---

Crude oil is trading lower today near 85.16 heading for its second week of decline within a month. Crude oil dropped before the US government releases the quarterly report which estimates that the US economy expanded by 1.9% in the third quarter.

After the losses they have marked during the past few days, oil futures at ICE and NYMEX have slightly consolidated on Thursday. In the course of the morning, quotations gained some ground on a technical counter-reaction that was favoured by the stochastic indicator's buying signal at ICE charts. First short-term resistance lines have been breached but the rather bearish market fundamentals have hampered a sustainable upward correction. Since the dollar recovered in the course of the day, forex trade prompted investors to take some profit from their long positions in oil-futures. The latter nearly pared their gains in the afternoon and evening. The restart of the Buzzard oil field in the North Sea brought more bearish clues. Since production will only reach full capacity in about a week, the downside provided by this news was limited, however. The US economic data published in the afternoon exceeded expectations but failed to push oil futures in the one or the other direction, as their bullish impact has been outweighed by the bearish impact from forex trade.

OPEC: OPEC oil transported by seaway is to rise by some 200,000 barrels per day in the four weeks until November 10, according to the UK-based Oil Movements.

ICE Gasoil contract for November delivery settled at 958.00 dollars on Thursday. This was 1.00 dollars above Wednesday's settlement. With some 52,400 deals the traded volume was on average.

The stochastic indicator still remains slightly bullish this morning at ICE charts, whereas the indicator is still neutral at the WTI chart. The stochastic and the RSI still point to a clearly oversold market which speaks for a phase of technical consolidation. Analysts thus still interpret the technical situation as neutral to bullish, whereas they also highlight that the stochastic’s buying signal has lost nearly all of its impact after yesterday's upward reaction.

U.S.

Nymex access dropping: Oil prices have already retreated again in East-Asia and on Globex electronic trading platform this morning approaching yesterday's lows. The euro remains softer this morning, after having declined yesterday, still pressuring oil futures. The traded volume is slightly above average. Investors now eye the performance of stock and forex markets today and some economic indicators.

Houston (ex-wharf indications 25-10)

380cst $625
180cst $680
MGO $1010

New Orleans (ex-wharf indications 25-10)

380cst $620
180cst $682
MGO $1000

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

Crude is neutral with WTI +$0.06. Singapore paper is stable with +$0.50 for 180cst and +$1.00 for 380cst for Oct, and for Nov 180 cst +$0.55 and 380cst +$1.00 with MGO contracts Oct +$0.55 and Nov +$0.57 The cargo market is bearish with 180 cst -$7.85 380cst -$6.37 and MGO -$0.89.

The Singapore fuel oil markets were flattish, ranging between -$0.50 to +$1.00 during the Platts window yesterday tracking the sluggish crude values. Demand in the area was described as below average and avails were good. Bunker fuel oil swaps lost app.$2/mt at the front of the forward curve for the Singapore papers. The backend was slightly stronger, posting only a few cents loss. This morning the market is trading up.

Singapore market closed for today

380 cst $630
180 cst $640
MGO $920

ARA (Amsterdam - Rotterdam - Antwerp)

High and low sulphur fuel oil loadings in Rotterdam remained hindered by ongoing operational delays at loading installations. The nearest bunker hub of Antwerp reported good operations and good product availability, even after a computer malfunction in loadinginstallation in Flushing.

Rotterdam

Indications for delivered bunkers:

380cst : $ 602
(1.0 %) :$ 636
180cst: $ 638
(1.0 %):$ 672
MGO 0.1%S: $980