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Oil prices soared nearly 6% in Europe trade on Tuesday, on news that oil ministers from top producers Saudi Arabia and Russia will meet in Qatar later in the day, fueling speculation of a coordinated cut in crude output.

After the US holiday on Monday trading volumes notably increased on Tuesday. Reports on a scheduled meeting between Saudi Arabia, Qatar, Venezuela and Russia only roiled the market after the NYMEX product contracts had settled on Monday. That is why oil futures kicked off Tuesday with a sharp rise. Market players covered their short-positions to prepare themselves for a possible accord between major oil producers to reign in oversupplies. However, the countries which met on Tuesday disappointed investors' expectations as they only agreed upon freezing output at January levels. Under the condition that further OPEC-producers follow suit. The bottom line is that output would thus be maintained on record levels. Iran's oil minister, Bijan Zanganeh, had already explained Tuesday afternoon that Tehran wouldn't give up any market shares. Oil futures thus slumped in the afternoon, breaking below Monday's lows and settling near their fresh lows. The lines of the Stochastic indicator converged at the WTI chart this morning. However, they haven't crossed yet. If the black line significantly drops below the red line, a selling signal would be generated. At the Brent and the Gasoil chart the Stochastic indicator has already given off a selling signal. The technical upside seems to be limited this Wednesday as the bullish signals have already lost their impact. The fresh selling signals of the Stochastic indicator at the ICE charts favor tests of the downside which is why we assess the technical constellation as neutral to bearish.

ICE Gasoil contract for March delivery settled at 305.75 USD on Tuesday, this was 6.75 USD above Monday's settlement. With some 89,700 deals, the traded volume (front month) was above average.

Neither the Stochastic indicator, nor the RSI are able to generate fresh buying signals. The Stochastic indicator still has a slightly bullish impact on prices after it had exceeded 50%. However, its impact is constantly waning. WTI was able to break above the 21-period moving average, providing more upside at least for the US crude oil contract. When oil futures broke above Friday's highs, technical stop-loss buying orders were triggered. In this case, investors covered their short-positions. This trend might continue as the technical upward potential above the 7- and the 21-period moving averages only ends near the upper Bollinger Band. Even though there currently aren't any fresh cues, the technical constellation can still be assessed as slightly bullish.

U.S.

Nymex above average: Oil futures kept track of their losses in early electronic trading this morning, testing Tuesday's lows as freezing oil output at January levels is not considered an effective measure to reduce oversupplies. The traded volume at NYMEX is above average this morning. Market participants are now waiting for the European financial and forex markets to open as well as for the release of a raft of economic indicators, and comments on the meeting between Venezuela, Iran and Iraq. Besides, the FOMC is going to publish its meeting minutes this evening and the API's data on US oil inventories is due as well.

Houston (ex-wharf indications 17-2)
380cst $137
180cst $212
MGO $342.50

New Orleans (ex-wharf indications 17-2)
380cst $145
180cst $189
MGO $330

Singapore (delivered indications 17-2)

Brent is losing sharply with -$3.26 for Apr contracts. Singapore paper is following with -$19.00 for 180cst with -$18.00 for 380cst for Feb, and for Mar 180cst +$11.00 and 380cst with +$11.00 with MGO contracts Feb with +$2.01 and in Mar with +$1.89 .The cargo market is gaining with 180cst +$1.52, 380cst with +$2.76 and MGO with +$1.88.

380cst $166
180cst $173
MGO $299

Fujairah (delivered indications 17-2)

380cst $201
180cst $214
MGO $391

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $142
MGO 0.1%S: $286