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Wednesday morning, oil futures sharply rose, breaching several short-term resistance lines without leaving their existing trend channels, however. The soft dollar rendered possible some upward potential throughout the commodities market. Ahead of the FOMC meeting, investors took some profit regarding the US currency. The lower German unemployment rate and the positive employment data published by the ADP additionally supported the euro. The DOE's data were neither definitly bullish nor clearly bearish, but given the unexpected builds in crude oil and gasoline stocks they had a slightly bearish tendency. Market participants kept focussing on the euro/dollar-parity while they were waiting for the FOMC meeting. As had been expected, the Fed left the interest rates unchanged on a leve from 0,00% to 0,25%. Given Ben Bernanke's pessimistic comments after the meeting, risk aversion increased again and the dollar recovered. Investors at NYMEX and ICE waited for the reaction of the dollar and renewedly raised the pressure to sell during late trade.

ICE Gasoil contract for November delivery settled at 961,25 dollars on Wednesday. This was 22,25 dollars above Tuesday's settlement. With some 50.900 contracts the traded volume was below average.

The OPEC's oil output in October decreased to 30,195 million barrels a day. In September, the organisation still produced 30,275 mbpd. Although Libya produced 370,000 barrels per day (even 500,000 bpd by the end of October), the production cuts of other countries compensated for this increase. Saudi Arabia, for example, reduced its output since August by 400,000 barrels. Algeria, Angola, Venezuela, Iran and Iraq likewise cut their production.

According to Venezuela's Oil minister Ramirez, the country aims at producing 3 million barrels per day in 2012. Analysts doubt, however, that this is faisable. The official quote of the OPEC for Venezuela stands at 1,986 mbpd and according to recent estimates, the country only produced approximately 2,45 million barrels of crude oil per day. However, Venezuela has not published any official data regarding its pruduction anymore since June 2011. As to the governmental budget for the next year, Ramirez deliberately set a low oil price of about 50 dollars per barrel given the threats of a global recession. According to experts this price will not be sufficient to attain a balanced budget, however. With this price, Ramirez is probably rather doing President Chavez a favour as it increases the leeway in budget plans.

The euro declined against the dollar as European leaders said Greece’s referendum on a bailout deal will determine whether it will stay in the 17-nation currency union. French President Nicolas Sarkozy said Greece won’t receive a “single cent” in aid without holding to the terms of a rescue agreement hammered out last week. The European leaders’ hardline tactics open the door for the first time for a country to leave the 12-year-old currency bloc. Greek Prime Minister George Papandreou defended his decision to call a referendum, telling reporters at a separate briefing that Greece “needs a wider consensus” for the bailout terms and expressing confidence it will back staying in the euro. The euro also slid before Mario Draghi chairs his first European Central Bank policy meeting as president today amid prospects the bank will lower borrowing costs to stem recession risks in the region. The euro region’s central bank will keep its key rate at 1.5 percent, according to the estimates.

U.S.

Nymex Access losing: Oil prices retreat significantly during East Asia and Globex electronic trade this morning, keeping track of last night's soft tendency. According to market participants, momentum has been provided by the stronger dollar. The traded volume is slightly above average. Traders look ahead to the opening of European stock markets, the results of the ECB's reunion and further European and American economic indicators.

Survey of US natural gas storage volumes according to EIA to be released later today for the week till October 28th: +68,00 bcf (billion cubic feet) vs the previous week.

Houston (ex-wharf indications 3-11)

380cst $642
180cst $694
MGO $990

Very tight avails for 180 cst

New Orleans (ex-wharf indications 3-11)

380cst $645
180cst $697
MGO $994

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

Crude is losing sharply after Greece's shock proposal that a referendum should be held on the bailout sent the stock markets tubling again, WTI is -$1.48. Singapore paper is reluctant to follow with -$2.75 for 180cst and -$2.80 for 380cst for Nov, and for Dec 180 cst -$7.55 and 380cst -$8.60 with MGO Nov contracts at -$1.94 and for Dec at -$1.94. The cargo market is reacting to the jump in paper from the last days with 180cst +$16.03, 380cst +$15.86 and MGO +$1.53.

The Singapore fuel oil markets slipped more than -$2.50 during the Platts window. The Asian fuel oil crack strengthened as buying interest supported the market. The delivered bunker premium softened to around $15.00 above the cargo prices yesterday

High premiums for prompt deliveries.

380 cst $682
180 cst $692
MDO $920

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam

Indications for delivered bunkers:

380cst : $ 643
(1.0 %) :$ 658
180cst: $ 664
(1.0 %):$ 677
MGO 0.1%S: $ 959