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Oil rose above $108 a barrel as a showdown between Israel and the Palestinians stoked worries about supply, but ample stockpiles supplies and concern about the well-being of the global economy kept gains in check. Brent crude gained 13 cents to $108.14 a barrel by 1148 GMT. U.S. oil slipped 26 cents to $85.19.

Oil futures at ICE and NYMEX edged slightly higher on Thursday morning profiting from the stochastic indicator's buying signals, the steadier euro and the exacerbating conflict in the Near East. Upward potential was capped, however, by disappointing economic data out of Europe and later also out of the USA which had triggered some profit taking even before the release of the DOE's data at 5 p.m.. Later in the afternoon the decline had started when the Philadelphia Fed manufacturing index came out far worse than expected. The DOE's data on US oil inventories have not had any immediate effects that have made oil futures significantly oscillate. Still, oil futures briefly stopped declining. In late trade, oil prices took another dive then. Analysts say, this was chiefly due to a technical correction - as prices had breached their short-term technical triangle on Wednesday which triggered more buying orders. This development has created some potential for profit taking which investors carried out yesterday evening. Market sentiment was still rather bearish given the sufficient supply and the low demand. Even though oil futures settled with losses yesterday, they stuck to their consolidation sideways, that was limited by the marks of 84.05 and 87.50 dollars for the WTI.

ICE Gasoil contract for December delivery settled at 931.00 dollars on Thursday. This was 2.75 dollars below Wednesday's settlement. With some 49,726 deals the traded volume was on average.

The stochastic indicator has meanwhile lost some of its impact and is only slightly bullish for the WTI, whereas the indicator can be interpreted as neutral at ICE charts. The WTI still consolidates sideways in its range between 84.05 and 87.50 dollars. Meanwhile, it seems as if a technical triangle is forming again at ICE as well as at NYMEX charts. The Brent's mid-term support at 107.15 dollars, that has proved strong up to now, indicates that prices will continue to rise. If this support is breached, however, there would be more downward slack and a selling signal. Until then, we assess the technical situation as slightly bullish within their technical triangle.

U.S.

Nymex Access neutral: Oil prices have edged higher in East-Asia and on Globex electronic trading platform this morning after yesterday's losses. The gaining Nikkei 225 has provided some support. The traded volume is slightly below average. Investors now look ahead to the performance of stock markets, new clues from forex trade and today's economic data.

API: Crude oil +1.3; distillates +0.2; gasoline -0.1 million barrels vs previous week
DOE: Crude oil +1.1; distillates -2.5; gasoline -0.4 million barrels vs previous weekt
Survey: Crude oil +1.5; distillates -0.5; gasoline +0.2 million barrels vs previous week

Houston (ex-wharf indications 15-11)
380cst $609
180cst $714
MGO $1013

New Orleans (ex-wharf indications 15-11)

380cst $621
180cst $712
MGO $1018

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

High premiums for prompt deliveries.
380 cst $612
180 cst $622
MDO $930

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 : $ 590
(1.0 %) :$ 620
180cst: $ 620
(1.0 %):$ 650
MGO 0.1%S: $ 920