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Crude prices gained this morning as investors continued to buy on hopes of stronger global economic growth.

Futures at ICE and NYMEX increased in the first half of the day and tested their upward potential. Resistances at 86.20 USD Brent and at 738.50 USD Gasoil almost coincide with the 7 day moving average and therefore these resistances will be hard to breach. As there were no technical buying ordres at this time futures returned from their intraday highs after rebounding from these resistances. After the opening of the U.S. market new technical buying interest was created. After WTI breached its intraday highs in the afternoon and the RSI surpasssed the 30 line short after, technical buying signals were also triggered at the ICE. So far stable resistances therefore were breached effectively, which triggered confirming buying signals at Brent's and Gasoil's RSI. The increase was probabely favored by the expiry of WTI's front month and the therefore more volatile market environment. The soft euro affected the oil market at the same time and provoked short-term profit taking from long positions of investors outside the United States. But tendency stayed firm thanks to the technical buying signals so that the futures at the ICE settled higher at fresh intraday highs.

ICE Gasoil contract for November delivery settled at 735.75 USD on Tuesday, this is 4.25 USD above Monday's settlement. With some 57,900 deals the traded volume (front month) was above average.

The RSI provoked a buying signal by its breach of the 30 line and still is bullish this morning. The stochastic indicator at ICE and NYMEX is only slightly bullish, as the indicator crossed the 50 line from bottom to top but its lines are converging again. Yesterday's breach of resistances of the downward channels at the ICE there opens more downside from a technical point of view, but there are new key resistance zones at 86.50 USD to 86.70 USD Brent and at 743.25 to 744.75 USD Gasoil. Fresh support lines have formed, indicating the formation of a new short term upward trend with key supports at 737.00 USD Gasoil and at 85.85 USD Brent. Apart from that a technical triangle has formed at the WTI chart and one has to wait and see in which direction prices leave the triangle. We consider the technical constellation bullish for the time being because of the signals of the stochastic and the RSI indicator and because of the breach of yesterday's resistances.

U.S.

Nymex above avarage: Without any direction and impulses prices consolidate currently on a high level after yesterday evening's late increase. The traded volume at NYMEX is about on average at this time of the day. Market players are waiting for the European financial and the exchange market to open and will eye the situation in the geopolitical hotspots and the economic indicators to be released today as well as the DOE data to be released at 4.30 p.m.

Forecast: Crude oil +3.0; Distillates -1.5; Gasoline -1.5 million barrels vs previous week.
API: Crude oil +1.2; Distillates -0.8; Gasoline -0.5 million barrels vs previous week.

Houston (ex-wharf indications 22-10)
380cst $467
180cst $575
MGO $852

New Orleans (ex-wharf indications 22-10)
380cst $468
180cst $569
MGO $850

Singapore (delivered indications 21-10)

No news today due to national holiday.

380cst $485
180cst $499
MGO $735

Fujairah (delivered indications 21-10)

380cst $487
180cst $540
MGO $945

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $458
(1.0 %) : $483
MGO 0.1%S: $733