly on Globex electronic trading platform this morning, supported by dollar weakness and Wall Street’s strong performance on Thursday. The traded volume is well above average. The market players’ eye stock, forex markets as well as today's economic indicators.

Houston (ex-wharf indications 13-9)

380cst $680
180cst $716
MGO $1070

New Orleans (ex-wharf indications 13-9)

380cst $683
180cst $719
MGO $1079

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

Crude is rising with WTI +$2.70. Singapore paper is bullish with +$10.05 for 180cst and +$8.50 for 380cst for Sep, and for Oct 180 cst +$11.75 and 380cst +$9.70 with MGO contracts Sep +$1.75 and Oct +$1.93. The cargo market is dropping, receding with 180cst -$1.65, 380cst -$2.52 and MGO -$0.09.

The Singapore fuel oil markets fell more than -$1.5 during the morning Platts window yesterday erasing previous day gains. The latest heavy residual inventory reported a slight build of +0.5 mbbl to 18.94 mbbl. The delivered bunker premiums were ranging from $7.0 to $8.5 above cargo prices. Singapore 380cst cargo FOB gained app.$2.5/mt at the front and a dollar less at the backend of the forward curve. This morning the market is trading higher.

High premiums for prompt deliveries.

380 cst $695
180 cst $710
MGO $1000

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up. Supply had tightened due to maintenance at the Flushing Zeeland refinery. 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 : $ 676
(1.0 %) :$ 735
180cst: $ 692
(1.0 %):$ 760
MGO 0.1%S: $1010