Oil prices eased for the first time in 2 weeks as US inventory data showed a surprise build in crude oil stocks. The futures market was very volatile with WTI  trading between $48.50 & $50.00/bbl. The market was expecting crude stocks to draw following delay to deliveries from Hurricane Ivan. However, the reduction in refinery utilization more than offset the reduction in supply. The market was also down on news that Nigerian rebels and the government have agreed to a ceasefire while negotiations take place. Technically the market still remains in the uptrend. Prices on the after hours ACCESS trading has WTI down $0.18/bbl this morning.

 

Singapore prices were down $0.65/bbl on the back of lower crude prices as well as more aggressive offers at the historic high prices. Trader Hin Leong was the only buyer of both gasoil and kerosene. Physical kerosene remains well offered but traders are still bullish as we head into winter with low Japanese stocks. Singapore prices should be down approximately $0.40/bbl this morning.

 

Closing Prices Wednesday September 29, 2004:

 

WTI                        $49.51/bbl            -$0.39/bbl

Brent                      $46.08/bbl            -$0.37/bbl

IPE Gasoil              $432.50/t             +$2.75/t =+$0.37/bbl