Oil futures ended up overnight after another volatile intra day trading which saw prices trade within a $1.25/bbl range. Prices were heading down for most of the day following the easing of Hurricane Ivan but prices rose in the last hour over concerns that some refineries that were shut may have trouble restating quickly. There will still be a loss of refining production of 2-5 days. Traders are also watching another new storm Jeanne. Technically the market is still trading sideways. Trading this morning on the after hours ACCESS is up $0.33/bbl as Japanese cover shorts ahead of the weekend.

 

Singapore prices were down slightly yesterday in line with crude and Singapore Kero remains well offered with less aggressive physical bidding although BP and some banks continue to aggressively bid the swaps market. Expect prices to be up 20-30 cents per barrel this morning.

 

Closing Prices Thursday September 16, 2004:

WTI Oct                $43.88/bbl            +$0.30/bbl (contract expires Tuesday night)

WTI Nov                $43.92/bbl            +$0.41/bbl

Brent Nov              $40.75/bbl            +$0.40/bbl

IPE Gasoil             $380.75/t             -$12.25/t = -$1.64/bbl