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Crude oil prices gained marginally in Asia on this morning on continued demand-led support, though easing tensions between Russia and the Ukraine capped gains along with higher stocks in the United States.

Quotations at ICE and NYMEX sharply declined on Tuesday morning breaching several supports. The risk premium investors had priced in on Monday was almost completely erased on Tuesday as Russia's president Vladimir Putin said that manoeuvres near the Ukrainian border were finished and troops were to go back to their home bases. During an interview around noon, Putin sounded even readier for a deescalation. The situation in the Ukraine remained the dominating topic at financial markets yesterday putting other factors into the background. Therefore, oil futures stayed softer until late in the evening settling near their intraday-lows. Since the risk premium that had been priced in on Monday was higher at ICE than at NYMEX, Brent and Gasoil lost more ground yesterday compared to futures at NYMEX. The expectations of another draw in crude oil stocks in Cushing, the delivery hub for WTI, eventually made the spread between WTI and Brent narrow to less than 6 dollars. This morning the spread amounted to about 5.70 dollars. The API's data on US oil inventories (released at 10 p.m. last night) brought no real surprises thus having no larger effect on oil markets so far.

ICE Gasoil contract for March delivery settled at 919.50 USD on Tuesday. This was -21.25 USD below Monday's settlement. With some 50,200 deals, the traded volume was slightly below average.

After the RSI gave a selling signal at the WTI chart, the stochastic indicator now also points to a selling signal at the US crude oil chart. The lines of the stochastic indicator have also met at the Brent and the Gasoil chart but so far they haven't crossed yet. Since the bearish technical constellation at the WTI chart has not been confirmed yet at the ICE charts, we assess the technical situation as neutral to bearish this morning. If the lines of the stochastic indicator at the Brent and the Gasoil chart confirm the selling signal at the NYMEX charts in the course of the day, more technical profit taking is likely.

U.S.

Nymex cooling: Futures at ICE and NYMEX are trading near yesterday's lows this morning as market players are waiting for new cues. The traded volume at NYMEX is on average for this time of day. Traders are now monitoring the development at stock and forex markets waiting for today's economic data and the development of the situation in the Ukraine. They will also focus on the DOE's data on US oil inventories due at 4.30 p.m..

Forecasts: Crude oil +1.2; Distillates -1.0; Gasoline -1.0 million barrels vs previous week.
API: Crude oil +1.2; Distillates -0.3; Gasoline -1.2 million barrels vs previous week.

Houston (ex-wharf indications 5-3)
380cst $611
180cst $682
MGO $1021

New Orleans (ex-wharf indications 5-3)
380cst $645
180cst $670
MGO $1028

Singapore (delivered indications 5-3)

WTI is bearish with-$0.55. Singapore paper is bearish with -$7.00 for 180cst and -$7.00 for 380cst for Mar, and for Apr 180 cst -$6.00 and 380cst $5.75 with MGO contracts being bearish Mar -$0.30 and Apr -$0.27. The cargo market is bearish with 180 cst -$10.18, 380cst -$8.99 and MGO -$1.35.

Singapore bunker fuel oil markets plummeted to near eight-week lows on Tuesday as Asia's residue market grappled with abundant supplies and tepid demand. Cash premiums dropped more than 80% to 25 cents a tonne for 180-cst and 22 cents a tonne for 380-cst over Singapore spot quotes.

380cst $612
180cst $622
MGO $940

Fujairah (delivered indications 5-3)

380cst0 $610
180cst $645
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

A lot of 380 LSFO avails problems in whole of ARA. Most of the suppliers are only able to offer from 9th onwards.

Indications for delivered bunkers:
380cst : $585
(1.0 %) : $653
180cst: $615
MGO 0.1%S: $893