Daily Oil Market Comment

Oil prices continue their upward climb on concerns over low stocks following Hurricane Ivan. The market is also worried about more Yukos problems with some Power companies reducing electricity supplies due to unpaid bills. The US inventory data will be released tonight as big draws are expected due to hurricane Ivan which will probably see the market spike again. Trading in after hours ACCESS has WTI up another 25 cents per barrel this morning. Technically the market remains in uptrend.

Singapore prices were up only 30 cents per barrel yesterday with more aggressive offers on the physical cargoes although traders are being aggressive in buying the swaps. Expect Singapore prices to be up $1/bbl this morning.

Closing Prices Tuesday September 21, 2004:

WTI $46.75=6/bbl +$0.57/bbl

Brent $43.35/bbl +$0.48/bbl

IPE Gasoil $409.50/t +$10.75/t = $1.44/bbl

Asian Day Market Movement

Oil futures were down slightly but Singapore prices up during Asian trading day. Futures down on some small profit taking but the market sentiment remains bullish on the after affects of Hurricane Ivan which will reduce product stocks from refining closures. Technically the market remains in the short term uptrend.

Singapore prices were up on the back on Monday night's futures increase. Despite physical cargoes for gasoil and kero being done at lower premiums, outright prices will be up on the back of aggressive swaps buying by Hin Leong for gasoil and BP for kero. Expect Singapore prices to be up $0.35 per barrel today.

Prices as at 5:30pm Singapore Time Tuesday September 21, 2004:

WTI $46.04/bbl -$0.15/bbl

Brent $42.77/bbl -$0.14/bbl

IPE Gasoil $401.50/t +$2.75/t = +$0.37/bbl

Singapore Kero $56.20/bbl +$0.35/bbl

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