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After trading up and down for days, oil prices at ICE and NYMEX have stayed in their technical range during morning trade, just as they did yesterday, as guiding signals have been lacking ahead of important data to be released in the further course of the week. Neither the slightly bullish technical constellation nor the dropping euro (worse-than-expected EU and Germany data) could provide clear momentum. Prior to the release of the ADP job market report this afternoon, which serves as an indication for the government’s official statistics, no great fluctuations are expected at the oil market.

Oil markets saw a very calm trading session Tuesday. Without important economic indicators or any other guiding signals, market players noticeably remained cautious throughout the day and confined themselves to merely consolidate their risk positions. Only in the late afternoon did oil prices breach their resistances at 102.60 USD (Brent), at 860.00 USD (G.Oil) and at 93.60 USD (WTI). After this price jump, the Stochastic’s lines crossed and the indicator gave off a buying signal which accelerated the upturn. Fundamentally, there was no justification for this late surge and thus it was a mere technical reaction. Adding to the upward potential was the bullish API report released last night. Consequently, oil futures closed stronger at their day’s highs.

ICE Gasoil contract for June delivery settled at 857.75 USD on Tuesday. This was 3.50 USD above Monday's settlement. With some 63,800 deals the traded volume was about average.

As the Stochastic’s lines crossed at all charts late in the evening on Tuesday, the indicator gave off a buying signal. Consequently, the technical constellation remains bullish this morning. However, traders will be focusing on fundamental factors today, which eclipse the technical constellation. After yesterday’s late surge, investors may tend to take small profits during morning trade.

U.S.

Nymex bullish: The traded volume at NYMEX is about average for this time of day. Market players are now eying the performance of European markets, fresh signals from forex trading, a series of economic indicators to be released in the course of the day as well as the DoE report at 4.30 p.m.

API: Crude oil - 7.8; distillates +0.2; gasoline -1.3 million barrels vs previous week.
DOE: due out tonight.
Forecast: Crude oil - 0.6; distillates +1.5; gasoline +1.2 million barrels vs previous week.

Houston (ex-wharf indications 4-06 )
380cst $582
180cst $645
MGO $952

New Orleans (ex-wharf indications 4-06)
380cst $586
180cst $621
MGO $954

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

Crude is slowing but bullish still with +$0.87. The paper market is gaining with June 180cst +$5.75 and for 380cst +$5.75, and July contracts with 180cst +$7.00, 380st +$7.20. The cargo market is tracking crude and paper, gaining with 180cst +$4.17, and 380cst +$2.70 and MGO +$2.01.

The Singapore fuel oil markets gained back between +$2.50 to +$4.50 during the Asian Platts window yesterday. The market continued to be supported by strong buying especially in the 180cst side by several major players. The delivered bunker premiums eased back down to around +$7.0 above cargoes prices. This morning markets are trading higher.

380cst $601
180cst $616
MGO $875

Fujairah (delivered indications 04-06)

380cst $609
180cst $684
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $580
(1.0 %) :$ 611
180cst: $ 613
(1.0 %):$ 639
MGO 0.1%S: $ 858