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Brent crude inched higher in London Tuesday, amid very thin volumes, as the front-month contract looks to continue four days of positive momentum. Brent has bounced from a two-month low hit Oct. 1 but is hitting fierce resistance below $110 a barrel, above which it hasn't traded for any length of time since mid September. Brent crude for November delivery was up 0.1% at $109.81 a barrel on ICE Futures Europe. U.S. crude-oil futures were up 0.4% at $103.38 a barrel on the New York Mercantile Exchange.

Oil futures saw a strong decline at the beginning of the week and breached several supports both during morning trade already. The fact that tropical storm Karen had eased without causing any great damage in the Gulf region and budget negotiations in the USA were still fruitless caused stock as well as oil markets to plummet yesterday. Automatically triggered selling orders then reinforced the downward pressure until Brent's and WTI's strong supports at 108.00 USD and 102.50 USD, respectively, stopped the downturn. While the American crude continued to drop during NYMEX floor trade, supports at ICE remained strong. When the energy information service Genscape spread the news that the Seaway pipeline had been shut down, at least technical buying orders slightly drove oil prices back up, particularly at ICE. In New York, WTI's strong resistance at 103.70 limited the upward potential. In the course of evening trading, oil markets saw some profit-taking, which pulled oil futures back from their day's highs after the Seaway pipeline had been restarted. In the end, oil contracts in London closed with small gains whereas WTI consolidated at its opening level.

ICE Gasoil contract for October delivery settled at 926.25 USD on Monday. This was 3.25 USD above Friday's settlement. With some 59,400 deals, the traded volume was above average.

The Stochastic's lines have crossed at the WTI chart, giving off a selling signal to the market. At ICE charts, however, the indicator's lines are converging and would only give off a selling signal if they crossed. The RSI is still in the neutral zone at all charts. For dated Brent September, a flag formation has formed. It will be decisive for further price development in which direction the contract escapes this formation. As actual signals are still lacking for ICE contracts, we consider the technical constellation as neutral to slightly bearish.

U.S.

Nymex neutral: Oil prices have been moving in a relatively narrow range this morning, trading with a soft tendency. Investors are still refraining from taking too high a risk in view of the persisting budget deadlock in the USA. The traded volume at NYMEX is far below average for this time of day. Market players are now eying the performance of European markets, new signals from forex trading and some economic indicators to be released in Germany and the USA.

Houston (ex-wharf indications 08-10)
380cst $608
180cst $665
MGO $995

New Orleans (ex-wharf indications 08-10)
380cst $612
180cst $658
MGO $995

Singapore

Crude is turning bullish with WTI +$0.73. Singapore paper is bearish with -$5.50 for 180cst and -$5.50 for 380cst for Oct, and for Nov 180 cst -$2.00 and 380cst -$0.50 with MGO contracts Oct +$1.83 and Nov +$1.71. The cargo market is bearish still with 180cst -$7.45, 380cst -$8.42 and MGO -0.91.

The Singapore fuel oil markets fell more than $7.5 during the Platts window yesterday. The Asian fuel oil cracks extended weakness. The delivered bunker premiums ranged between $4.0 to $7.5 above cargo prices. This morning markets are trading slightly down.

380cst $600
180cst $602
MGO $920

Fujairah (delivered indications 07-10)

380cst $607
180cst $664
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $587
(1.0 %) :$606
180cst: $617
(1.0 %):$ 636
MGO 0.1%S: $ 899