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The price of oil recouped some lost ground Thursday, a day after its biggest decline of the year. Benchmark crude for December delivery was up 69 cents to $85.13 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $4.27, or 5 %, to finish at $84.44 per barrel in New York. It was the lowest price since July 10.

On Tuesday, oil prices at ICE and NYMEX still sharply climbed, even though analysts could not find any fundamental reasons for the rise that amounted to some 4.1% for the WTI. On Wednesday morning, after the result of the US elections, oil futures nevertheless consolidated on a high level until, in the course of the day, the bearish impacts prevailed. First, the euro was sent lower by weak economic data and forecasts, and then equities followed. The euphoria caused by Obama's re-election has been put into the background by the worries regarding the European economic growth and the fears of the fiscal cliff that might hit the USA in January. Profit taking from the euro and equities have also affected oil markets, where market participants also cut their speculative long positions after the API's data, published Tuesday night, indicated that the change in US oil inventories might come out more bearish than expected. As this was the case, selling pressure renewably rose in late-afternoon trade. In all, losses outweighed Tuesday's gains and at its lowest the WTI crude lost some 4.9% compared to the beginning of the session. The Brent temporarily declined by 3.9% and the Gasoil by 3.1%. Only at the end of NYMEX floor trade has the drop been stopped and quotations settled near their lows.

ICE Gasoil contract for November delivery settled at 931.00 dollars on Wednesday. This was 6.00 dollars below Tuesday's settlement. With some 36,900 deals the traded volume was below average.

The stochastic indicator is still neutral at the ICE charts this morning, whereas the indicator's lines seem to cross at the WTI chart which gives a first selling signal. Given the long-term down-trend of the WTI crude, technical analysts take a rather bearish stance. New selling signals currently seem more likely than new buying signals.

U.S.

Nymex Access rising: Oil prices have traded higher in East-Asia and on Globex electronic trading platform this morning after yesterday's decline. According to analysts, this has been a technical reaction. Moreover some investors were cutting their short positions. The traded volume is far above average. Investors now eye the performance of stock markets and new clues from forex trade. Moreover they are looking ahead to some economic indicators.

API: Crude Oil +0.0; distillates +0.2; gasoline +1.4 million barrels vs previous week
DOE: Crude Oil +1.8; distilates +0.1; gasoline +2.9 million barrels vs previous week
Survey: Crude Oil +1.7; distillates -1.6; gasoline -1.3 million barrels vs previous week

Houston (ex-wharf indications 07-11)

380cst $604
180cst $710
MGO $1013

New Orleans (ex-wharf indications 07-11)

380cst $602
180cst $703
MGO $1020

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is retreating with WTI -$3.33. Singapore paper is bearish, dropping with -$17.50 for 180cst and -$17.00 for 380cst for Nov, and for Dec 180 cst -$17.25 and 380cst -$17.75 with MGO Nov contracts at -$3.40 and for Dec at -$3.20. The cargo market is bullish with 180cst +$18.29, 380cst +$16.09 and MGO +$2.70.

The Singapore fuel oil markets surged up more than $16.0 during the morning Platts window yesterday tracking the crude movement. However, the softer fundamentals of weaker demand and ample supply continued to weaken the market. The delivered bunker premiums were ranging $2.0 -5.5 above cargo prices yesterday. This morning the market is trading down.

High premiums for prompt deliveries.

380 cst $600
180 cst $610
MDO $910

ARA (Amsterdam - Rotterdam - Antwerp)

Although there are still a lot of waiting times at the loadinginstallations for HSFO, the avails for HSFO and LSFO are good.

Indications for delivered bunkers:

380cst : $ 582
(1.0 %) :$ 616
180cst: $ 654
(1.0 %):$ 690
MGO 0.1%S: $ 920