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Crude oil rose more than 1%, following two sessions of losses, after twin blasts in Egypt's Sinai peninsula killed at least three soldiers. Egypt is home to one of the world's most important oil-transit points, through which about 7% of all seaborne traded oil passes. The attacks have heightened fears about supply disruptions or a spillover of tensions into other parts of the oil-rich Middle East.In the Sinai attack, twin blasts targeting Egypt's army killed at least three soldiers in the restive peninsula, where the military is battling an insurgency, Agence France-Presse reported security officials as saying. The October Brent on London's ICE futures exchange rose $1.01, or 0.9%, to be at $112.26 a barrel. Earlier, the contract rose to $112.49. The October contract on the New York Mercantile Exchange was up 37 cents, or 0.3%, at $107.76 a barrel. In recent weeks, oil prices had risen sharply on a tumble in Libyan oil production to depths not seen since a civil war toppled the Gadhafi regime in 2011, combined with fears of a possible U.S.-led military strike against Syria.

Tuesday morning, oil futures started consolidating near Monday’s closing level, even testing their first resistance thanks to upbeat Chinese data. But as these had proved to be strong at this point, upward potential remained limited. In view of the progress made regarding a political solution to the Syrian conflict, many traders took profits form long positions and the bears were dominating the oil market in the afternoon. The technical anlaysis then regained influence and the Stochastic’s bearish signals accelerated the downturn. In the early afternoon, oil contracts breached several supports, triggering more stop-loss orders which kept up the selling pressure. In this phase, the risk premium on Syria was significantly reduced and thus, even domestic prices were showing a decline (price index). OPEC’s monthly report could not make a noticeable impact on the oil market yesterday. Consequently, oil futures at ICE and NYMEX closed with hefty losses.

ICE Gasoil contract for September delivery settled at 938.75 USD on Tuesday. This was 21.25 USD below Monday's settlement. With some 39,300 deals the traded volume was below average.

After giving off a selling signal yesterday, the Stochastic oscillator is gradually losing its effect. The RSI is also not providing any fresh signals this morning. However, the Stochastic remains slightly bearish at least. The downward correction seen at the beginning of the week has used up much of the bearish potential already and thus we consider the technical constellation as neutral to bearish this morning.

U.S.

Nymex bearish: Oil futures have been consolidating in early Asian trading this morning after oil markets saw some profit-taking yesterday, not displaying any clear direction yet. The traded volume at NYMEX is slightly above average for this time of day. Market players are now waiting for European markets to open, for new signals from forex trading as well as for today’s economic indicators. They will also continue to closely eye developments in the Middle East.

Houston (ex-wharf indications 10-09)
380cst $617
180cst $689
MGO $1020

New Orleans (ex-wharf indications 10-09)
380cst $619
180cst $671
MGO $1022

Singapore

Crude is bearish with WTI -$0.82. Singapore paper is loosing with -$2.00 for 180cst and -$2.25 for 380cst for Sep, and for Oct 180 cst -$2.75 and 380cst -$2.25 with MGO contracts Sep -$1.20 and Oct -$1.17. The cargo market is following with 180cst -$8.01, 380cst -$7.71 and MGO -$1.67.

The Singapore fuel oil markets suffered another drop of more than -$7.5 during the Asian Platts window yesterday tracking crude movements. The delivered bunker premiums were firmer at around +$3.0 above cargo prices as the lower outright prices and weaker crude attracted buying interest. Bunker fuel oil swaps lost nearly $14/mt at the front of the forward curve for Singapore papers. Backend was slightly stronger, with cal14 papers assessed some $11/mt down vs. previous close. This morning markets are trading slightly higher.

380cst $597
180cst $603
MGO $920

Fujairah (delivered indications 11-09)

380cst $598
180cst $658
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

In Antwerp a lot of lsfo problems due to loading time of 1 week at storages.

In September (starting week 4) ESSO Antwerp will start working on maintenance of their refinery. Because of this, local Antwerp suppliers will need to buy more product in Rotterdam, therefor long waitinglines at Rotterdam refineries and storage are to be expected, with premiums on price as a result.

Indications for delivered bunkers:
380cst : $590
(1.0 %) :$619
180cst: $620
(1.0 %):$ 649
MGO 0.1%S: $ 919