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Brent crude slipped toward $109 a barrel on Thursday on rising U.S. oil stockpiles, while fears that the world's largest economy might miss a deadline for next year's budget and risk a recession also kept bulls in check. Brent crude fell 19 cents to $109.31 a barrel by 1112 GMT, while U.S. crude was at $86.34, down 43 cents. The January Brent contract expires on Friday.

After rising prices on Tuesday, the oil market was stronger on Wednesday and continued upward correction. The driving force had been the strong euro vs a soft dollar as well as some traders' speculations in the morning that the Fed would certainly extend expanisve measures. The IEA monthly report was rather bullish after the upward revision of the 2013 demand growth prognosis despite low economic activity in November. Due to a still bullish technical view (buying signal at the WTI stochastic), prices at ICE and NYMEX breach first resistances, automatically triggering more stop-loss buying orders. In Vienna, OPEC left everything as it was. The output ceiling remains unchanged at 30 million barrel/day and El-Badris tenure was extended by one year because the organization's members could not agree on a successor. Price volatility increased with the opening of NYMEX floor trading and oil futures quickly traded up, triggered by short-coverings prior to the FOMC decision and the IEA report. The DOE data, however, were clearly bearish due to the build in crude-oil and oil products. Thus the oil market briefly returned from yesterday's high but was boosted again by the Fed announcement of more expansive measures. On the one hand, this decision appreciated the dollar, which makes oil futures attractive for investors outside the USA, and on the other hand, the new bond purchasing programme will boost the economy and thus support U.S. oil demand. Prices were distinctly stronger at the closing of NYMEX and ICE. But upside was limited in the evening by bearish DOE petroleum inventories.

ICE Gasoil contract for December delivery settled at 923.00 dollars on Wednesday. This was 15.50 dollars above Tuesday's settlement. With some 100,000 deals the traded volume was above average.

The Stochastic oscillator remains clearly bullish at ICE and NYMEX while the RSI is moving downwards again towards the oversold range. Buying signals, however, date back to one or two days and after yesterday's price rally, the question remains just how much additional upward potential will be left over in face of buying signals. According to the stochastic, technical indicators show a slightly bullish constellation.

U.S.

Nymex Access bullish: Oil futures at ICE and NYMEX are softer this morning as a result of yesterday's profit-taking after the price rally, which bore fruit at night. The traded volume at NYMEX is about average at this time of day. Market participants are waiting for the European market to open, for the ECB monthly report and the U.S. economic indicators to be released in the course of the day.

API: Crude oil +4.3; distillates +2.2; gasoline +2.8 million barrels vs previous week
DOE: Crude oil +0.8; distillates +3.0; gasoline +5.0 million barrels vs previous week
Survey: Crude oil -1.7; distillates +1.5; gasoline +2.5 million barrels vs previous week

Houston (ex-wharf indications 12-12)
380cst $611
180cst $708
MGO $990

New Orleans (ex-wharf indications 12-12)
380cst $625
180cst $666
MGO $995

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

Crude with WTI -$0.34. Singapore paper is stable with +$0.75 for 180cst and -$2.00 for 380cst for Nov, and for Dec,180 cst +$0.25 and 380cst +$0.20. With MGO contracts Nov +$0.72 and Dec +$0.72. The cargo market is bullish with 180 cst +$2.37 380cst +$3.23 and MGO +$0.70.

The Singapore markets were up again, more than $2.5 during the morning Platts window tracking higher crude values. Delivered bunker premiums were inched up to $5.0- 6.0 above cargo prices yesterday as crude strengthened after the window. Bunker fuel oil swaps gained app.$6.5/mt at the front of the forward curve for Singapore papers. Backend was app. $2/mt stronger. This morning the markets are trading slightly lower.

High premiums for prompt deliveries.
380 cst $601
180 cst $611
MDO $915

ARA (Amsterdam - Rotterdam - Antwerp)

LSFO loadings are taken up to 4 days in Antwerp. HSFO there are no spot-avails. Beside the existing contracts of the suppliers, there are no load possibilities in Antwerp or Flushing. Both influences the Rotterdam hub with regards to the loading capacity. A lot of waitingtime is reported in some of the refineries or storages. Those where waitingtime is taken to the minimum, high premiums are noted. Therefore, for prompt enquiries, a bigger premium is to be expected.

Indications for delivered bunkers:
380cst : $ 575
(1.0 %) :$ 610
180cst: $ 605
(1.0 %):$ 640
MGO 0.1%S: $ 918