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Oil futures gave back some of the previous session's gains this morning to trade near the lowest level since 2009 amid ongoing concerns over ample global supplies.

Oil futures at ICE and NYMEX marked near fresh 5-year-lows on Tuesday morning and followed their fundamental and technical bearish guidelines. We already indicated in our early morning news that the short covering could support the futures at the beginning of the week after their sharp price drop. Many traders used the long-term lows to ensure gains from their short positions in the course of the day which let futures increase. But the resistances at 67.00 USD Brent, 64.00 USD WTI and 606.00 USD Gasoil limited further increase which was also favoured by the stronger euro/dollar parity. There were no fundamental signals yesterday which could have indicated a change in direction. The monthly EIA report in which they considerably revised down price forecasts for 2015 was released on Wednesday evening after FS office hours The API released its US oil inventory report in late trading. This report was surprising with considerable increases in crude oil and oil products and is therefore to be interpreted bearish. Finally, the futures weren't able to breach their resistances and eased until this morning again.

ICE Gasoil contract for December delivery settled at 604.00 USD on Tuesday, this is 2.50 USD above Monday's settlement. With some 49,400 deals the traded volume (front month) was slightly below average.

The lines of the stochastic indicator at the Gasoil chart crossed this morning and are bullish therefore. But as there is an upcoming expiry of Gasoil's front month tomorrow the indicator could be blurred due to the consolidation of short positions. Therefore, confirming sign at the Brent and the WTI chart are expected which are still missing. The lines of the stochastic indicator already converge or rather are already parallel so that the indicator lost its bearish influence for the time being. Buying signals will only be triggered if the lines cross sustainably. A bullish signal might be triggered at the RSI if this indicator surpasses the 30 line. We consider the technical constellation as neutral without a confirmation of the buying signal and due to the downtrends which are still intact.

U.S.

Nymex above avarage: The API's and the EIA's figures weighed in the futures during the night while currently slight short covering is be seen due to which futures rebound from their former day lows. The traded volume at NYMEX is 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 are waiting for the official US oil inventory report as per DOE which is to be released at 4.30 p.m. this afternoon while no other economic indicators are on the agenda today.

Forecast: Crude oil -2.5; Distillates +1.9; Gasoline +2.6 million barrels vs previous week.
API: Crude oil +4.4; Distillates +4.3; Gasoline +6.7 million barrels vs previous week.

Houston (ex-wharf indications 10-12)
380cst $374
180cst $495
MGO $744

New Orleans (ex-wharf indications 10-12)
380cst $410
180cst $473
MGO $737

Singapore (delivered indications 10-12)

WTI is losing with -$0.32 Singapore paper is up with +$1.75 for 180cst with +$1.90 for 380cst for Dec, and for Jan 180 cst +$3.00 and 380cst with +$2.75 with MGO contracts Dec bullish with +$0.28 and in Jan with +$0.28. The cargo market is losing with 180cst -$15.87, 380cst with -$14.70 and MGO with -$2.18.

380cst $385
180cst $405
MGO $615

Fujairah (delivered indications 10-12)

380cst $380
180cst $432
MGO $860

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $354
(1.0 %) : $345
MGO 0.1%S: $585