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Technical indicators: neutral to bullish

Oil edged higher this morning, with investors cautious ahead of expected monetary easing from the US Federal Reserve, capping gains from an apparent upwards shift in price tolerance among OPEC ministers.

Crude oil prices rose sharply Monday, topping 83 dollars per barrel after China said manufacturing activity rose in October. Oil market than declined slightly after US Personal Income and Spending, but rose again after bullish ISM Manufacturing Index and Construction Spending.

ICE Gasoil November is expected to open 0.00 to 1.50 dollars up at about 713.00 dollars/ton after settling at 712.25 dollars (official settlement price) Monday night. This was +11.50 dollars vs Friday's settlement. Volume with some 41,600 deals slightly below average.

Oil prices are still withing the technical trading range and are expected to consolidate some more today as the resistance line arround 84.00 dollars is still seen very strong. RSI remains neutral and Stochastics indicator gives bullish signals again. Should this important resistance line be breached, many buying orders will be triggered. First WTI crude support line seen at 82.25 dollars today, first resistance line at 83.90 dollars. U.S.

Nymex Access : Oil prices rising slightly due to weaker dollar in early trading hours this morning. No further news in the markets. Traded volume is above average.

Survey of US petroleum inventories:

API data will be released Today at 22:30, DOE data Wednesday at 16:30. crude oil +1.2; distillates -0.8; gasoline +0.2 million barrels vs previous week. Refinery utilization: +0.3%

U.S

Houston (ex-wharf indications 1-11)

380cst: $467
180cst: $487
MGO: $755

Very tight avails for 180cst

New Orleans (ex-wharf indications 1-11)
v 380cst: $469
180cst: $489
MGO: $758

Singapore (correct as of 1430hrs local time)

Crude continious to strengthen with WTI +$1.57. Singapore paper is now reacting to the bullish sentiment with 180cst +$6.00 and 380cst +$5.65 for Nov, and Dec 180 cst +$5.90 and 380cst +$5.85 with MGO Nov contracts +$1.80 and for Dec at +$1.80. The cargo market is reflecting last week's sentiment with 180cst -$0.18, 380cst -$1.02 and MGO +$0.12.

The Singapore fuel oil markets fell marginally ranging from flat to -$1.0/mt during the Platts window. The front intermonth spread have strengthened on strong buying interest. The delivered bunker premiums were more than $3.0 above cargo prices yesterday on short term logistical tightness in the terminals.

High premiums for prompt deliveries:

380cst: $475
180cst: $486
MGO: $708

Fujairah (delivered indications 2/11)

380cst: $479
180cst: $502
MGO: $735

Rotterdam

Yesterday (Only barge trade deals of >2 KT reported) 108KT was traded between 458.50-461 with Petroned now as the main seller to Totsa and Litasco as the main buyers.

Mainly due to resurfacing end users demand, the NWE HSFO is back into normal backwardation. The values were tracking the jump in crude. The Eastern arbitrage remained unworkable, with no fixtures reported. The HSFO Med market is not attracting any influx as the local market remains slow. The NWE LSFO markets continue to see imports out of the Americas, keeping them long.

380cst: $463
(1.0%): $486
180cst: $483
(1.0%): $505
DMB: N/A
MGO 0.1%S: $719