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U.S. oil prices extended gains this morning on an unexpected stockpile draw and higher gasoline prices, while international crude markets were lagged slightly on the back of low Asian economic growth expectations.

Oil futures at ICE and NYMEX tended to the downside on Tuesday morning on slightly bearish fundamentals and fresh selling signals of the Stochastic indicator. At first, oil prices remained in a narrow range but in the course of the afternoon they edged lower - particularly at the ICE. When ICE futures broke below the MA21, some downward potential was generated. At the WTI chart, this support remained strong, though. Oil futures at NYMEX were temporarily weighed down by news on the White House opposing a bill on the lifting of the crude oil export ban. Later in the evening, the API's bullish data on US oil inventories bolstered WTI, though. Moreover, there were news on record distillate stocks in Europe which is why Gasoil futures didn't keep track of Brent and WTI's upward move. Crude oil and gasoline futures eventually settled in the black whereas distillate futures in London and New York marked some losses.

ICE Gasoil contract for October delivery settled at 457.00 USD on Tuesday, this is -7.25 USD below Monday's settlement. With some 84,200 deals the traded volume (front month) was far above average.

The selling signal the Stochastic indicator gave at the WTI chart on Tuesday has meanwhile waned whereas the indicator is still bearish at the Brent and the Gasoil chart. However, the selling signals were generated yesterday already and so they have lost some of their impact. Even so, the Stochastic indicator might renewedly give a bearish signal at the WTI chart in the course of the day if its lines cross. Fresh selling signals would also be generated if the MA7 and the MA21 cross. The bearish bias of the technical constellation might thus increase in the course of the day. However, we are still assessing the constellation as neutral to bearish for the time being.

U.S.

Nymex above average: After Tuesday evening's price increase, oil futures lost some ground this morning. The high Gasoil inventories in Europe reported by data provider Genscape are weighing on prices whereas the API's data provide some support. Investors are waiting for the European financial and forex markets to open and for a raft of economic indicators that are on the agenda today. They are also eying the DOE's data on US petroleum stockpiles due at 4.30 p.m. tonight.

Forecast: Crude oil +1.1; Distillates +0.9; Gasoline -0.2 million barrels vs previous week.
API: Crude oil -3.1; Distillates +3.1; Gasoline +0.5 million barrels vs previous week.

Houston (ex-wharf indications 16-9)
380cst $223
180cst $290
MGO $481

New Orleans (ex-wharf indications 16-9)
380cst $232
180cst $286
MGO $462

Singapore (delivered indications 16-9)

WTI is bullish with +$0.69. Singapore paper is up with +$4.85 for 180cst with +$4.25 for 380cst for Oct, and for Nov 180 cst +$4.55 and 380cst with +$4.75 with MGO contracts Oct gaining with +$0.45 and in Nov with +$0.47. The cargo market is bearish with 180cst -$3.66, 380cst with -$1.88 and MGO with -$0.85.

380cst $230
180cst $239
MGO $440

Fujairah (delivered indications 16-9)

380cst $238
180cst $259
MGO $549

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $219
MGO 0.1%S: $429