Hurricane Mitch, which lashed northern Honduras on Tuesday, was expected to affect US Gulf oil output. It has weakened, but is still unusually powerful with sustained winds of 150 mph (240 kph).

Despite a strong late cash gas oil market showing on Tuesday, with a trade at $15.25 per barrel, gas oil paper could not keep up, traders said.

November gas oil was last quoted 30 cents down to $15.20/$15.40 per barrel compared with late Tuesday's prices, brokers said.

No deals were possible as buyers appeared to have withdrawn more than sellers on bearish sentiment following crude, they said.

December gas oil paper was last discussed at $15.50/$15.70 per barrel, brokerssaid.

Traders said South Korean refiners were building stocks for the winter and signs of fresh buying on the Singapore spot market had given the market renewed confidence.

But this could be eroded gradually in the absence of buying support from key demand centres China and India.

"Sentiment is high at the moment as (the northern hemisphere) winter is coming up and people rather be long than short," one trader said. "But it is merely sentiment trading."

Traders said market sentiment was also shored up by news from Indonesia that Pertamina would buy four million barrels for November, which means it is in the market for one more cargo after securing about 3.6 million barrels.

The regrade -- the spread between jet fuel and gas oil -- eased slightly to $2.10/$2.20 for November, from $2.20/$2.45 on Tuesday.

Traders said possible arbitrate exports of up to 150,000 tonnes to the United States West coast had given market a floor.

Fuel oil also eased with crude but fundamentals were relatively morebalanced, traders said.

Market confidence was restored by the placement of most of the arbitrate cargoes which could have otherwise flooded the spot market here, traders said.

Refinery cutbacks, which appear likely to continue into November, were also shortening supplies, they said.

November swaps were quoted $79.50/$80.50 per tonne, down just $1.00 from Tuesday.

On Tuesday, two 180-cst cargoes changed hands at $82 and $83 for November 11-15 lift, little changed from Monday's trade although at least $2-$3 per tonne higher than Friday's.