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Crude oil prices dipped early in Asia this morning on bearish industry data on U.S. oil inventories.

Oil futures at ICE and NYMEX followed once more the fundamentally bearish market sentiment and eased already in the first half of the day on Tuesday. They breached further important support, e.g. the 60.00 USD mark Brent and the 55.00 USD mark WTI. That's why technical selling pressure increased as well. The comments of the Russian oil minister, Alexander Novak, who announced that Russia won't cut its production next year as they don't want to lose their market shares in the international competition, weighed on the futures as well. Oil futures expanded their long-term lows and the benchmarks Brent and WTI got as cheap as they weren't since May 2009. The expiry of Brent's front month and the maturity of WTI options brought some volatility into late trading. Some market players which engaged in falling prices served these positions by buying orders. Futures compensated a part of their losses by the outcoming increase but finally settled lower. The US oil inventory report as per API which was released last night was bearish. Therefore, selling pressure increased again and yesterday's long-term lows might come into reach again.

ICE Gasoil contract for January delivery settled at 551.00 USD on Tuesday, this is 4.75 USD below Monday's settlement. With some 80,100 deals the traded volume (front month) was far above average.

The stochastic indicator at the WTI chart gives first buying signals after its lines crossed. There are still no confirming signals at the Brent or the Gasoil chart but they could still follow. The oversold constellation which is shown by the RSI and by the Stochastic indicator would favour a technical upward movement. While the stochastic indicator at the WTI chart indicates a bullish tendency, downtrends stay intact offering some margin for little upward corrections. Confirming signals at the Brent and the Gasoil chart might strengthen the buying pressure. Due to this and due to the buying signal at the WTI chart we consider the technical constellation this morning as neutral to bullish, even though the bullish potential is still limited.

U.S.

Nymex above avarage: The supporting signal caused by short covering which was due to the expiry of Brent's front month and the maturity of WTI options, seems to be absorbed again. The futures gave back some of their gains after the release of the API's figures last night. 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 and the announcement of the result of the FOMC's meeting tonight.

Houston (ex-wharf indications 17-12)
380cst $326
180cst $447
MGO $692

New Orleans (ex-wharf indications 17 -12)
380cst $343
180cst $438
MGO $693

Singapore (delivered indications 17-12)

WTI is losing with -$0.47. Singapore paper is down with -$4.75 for 180cst with -$4.85 for 380cst for Dec, and for Jan 180 cst -$4.15 and 380cst with -$4.25 with MGO contracts Dec bearish with -$0.56 and in Jan with -$0.56. The cargo market is losing with 180cst -$18.09, 380cst with -$19.38 and MGO with -$2.82.

380cst $333
180cst $348
MGO $568

Fujairah (delivered indications 17-12)

380cst $330
180cst $378
MGO $855

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $303
(1.0 %) : $313
MGO 0.1%S: $528