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WTI oil futures declined this morning, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a slower pace than expected last week.

Oil prices at ICE and NYMEX rose slightly in the course of the European session on Tuesday, supported by technical movements after fresh buying signals were triggered at the ICE charts. If the news that Turkey downed a Russian warplane had not much influence on the oil market in the morning, the geopolitical risk in the region increased and therefore the incident is bullish for oil. Yet, at noon, oil prices lost some ground as bearish fundamentals weighed, trying to breach their Tuesday's lows. When they could not succeed they rebounded and tried their resistances instead. When the WTI rose above its 42.75 USD resistance (Tuesday's high), a series of technically driven buying orders was triggered. When the RSI produced an additional buying signal at the WTI chart, oil's technical rise was accelerated. As for the fundamentals, the downing of the Russian airplane and news that the restart of a Canadian refinery is delayed lent some support. As a consequence the gasoline contract at the NYMEX rallied and in its wake the other futures. In a volatile market ahead of the long Thanksgiving weekend in the U.S. operators were cautious, covering some of their short positions which also supported prices. The bearish report of the API released after office hours had no immediate influence on the oil market and therefore oil prices finished higher in London and New York.

ICE Gasoil contract for December delivery settled at 433.75 USD on Tuesday, this is 1.25 USD above Monday's settlement. With some 71,600 deals the traded volume (front month) was above average.

The RSI rose above the 30 line at the WTI chart on Tuesday reinforcing its buying signals it had triggered at the Brent and the gasoil chart the day before but part of the resulting bullish potential was meanwhile been absorbed. A short-term uptrend has formed at all charts that could lead to a price rise towards the 21-day moving average lines. As for the Stochastic, the indicator yesterday crossed the 50 line at the WTI chart, triggering more buying signals. We therefore judge the technical constellation neutral to bullish this morning but like to point out that the rising volatility ahead of Thursday's U.S. holiday might as well let prices fall.

U.S.

Nymex is above average: Oil futures extended their gains in East-Asia and in electronic Globex trade this morning targeting their Tuesday's highs, short covering and technical buying ahead of the long U.S. weekend counterbalancing the API's bearish petroleum inventory report. The traded volume at NYMEX is above average this morning. Market players are waiting for the European financial and forex markets to open today, for the release of a series of U.S. indicators in the afternoon and for the DoE's report on U.S. petroleum stocks to be released at 4.30 p.m.

Houston (ex-wharf indications 25-11)
380cst $201
180cst $286
MGO $444

New Orleans (ex-wharf indications 25-11)
380cst $212
180cst $255
MGO $458

Singapore (delivered indications 25-11)

Brent is up with +$0.50 for December contracts. Singapore paper is up with +$2.75 for 180cst with +$2.25 for 380cst for Dec, and for Jan 180 cst +$3.00 and 380cst with +$3.00 with MGO contracts Dec with +$0.11 and in Jan with +$0.19 .The cargo market is bearish with 180cst +$9.05, 380cst with +$8.81 and MGO with up +$1.45.

380cst $223
180cst $235
MGO $429

Fujairah (delivered indications 25-11)

380cst $219
180cst $254
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : 203
MGO 0.1%S: $403