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WTI oil futures held above the $50-level this morning, but gains were likely to remain limited amid expectations weekly supply data due later in the session will show U.S. crude inventories rose to the highest level on record last week.

Oil futures at ICE eased in early trading on Tuesday following fundamental and technical slightly bearish guidelines. Bullish factors finally predominated and futures breached their first resistances until midday. Brent surpassed once again its 61.00 USD mark but wasn't able to breach its psychological resistance at 62.00 USD. The new attacks on Libyan oil installations which endanger the oil production of Libya had a supporting influence on oil futures as well as the news from Genscape which indicated that US crude oil stocks in Cushing increased more slowly than they did in the last few weeks. The API's figures which were released at 10.30 pm hardly influenced oil futures. While the lower than expected increase in US crude oil stocks is to be interpreted as slightly bullish the change in product stocks is rather to be interpreted as bearish. Futures finally settled slightly higher in London and New York on Tuesday.

ICE Gasoil contract for March delivery settled at 585.25 USD on Tuesday, this is +0.75 USD above Monday's settlement. With some 40,800 deals the traded volume (front month) was below average.

The stochastic indicator at ICE is still slightly bearish after Brent's indicator also dropped below the 50 line. WTI's indicator stays slightly bullish as its lines still diverge. Therefore, we consider the technical constellation still as neutral to bearish this morning. WTI's high from Tuesday could be a decisive factor concerning further upward potential. If WTI doesn't breach this high a divergence will be generated between the price and the stochastic indicator and then technical bearish factors will predominate at ICE.

U.S.

Nymex above average: Oil futures at ICE and NYMEX currently consolidate without direction on their yesterday's levels. The traded volume at NYMEX is slightly above average at this time of the day. Market players are waiting for the European financial and the forex markets to open, for news concerning the strikes at US oil refineries an Iranian nuclear negotiations and the economic indicators that are on the agenda today, as well as for the US oil inventory report as per DOE which is to be released this afternoon at 4.30 pm.

Forecast: Crude oil +4.6; Distillates -2.6; Gasoline -1.8 million barrels vs previous week.
API: Crude oil +2.9; Distillates -0.3; Gasoline +0.5 million barrels vs previous week.

Houston (ex-wharf indications 4-3)
380cst $339
180cst $451
MGO $665

New Orleans (ex-wharf indications 4-3)
380cst $362
180cst $389
MGO $674

Singapore (delivered indications 4-3)

WTI is gaining with +$0.54. Singapore paper is up with +$1.00 for 180cst with +$2.25 for 380cst for Mar, and for Apr 180 cst +$1.75 and 380cst with +$3.10 with MGO contracts Mar with +$0.90 and in Apr with +$0.84. The cargo market is bearish with 180cst -$13.86, 380cst bearish with -$11.91 and MGO bullish with -$2.14.

380cst $346
180cst $370
MGO $573

Fujairah (delivered indications 4-3)

380cst $362
180cst $389
MGO $758

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $318
MGO 0.1%S: $568