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WTI oil prices edged higher this morning, as traders 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 futures at ICE and NYMEX continued their Monday's correction movement on Tuesday morning and increased slightly. We already indicated in yesterday's early morning news that Monday's highs represent key resistances from a technical point of view. The slightly bullish stochastic indicator stays without important signals and the fundamentally bearish technical constellation caused losses in the course of the day as these resistances couldn't be breached. The news which indicated that the Iraq and Kurdistan achieved an agreement which will lead to an increase in Iraqi crude oil production and exports, weighed also on the futures. The euro breached its technical short-term triangle by its lower limits in the course of the day favouring oil market's downward movement. These movements continued until late trading and finally futures settled considerably lower in London and New York. The US oil inventory report as per API which was released last night at 10.30 p.m. was bullish but triggered only a short-lived upward movement.

ICE Gasoil contract for December delivery settled at 641.00 USD on Tuesday, this is 5.75 USD below Monday's settlement. With some 57,200 deals the traded volume (front month) was about on average.

The RSI already indicated on Monday that it will lose its influence. The indicator dropped again below the 30 line and finally absorbed its bullish influence. A fresh buying signal might only be triggered if the RSI crosses the 30 line again. The stochastic indicator stays slightly bullish. Its lines keep diverging after Monday's buying signals and are to be interpreted still bullish. But the indicator's divergence was confirmed by yesterday's fall in prices. That's why the indicator lost its supporting influence which can develop again only if yesterday's highs are sustainably breached. Therefore, we consider the technical constellation as neutral this morning.

U.S.

Nymex above avarage: Futures eased this morning in Asian trading but rebounded from their first supports at the beginning of electronic trading. The traded volume at NYMEX is far above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots and the economic indicators which are to be released today as well as the DOE data to be released this afternoon at 4.30 p.m.

Houston (ex-wharf indications 03-12)
380cst $406
180cst $511
MGO $779

New Orleans (ex-wharf indications 03-12)
380cst $429
180cst $489
MGO $772

Singapore (delivered indications 03-12)

WTI is losing with -$1.17 Singapore paper is down with -$11.00 for 180cst with -$9.50 for 380cst for Dec, and for Jan 180 cst -$9.00 and 380cst with -$6.75 with MGO contracts Dec bearish with -$1.40 and in Jan with -$1.36. The cargo market is gaining with 180cst +$14.70, 380cst with +$14.88 and MGO with +$3.55.

380cst $445
180cst $455
MGO $665

Fujairah (delivered indications 03-12)

380cst $425
180cst $462
MGO $880

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $375
(1.0 %) : $385
MGO 0.1%S: $623