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U.S. oil futures rose to a two-week high this morning, as investors awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.

The outlook of a national dialogue in Ukraine and the announced rise in Libya's oil production seemed to take some pressure from oil futures on Tuesday morning. Therefore, quotations edged lower at first. Later on Tuesday morning, market players increased their long positions as crude oil stockpiles in Cushing were renewedly expected to show a massive draw. The expected decline in Cushing crude oil inventories the operative minimum seems to get closer. Particularly US traders and refineries thus raised their long positions in WTI. The US crude oil contract finally broke above 100.80 USD generating a technical buying signal that also sent futures at ICE higher. In the course of the day, oil futures consolidated on a high level. Profit taking at ICE remained limited, too, as Libya's National Oil Corp. announced that the country's oil output hadn't increased as expected, still amounting to about 235,000 bpd. Against the backdrop of this factor and of an attack on the Ukrainian army by separatists in the east of Ukraine, oil futures even extended their gains in late trade, rising to new May-highs. The API's data on US oil inventories was released at 10.30 p.m. coming in rather bullish.

ICE Gasoil contract for June delivery settled at 906.00 dollars on Tuesday. This was +2.75 USD above Monday's settlement. With some 68,200 deals, the traded volume was clearly above average.

WTI's break above the 108.00 USD resistance generated a buying signal yesterday around noon. The stochastic indicator at ICE and NYMEX charts is slightly bullish this morning favouring further tests of the upside and so, the technical constellation can be interpreted as slightly bullish as well. Short-term uptrends have formed for Brent and Gasoil but also for WTI. Yesterday's sharp rise has spent most of oil futures' upward slack within these trends, however, and so there should be but little upward potential if the upper limits of the uptrends remain strong. Only if futures exceeded these limits would more upward potential be generated.

U.S.

Nymex below average: After yesterday's rise, oil futures consolidated on a high level this morning. The traded volume at NYMEX is slightly below average at this time of day. Market players are now monitoring stock and forex markets, awaiting news regarding Ukraine, Libya and the negotiations with Iran as well as today's economic indicators. Apart from that they are eying the DOE's data on US oil inventories.

Forecasts: Crude oil -1.0; Distillates +1.0; Gasoline +0.3 million barrels vs previous week.
API: Crude oil +0.9; Distillates +0.9; Gasoline -2.0 million barrels vs previous week.

Houston (ex-wharf indications 14-5)
380cst $605
180cst $694
MGO $981

New Orleans (ex-wharf indications 14-5)
380cst $610
180cst $662
MGO $981

Singapore (delivered indications 14-5)

WTI is up with +$0.96. Singapore paper is up aswell with +$4.75 for 180cst and +$5.00 for 380cst for May, and for Jun 180 cst +$4.40 and 380cst +$4.00 with MGO contracts being bullish May +$1.02 and Jun +$1.07. The cargo market is bullish with 180 cst +$4.40, 380cst +$4.00 and MGO +$1.07.

The Singapore markets were closed yesterday for public holiday and reopened today. The market remains largely well supplied at the moment with a possible tightening coming next month as incoming cargoes were estimated to be lower than the average at 3.12 million mt.

380cst $590
180cst $606
MGO $915

Fujairah (delivered indications 14-5)

380cst $600
180cst $638
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $580
(1.0 %) : $633
180cst: $620
MGO 0.1%S: $888