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Crude oil futures ticked higher Thursday morning, retracing some of the sharp losses incurred in the previous session but with both benchmarks still constricted within a tight range. At 1025 GMT, the front-month January Brent contract on London's ICE futures exchange is up 21 cents at $109.02 a barrel. The front-month January light, sweet crude contract on the New York Mercantile Exchange is trading 24 cents higher at $88.12 a barrel.

As expected, the oil market consolidated Wednesday morning with an upward tendency in a technical correction of Monday's and Tuesday's losses. A strong euro supported oil prices until the afternoon. Since the ADP job market report had been disapointing, traders cautiously took profit and prices hit the first support lines, which proved to be strong before the relesase of the DOE U.S. petroleum inventory data. These marks were only breached after the DOE report showed a surprise build in U.S. oil product stocks and comprehensive stop-loss selling orders were automatically triggered. Only in the range of supports at 87.50 dollars (WTI) and at 925.00 dollars (G.Oil) did the selling pressure recede while markets remained rather volatile after volume was again below average. In the afternoon, data showed that U.S. ISM PMI and factory orders were better than expected. But despite the positive impact on the stock market, technical selling pressure dominated at ICE and NYMEX. Thus oil futures consolidated near yesterday's lows in the evening and this morning.

ICE Gasoil contract for December delivery settled at 928.00 dollars on Wednesday. This was 6.00 dollars below Tuesday's settlement. With some 32,900 deals the traded volume was below average.

RSI and Stochastic indicators are at the oversold level but the Stochastic oscillator is still bearish. Bearish potential decreased due to fallling prices yesterday but the technical tendency still remains bearish. There are no fresh selling signals this morning so analysts now expect consolidation above yesterday's lows. Only below this range further downside could be expected.

U.S.

Nymex Access bearish: Oil prices lost ground last night after the release of DOE data. Now traders consolidate their risk positions and are eyeing U.S. job market data to be released on Friday. For this time of day, the sales volume at the electronic NYMEX is slightly below average. Market paricipants are currently waiting for the European markets to open, for signals from forex trading and for the release of the upcoming economic indicators.

API: Crude oil -2.2; distillates +1.1; gasoline +5.7 million barrels vs previous week.
DOE: Crude oil -2.4; distillates +3.0; gasoline +7.9 million barrels vs previous week.
Forecast: Crude oil -0.4; distillates +1.2; gasoline +2.2 million barrels vs previous week.

Houston (ex-wharf indications 05-12)
380cst $608
180cst $668
MGO $1016

New Orleans (ex-wharf indications 05-12)

380cst $637
180cst $668
MGO $1021

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

The Singapore markets were around flat ranging between -$1.0 and +$1.0 during the morning Platts window yesterday despite the softer crude values. The market was well-bided by major; BP buying both fuel oil swaps and physical cargoes. The delivered bunker premiums saw some level of revival ranging $5.0-2.0 above cargo prices yesterday. This morning the markets are trading slightly higher. R32;

High premiums for prompt deliveries.
380 cst $604
180 cst $614
MDO $929

Fujairah (delivered indications 06-12)

380cst $610
180cst $635
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam continued with slow demand today which is not a bad thing with some difficulties with bunker deliveries due to ongoing delays some loading installations, Antwerp continued to run low of high sulfur fuel oil due to shortages of blending components, sources said. Avails in Rotterdam are not much better either in terms of HSFO availability, some are not quoting until December 8th.

Indications for delivered bunkers:
380cst : $ 585
(1.0 %) :$ 610
180cst: $ 615
(1.0 %):$ 640
MGO 0.1%S: $ 925