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This morning oil prices still got support from last night's API report that announced a smaller-than-expected build in US crude stocks. But meanwhile traders are taking profit and many stay at the sidelines to wait what the DoE will report. Brent and Gasoil at the ICE have tested their first support lines that prove strong for the time being.

ICE Gasoil contract for November delivery settled at 904.00 USD on Monday. This was 11.00 USD below Friday's settlement. With some 49,300 deals, the traded volume was below average.

Oil prices consolidated in a narrow range Tuesday morning in London and New York, trying in vain to breach their first resistances in a market lacking direction. Production outages in Libya where oil fields and export terminals are still blocked, lent some support at this time of day. The losses supported mainly the futures at the ICE, while the WTI crude traded lower, weighed down by forecasts of another build in US crude stocks. Several supports were breached during the session in New York, affecting also the prices at the ICE so that the futures finished lower in London and New York. The API's oil inventory report released in after-hour trading was much less bearish as expected but gave some bullish signals, tempting traders to cover yesterday's short positions.

The Stochastic's lines are converging at the ICE charts while at the WTI chart they have met. Still, the indicator is seen neutral at ICE and NYMEX as fresh bullish signals are not being triggered as long as the lines have not crossed. Should this happen would a strong buying signal be triggered in an oversold market, see also technical analysis. The RSI stays at the neutral level at the ICE charts but is at the oversold level for the WTI and could give an additional buying signal should it breach the 30 line. The bearish potential is limited by strong key support lines at 900,00 dollars (gasoil) and 105,00 dollars (Brent). Only if the lines are breached more downside is seen. Because of the lack of signals we consider the actual technical market situation as neutral, an upward correction becoming likely as soon as the RSI and/or the Stochastic give a buying signal.

U.S.

Nymex bullish: Oil prices are rising at ICE and NYMEX this morning after a bullish API report last night, the stronger euro vs dollar lending some additionnal support. The traded NYMEX volume is about on average for this time of day. Market players anticipate the opening of European markets and the release of some economic indicators. Today the DoE's figures on US oil stocks will also be in the centre of investors' attention.

Survey: crude oil +2.2; distillates -1.5; gasoline -0.4 vs million barrels previous week.
API: Crude oil +0.9; distillates -2.8; gasoline -4.3 vs million barrels previous week.
DOE: Out tonight.

Houston (ex-wharf indications 4-11)
380cst $592
180cst $659
MGO $983

New Orleans (ex-wharf indications 4-11)
380cst $602
180cst $651
MGO $986

Singapore

Crude easing with WTI -$0.57. Singapore paper is mixed with +$0.65 for 180cst and +/- $0.00 for 380cst for Nov, and for Dec 180 cst +$0.40 and 380cst +$1.00 with MGO contracts Nov -$0.12 and Dec +/-$0.00 The cargo market bearish still with 180 cst -$3.36 380cst -$1.64 and MGO -$0.63.

380cst $597
180cst $603
MGO $900

Fujairah (delivered indications 6-11)

380cst $601
180cst $661
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $575
(1.0 %) :$596
180cst: $607
(1.0 %):$ 623
MGO 0.1%S: $ 891