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WTI oil futures traded near a one-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.

Oil prices tended to the upside at the oil market in London and New York on Tuesday morning. After Monday's long term lows prices increased as market players went short in the first half of the day. Technical buying orders were generated by the breach of first resistances and lead to a technical increase. Buying pressure eased in the early afternoon after the release of disappointing U.S. economic data and prices returned from their intraday highs. But the indicators released later in the day came out better than expected and helped prices to recover. Furthermore, market players regarded the expected draw in U.S. product stocks as bullish. The API's figures released in the late evening confirmed this impression as the decrease in product stocks was more important than expected. Oil's rise continued into the night so that futures at ICE and NYMEX settled higher near fresh intraday highs.

ICE Gasoil contract for November delivery settled at 739.75 USD on Tuesday, this is 2.00 USD above Monday's settlement. With some 40,600 deals the traded volume (front month) was below average.

The stochastic indicator at the WTI and Gasoil chart changed direction because of yesterday's price increase and gives off bullish signals to the market players by the crossing of its lines, while the indicator at the Brent chart is to be interpreted still neutral. But a confirming buying signal could be generated as soon as the indicators lines cross effectively for Brent. The RSI at ICE and NYMEX stays neutral and has no chance to trigger any technical signals, Prices breached several important resistances lines on their way up, generating fresh upside. Oil prices consolidate for the time being and only if the 87.20 USD Brent mark and the 746.50 USD Gasoil mark are breached will more upside be produced. We consider the technical constellation slightly bullish for the time being because of the fresh buying signals at the WTI and Gasoil chart which could become stronger as soon as Brent's stochastic indicator confirms this signal.

U.S.

Nymex above avarage: Futures at ICE and NYMEX followed their bullish tendency after API's data release and also the stochastic indicator's first buying signals at the Gasoil and the WTI chart in the early morning. The traded volume at NYMEX is above 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 3.30 p.m., one hour earlier than usual.

Forecast: Crude oil +3.8; Distillates -1.5; Gasoline -0.7 million barrels vs previous week.

API: Crude oil +3.2; Distillates -3.0; Gasoline -3.7 million barrels vs previous week.

Houston (ex-wharf indications 29-10)
380cst $464
180cst $565
MGO $837

New Orleans (ex-wharf indications 29-10)
380cst $490
180cst $528
MGO $836

Singapore (delivered indications 29-10)

WTI is gaining with +$0.66 Singapore paper is up with +$4.50 for 180cst with +$5.00 for 380cst for Nov, and for Dec 180 cst +$4.50 and 380cst with +$4.85 with MGO contracts Nov neutral with +$0.95 and in Dec gaining with +$0.94. The cargo market is gaining with 180cst +$1.55, 380cst with +$2.23 and MGO with +$0.08.

The Singapore fuel oil prices extended gains by nearly $2.5 during the Asian Platts window yesterday tracking the crude values. The delivered bunker premiums came off to around $6.0 above cargo prices.

380cst $470
180cst $488
MGO $729

Fujairah (delivered indications 28-10)

380cst $485
180cst $540
MGO $940

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $459
(1.0 %) : $479
MGO 0.1%S: $728