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Crude oil prices rose in Asia this morning as an industry group reported a drop in U.S. oil stocks, while tensions in Ukraine also lent support.

After Monday's losses, oil futures at ICE and NYMEX edged higher on Tuesday morning. They were fostered by the steady euro, which was buoyed by convincing economic data out of the Eurozone, and by the ongoing crisis in Ukraine. Market participants still avoid short positions due to this crisis. The technical constellation turned slightly bullish, too, Tuesday morning, favoring a rise in oil prices in the first half of the day. Still, oil futures failed to exceed their current downtrends. Thus, the price increase at oil markets didn't last and oil futures pulled back from their highs. Whilst market players expect this week's data on US oil inventories to show new record highs in crude oil stocks throughout the USA, analysts presume that crude oil inventories in Cushing remain scant. Morgan Stanley analysts anticipate that crude oil stocks at the WTI delivery hub might shrink to a minimum in the coming weeks. That is why WTI showed a far steadier tendency than the other contracts Tuesday afternoon. According to the majority of analysts, market players yesterday focused on the extremely low inventories in Cushing. After our submission date, the EIA released its monthly energy report. Moreover, the API released its report on US oil stocks. These didn't provide homogenous cues, however.

ICE Gasoil contract for May delivery settled at 900.25 dollars on Tuesday. This was +2.25 USD above Monday's settlement. With some 35,200 deals, the traded volume was below average.

The technical constellation is still giving mixed cues. Whilst the situation turned slightly bullish in the course of Tuesday morning, the stochastic indicator is now giving selling signals again at the ICE charts as its lines have crossed. Against the backdrop of the latest news regarding crude oil stocks in Cushing, which lead to a differing development of WTI futures, in our technical assessment we focus on ICE futures today. The selling signals of the stochastic indicator are pointing to further tests of the downside this morning favoring profit taking. After the indicator often changed over the past few days, we are currently still assessing the technical constellation as neutral. More technical downside might be generated if quotations fall below yesterday's lows. Then, the technical selling pressure should renewedly increase making oil futures approach the levels near 106.85 USD Brent, resp. 895.75 USD Gasoil.

U.S.

Nymex on average: Oil futures have gained some ground in electronic trading this morning, despite the disappointing HSBC purchasing manager index for the Chinese service sector. Prices are following WTI's gains. The US crude oil contract steadied due to the comments of Morgan Stanley analysts and the release of the API's data. The traded volume at NYMEX is on average at this time of day. Investors are now eying stock and forex markets, the developments in Ukraine as well as today's economic indicators and the DOE's report on US oil inventories, due at 4.30 p.m. this afternoon.

API: Crude oil -1.8; Distillates +0.8; Gasoline +2.4 million barrels vs previous week.
DOE: Due out tonight.
Forecasts: Crude oil +1.0; Distillates +0.7; Gasoline -0.9 million barrels vs previous week.

Houston (ex-wharf indications 7-5)
380cst $600
180cst $682
MGO $976

New Orleans (ex-wharf indications 7-5)
380cst $607
180cst $662
MGO $979

Singapore (delivered indications 7-5)

WTI is up with +$0.88. Singapore paper is up with +$2.50 for 180cst and +$2.50 for 380cst for May, and for Jun 180 cst +$2.25 and 380cst +$1.00 with MGO contracts slightly bearish May -$0.62 and Jun -$0.68. The cargo market is bearish with 180 cst +$1.13, 380cst -$0.45 and MGO -$0.57.

The Singapore fuel oil prices were trading around parity between -$0.5 to +$1.0 during the Platts window yesterday. There is some level of short term tightness heard in the market due to congestions and cargo works in the terminal. The delivered bunker premiums were seen at $5.50-4.00 above cargo prices yesterday.

380cst $589
180cst $605
MGO $923

Fujairah (delivered indications 7-5)

380cst $600
180cst $635
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $575
(1.0 %) : $615
180cst: $615
MGO 0.1%S: