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Oil prices fell this morning as concerns about the global economy exacerbated worries that an oversupply of crude could last longer than expected.

After the sharpest 3-day rise since 1990, oil futures took a breather on Tuesday morning. Many investors had panicked in the past few days, eagerly cutting their short-positions as a meeting between OPEC-members and Russia was scheduled and EIA downwardly revised its own forecasts on US oil production. Disappointing economic indicators weighed on oil prices. Even so, futures stabilised on a high level at first. Experts said the reaction on the latest bullish news had been exaggerated. The revision of the data on US oil production wasn't enough to considerably change the current situation of oversupplies. Moreover, Russia made clear that it wasn't inclined to reduce its oil production. Oil futures thus renewedly tended to the downside, whilst investors were waiting for the release of the API's report on US oil inventories. This report showed massive builds in US crude oil stockpiles and so, selling pressure persisted overnight. Oil futures thus erased Monday's gains.

ICE Gasoil contract for September delivery settled at 481.75 USD on Tuesday, this is -4.00 USD below Monday's settlement. With some 62,300 deals the traded volume (front month) was above average.

The lines of the Stochastic indicator have crossed and so the indicator gives a bearish signal at ICE and NYMEX charts. The overbought constellation favours downward moves, pointing to an increasing technical selling pressure. Monday's lows and the GD21 might serve as key-supports. If futures drop below these markers, further downward potential might be generated and investors are likely to raise their short-positions. Over all, the technical constellation is bearish this morning given the selling signals of the Stochastic indicator, even though the key-supports might limit the downside.

U.S.

Nymex above average: Oil futures kept track of their downside this morning in Asian and electronic trading after Tuesday's losses. They were testing their downside, trading near Tuesday's lows. The traded NYMEX volume is far above average at this time of day. Market participants are now waiting for the European financial and forex markets to open as well as for the release of today's economic indicators. Besides, the DOE will release its report on US oil inventories at 4.30 p.m. this afternoon.

Forecast: Crude oil +0.1; Distillates +1.2; Gasoline -1.5 million barrels vs previous week.
API: Crude oil +7.6; Distillates +0.3; Gasoline -1.0 million barrels vs previous week.

Houston (ex-wharf indications 2-9)
380cst $236
180cst $344
MGO $484

New Orleans (ex-wharf indications 2-9)
380cst $258
180cst $303
MGO $477

Singapore (delivered indications 2-9)

WTI is bearish with -$3.28. Singapore paper is down with -$16.70. for 180cst with -$16.75 for 380cst for Sep, and for Oct 180 cst -$16.70 and 380cst with -$16.20 with MGO contracts Sep losing with -$3.00 and in Oct with -$2.99. The cargo market is bullish with 180cst +$18.11, 380cst with +$19.92 and MGO with +$3.11.

380cst $246
180cst $254
MGO $443

Fujairah (delivered indications 2-9)

380cst $264
180cst $294
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $243
MGO 0.1%S: $453