MARKET PREVIEW: Oil Futures Higher in Overnight Trade

    

   NEW YORK (DTN) -- New York Mercantile Exchange oil futures rose in overnight 
trade as risk appetite returned on the back of fresh upbeat economic indicators 
from the U.S. and Asia that boosted both equities and commodities. 

   A weaker U.S. dollar against rival world currencies and an upward revision 
of global oil demand forecast by the International Energy Agency also buoyed 
oil prices.

   The Paris-based IEA this morning projected a global oil demand growth rate 
of 1.9 million bpd or 2.2 percent to 86.6 million bpd, up from last month's 
estimate of 1.8 million bpd. 

   At 8:00 AM ET on Friday, October NYMEX WTI crude futures were up $1.32 at 
$75.57 bbl, after rising to an overnight high of $75.95, just shy of Thursday's 
3-week high of $75.96 on the spot continuation chart. On ICE Futures, October 
Brent futures were down 1.0cts at $77.46 bbl after paring overnight gains. 

   In products trade, October NYMEX No. 2 heating oil futures were up 1.21cts 
at $2.0839 gal after trading to an overnight high of $2.0889, which was below 
Thursday's one-month high on the spot continuation chart of $2.1067 gal. 
October NYMEX RBOB gasoline futures were up 1.79cts at $1.9533 gal after 
trading overnight to a 3-week high of $1.9672 on the spot continuation chart. 

   Data from Asia showed Japan's gross domestic product expanded at an 
annualized rate of 1.5 percent in the second quarter, up from last month's 
preliminary reading of 0.4 percent. China's imports also rebounded, suggesting 
the country's oil demand remains robust.

   The Asian data came after the U.S. Labor Department said on Thursday that 
new claims for unemployment benefits dropped last week by a more-than-expected 
27,000.

   On U.S. oil fundamentals, while the market is generally oversupplied, data 
from the Energy Information Administration showed a larger-than-expected 1.9 
million bbl crude stock drawdown last week.


NYMEX Globex, 8:09 AM ET

                          Last       Change          High       Low
Oct.   WTI crude          $75.57     up $1.32        $75.95     $74.37
Nov.   WTI crude          $76.57     up $0.78        $76.97     $75.69
Oct.   Heating oil        $2.0805    up 1.21cts      $2.0889    $2.0646
Nov.   Heating oil        $2.1008    up 1.09cts      $2.1080    $2.0844
Oct.   RBOB futures       $1.9533    up 1.79cts      $1.9672    $1.9335
Nov.   RBOB futures       $1.9424    up 0.99cts      $1.9555    $1.9296
ICE Futures, 8:00 AM ET
Oct.   Brent crude        $77.46     dn $0.01        $77.92     $77.05
Nov.   Brent crude        $77.53     dn $0.03        $78.00     $77.14

   EAST OF ROCKIES SPOT PRODUCT MARKETS

   U.S. spot product prices in the New York Harbor and at the Gulf Coast were 
mixed in mixed cash trading Thursday afternoon, tracking volatile paper trading 
on the NYMEX. Cash differentials were mostly stronger.

   Gulf M3 regular gasoline traded 0.8cts stronger at a 2.65cts premium over 
October NYMEX RBOB futures as the spot price rose by 0.4cts to $1.9619 gal. 
Harbor M2 regular gasoline spot prices fell 0.15cts to $1.9604 gal as cash 
differentials traded 0.25cts stronger at a 2.5cts premium over RBOB futures.

   Gulf ultra-low sulfur diesel was bid 1.15cts stronger at a 2.9ct premium 
over October No. 2 oil futures while the spot price moved down 0.18cts to 
$2.0974 gal. Harbor ULSD spot price moved down 1.33cts to $2.1334 gal as cash 
differentials stayed steady at a 6.5cts premium to No. 2 futures.


PROJECTED OPENING SPOT PRODUCT PRICES ($/gal) at 8:00 AM ET
N.Y. HARBOR                           GULF COAST
No.2 Oil              $2.0625         No.2 Oil              $2.0300
ULSD                  $2.1450         ULSD                  $2.1090
Jet                   $2.1300         Jet                   $2.0950
Conventional Regular  $1.9785         Conventional Regular  $1.9800
Conventional Premium  $2.0535         Conventional Premium  $2.0450
RBOB                  $1.9735         RBOB                  $1.9810
PBOB                  $2.0760         PBOB                  $2.0610
CBOB 87               $1.9585 CBOB 87 $1.9800
CBOB 93               $2.0010 CBOB 93 $2.0350
                                      CHICAGO
                                      ULSD                  $2.1600
GROUP 3                               Jet                   $2.1375
ULSD                  $2.1485         Conventional Regular  $2.0810
Jet                   $2.1375         Conventional Premium  $2.2310
Conventional Regular  $2.0810         RBOB                  $2.1410
Conventional Premium  $2.1635         PBOB                  $2.2710
                      CBOB 87 $2.0760

   George Orwel, 1.718.522.3969, george.orwel@telventdtn.com, Telvent DTN, 
www.telventdtn.com. (c) 2010 Telvent DTN. All rights reserved.