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Crude prices edged above $90 a barrel on Thursday and were on track to snap three straight days of losses, supported by short-covering and data that showed an unexpected drop in U.S. crude inventory. NYMEX crude for November delivery was up 35 cents at $90.33 a barrel by 0039 GMT, after settling down $1.39 at $89.98 on Wednesday, its lowest settlement since Aug. 2, amid concerns about global economic growth. The contract fell as low as $88.95 on Wednesday, the lowest intraday price since $87.23 on Aug. 3.

Strong resistance lines, a retreating euro, weaker equities and the slightly bearish fundamental situation favoured some profit taking at ICE and NYMEX on Wednesday morning, whereas first supports remained strong until noon. In the early afternoon, selling pressure finally prevailed, however. After supports were breached there have been more technical selling orders. In the course of the afternoon, trade remained rather nervous and oil futures proved very volatile ahead of the DOE's data. Economic indicators did not have any greater impact on oil prices. Despite the bullish draw in crude oil and product stocks, oil futures saw a correction down shortly after the release of the DOE's data. Only later in the evening have they regained some ground. The rebound was in part due to an explosion at the Saint John refinery in New Brunswick, Canada. During late trade, oil futures in London and New York thus pared their losses. Only the WTI crude has but moderately climbed, settling with losses.

News: The futures rose sharply following news of an explosion at the 300,000 bpd Irving refinery in Canada. However, according to the company only one person was injured and production is unaffected.

OPEC: While in 2008 the collaboration between the OPEC and Russia did not prove to be fruitful, both parties have resumed talks regarding a possible cooperation. Russia's energy minister Alexander Novak and the secretary general of the cartel, Abdalla Salem el-Badri, have thus recently met in Vienna. In the statements following the talks, both stressed the necessity of stable and predictable markets - for the oil industry as well as for the global economy. The cooperation is said to focus on the creation of a conjoint working group to exchange information and analyse the oil market.

ICE Gasoil contract for October delivery settled at 962.25 dollars on Wednesday. This was 15.00 dollars above Tuesday's settlement. With some 60,700 contracts the traded volume was slightly above average.

The lines of the stochastic indicator have already met at the G.Oil chart and might give a selling signal if they cross. At the WTI charts a steep downward movement shows, whereas the stochastic indicator that is in the overbought zone does not yet give any clear signal. Given the possible selling signals at ICE and the possible buying signals for the WTI crude, technical analysts still assess the situation as neutral.

U.S.

Nymex access improving : Oil futures have consolidated on a high level in early Asian trading and on Globex electronic trading platform this morning after last night’s fluctuations. Recently they have tested their first resistance lines. The traded volume is slightly above average. Market players look ahead to the performance of stock and forex markets today, as well as a string of economic indicators.

API's: Crude oil +0.3; distillates +1.0; gasoline +0.3 million barrels vs previous week. Refinery utilization +0.2%
DOE's; Crude oil -2.4; distillates -0.5; gasoline -0.5; refinery utilization -1.5%
Forecasts: Crude il +1.6; distillates +1.0; gasoline +0.3 million barrels vs previous week.

Houston (ex-wharf indications 26-9)

380cst $633
180cst $688
MGO $1040

New Orleans (ex-wharf indications 26-9)

380cst $648
180cst $698
MGO $1050

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

Crude is bearish with WTI -$0.29. Singapore paper is continuing it downward trend with -$3.20 for 180cst and -$2.25 for 380cst for Oct, and for Nov 180 cst -$3.15 and 380cst -$2.70 with MGO contracts Oct +$0.20 and Nov +$0.18. The cargo market is falling with 180cst -$7.56, 380cst -$7.41 and MGO -$1.02.

The Singapore fuel oil markets came off around -$7.5 during the morning window yesterday tracking crude movements. The demand was said to be slightly below average despite the lower outright prices and delivered bunker premiums remained around $7.5 above cargo prices. Bunker fuel oil swaps lost app.$8.50/mt at the front and nearly $5/mt at the back end of the forward curve for Singapore papers. Viscosity spread between 180cst and 380cst papers shrank again, trading below $13/mt at the front of the forward curve. This morning the market is trading higher.

High premiums for prompt deliveries.

380 cst $645
180 cst $658
MGO $950

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA region is well supplied, with some demand picking up, although Suppliers in Rotterdam continued to experience some difficulties to meet low sulfur fuel oil inquiries for prompt due to ongoing supply shortages in the area. 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 : $ 633
(1.0 %) :$ 679
180cst: $ 658
(1.0 %):$ 735
MGO 0.1%S: $956