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ICE Gasoil contract for June delivery settled at 860.75 USD on Tuesday. This was ±0,00 USD compared to Monday's settlement. With some 57,000 deals the traded volume was about average.

The Stochastic’s bearish influence is gradually decreasing as its both lines are converging. While Brent and G.Oil stay outside their medium-term trend channel, WTI has already escaped its steep uptrend channel. This can be largely attributed to the widening of the price spread between the two crude benchmarks, the more so as crude inventories are expected to have piled up again. Thus, fresh signals are still lacking and thus we assume a neutral stance this morning in view of the technical constellation. Signals could arise if oil prices escaped their short-term technical triangle or else, if the RSI fell below the 70%-line at the G.Oil chart.

U.S.

Nymex neutral: The Nikkei 225 has been surging in Asian trading this morning but is actually just catching up with the gains made at U.S. and European markets yesterday. Accordingly, the Asian index does not have a propping effect on the oil market. Here, oil prices slumped at the release of the preliminary estimate on Germany’s GDP which came out far worse than expected and consequently, pushed down the euro and thus, the oil market. The traded volume at NYMEX is clearly below average for this time of day. Market players are now eying the performance of European markets, fresh signals from forex trading, for a series of economic indicators to be released in Europe and the USA as well as for the DoE report at 4.30 p.m.

DOE: due out tonight
Forecast: Crude oil +/- 0.0; distillates +0.5; gasoline +0.7 million barrels vs previous week
API: Crude oil + 1.1; distillates +1.9; gasoline -0.5 million barrels vs previous week

Houston (ex-wharf indications 14-05 )
380cst $582
180cst $642
MGO $970

New Orleans (ex-wharf indications 14-05)
380cst $596
180cst $645
MGO $972

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

Crude is dropping like a stone with -$1.44. The paper market is bearish still, losing with May 180cst -$6.00 and for 380cst -$5.50, and June contracts with 180cst -$6.25, 380st -$7.00. The cargo market is dropping, with 180cst -$0.62, and 380cst -$1.81 and MGO -$0.31.

The Singapore fuel oil markets dipped between -$2.0 and -$0.5 during the morning Platts window yesterday. The Singapore heavy residual inventory saw a build of +1.6 mbbl to 17.94 mbbl. The delivered bunker premiums were around $7.5 above cargo prices. This morning markets are trading down.

High premiums for prompt deliveries.
380 cst $602
180 cst $608
MGO $880

Fujairah (delivered indications 15-05)
380cst $617
180cst $668
MGO $995

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $575
(1.0 %) :$ 605
180cst: $ 605
(1.0 %):$ 635
MGO 0.1%S: $ 830