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On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD93.32 a barrel during European morning trade, up 0.3%. New York-traded oil futures traded in a range between USD92.93 a barrel, the daily low and a session high of USD93.42 a barrel. The December contract tumbled to USD92.86 a barrel on Tuesday, the lowest since June 24, before settling at USD93.04 a barrel, down 2.21%. Oil futures were likely to find near-term support at USD92.73 a barrel, the low from June 24 and resistance at USD95.22 a barrel, the high from November 12.

ICE Gasoil contract for November delivery settled at 894.75 USD on Tuesday. This was 4.00 USD below Monday's settlement. With some 95,100 deals, the traded volume was well above average. The slightly bullish technical constellation and the latest trouble in Libya where demonstrators have blocked the Greenstream pipeline carrying natural gas to Italy supported oil prices at the beginning of the European session on Tuesday. After the supports at 896.00 dollars (Gasoil) and 105.85 dollars (Brent) proved strong, oil futures rebounded and hit their resistance lines in the process, trying their upside. The OPEC's monthly energy report that was released in the afternoon and showed that global oil reserves are abundant provided only marginal changes compared to the last report and had therefore no influence on the oil market. Until the opening of NYMEX session oil consolidated on its high level while market participants took the chance to take some profit. Later in the session oil prices collapsed at ICE and NYMEX, led by the WTI contract, hitting fresh intraday lows on expectations the DoE will show another build in US crude oil stocks. Because of Monday's US holiday the figures are being released one day delayed on Thursday. The WTI lost considerably more ground than the ICE futures and hit its 93,05 dollar support while the Brent contract stabilized around the 106.00 dollar mark. The Brent-WTI spread thus increased to almost 13 dollars.

In our report yesterday afternoon we said that the bullish effect of the technical indicators has been used up. This can be seen today when looking at the lines of the Stochastic indicator that are converging at the ICE charts and have crossed for WTI, giving investors a selling signal and encouraging some profit taking. As we still exclude the WTI contract from our considerations we regard the technical constellation today as neutral. Even though the upward correction as a result of last week's losses seems finished and the downtrend continues, we expect the traders to cover some of their short positions. Selling signals could possibly be triggered once prices fall below yesterday's lows or the Stochastic indicator's two lines cross.

U.S.

Nymex neutral: After their hefty losses during the session in New York on Monday, oil prices keep in a narrow range in Asian trading and Globex computer trading this morning. The traded NYMEX volume is about on average for this time of day. Market players are waiting for European markets to open, for new signals from forex trade and the release of a few economic indicators. The API report on US petroleum inventories will also be in the centre of attention.

Houston (ex-wharf indications 12-11)
380cst $589
180cst $658
MGO $975

New Orleans (ex-wharf indications 12-11)
380cst $591
180cst $642
MGO $978

Singapore

Crude is bearish, loosing with WTI -$1.55. Singapore paper is bearish with -$6.25 for 180cst and -$5.25 for 380cst for Nov, and for Dec 180 cst -$6.00 and 380cst -$6.00 with MGO contracts Nov -$0.66 and Dec -$0.48. The cargo market is mixed with 180 cst +$0.41 380cst -$0.84 and MGO -$0.01.

380cst $592
180cst $596
MGO $890

Fujairah (delivered indications 13-11)

380cst $610
180cst $654
MGO $970

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $575
(1.0 %) :$595
180cst: $605
(1.0 %):$ 625
MGO 0.1%S: $ 855