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Technical indicators: bullish

During morning trade, oil futures have traded sideways on a high level. US oil inventories according to the API have shown surprisingly high draws in crude oil. As the API stated Tuesday evening, crude stocks decreased by 5.2 million barrels. Analysts expected only draws of approximately 1.7 million barrels.

Oil futures traded sideways in a tight range early Tuesday morning. Market participants then particularly expected foreign exchange to provide for some impetus setting a tendency. With the dollar retreating until afternoon, making dollar-traded futures cheaper for investors outside the USA , some upward potential was created regarding the oil market. Along with gaining stock exchanges oil prices eventually breached first temporary resistances in the afternoon, this upward development being reinforced by technical buying orders. Better-than-expected US data regarding construction increased investors readiness to take risks, supporting oil prices as well. Important resistance lines like the mid-term range's upper edge, however, remained untouched. Thus there was some profit taking in the course of the evening and market participants consolidated their risk positions. Around 7.30 p.m. oil futures recovered on a speech of the US ' president Barack Obama. The effects of his speech proved to be only temporary, however. Although showing no clear direction, API data, published at 10.30 p.m , were interpreted slightly bullish. As bullish impetus predominated all in all yesterday, oil futures settled higher than on Monday.

ICE Gasoil contract for August settled at 976.00 dollars on Tuesday. This was 8.50 dollars above Monday's settlement. With some 79,200 contracts, the traded volume was above average.

The stochastic indicator does not give any strong impetus this morning and is only slightly bullish for WTI Crude oil and ICE Brent. The RSI is in the neutral area, not giving any signals to the markets. Chart analysts assess the situation slightly bullish considering possible some testing of resistances in the course of the day. Further upward potential will only be created, should key resistances in the area of the medium term range be breached. The first support for the WTI crude is seen at 95.90 dollars, its first resistance at 98.65 dollars. The Brent's first resistance is seen at 118.35 dollars, its first support is at 117.00 dollars.

U.S.

Nymex Acces gaining. Oil prices edged higher during electronic morning trade. In the early morning, oil futures gained some ground, reacting on the figures the API had published last night. The volume traded at NYMEX is clearly below average. Market participants wait for the opening of the European markets, for further momentum from foreign exchange and for the DOE data to be published in the afternoon.

APIs: crude oil -5.2; distillates +1.1; gasiline +2.0 million barrels vs previous week. Refinery utilization +2.0%

DOEs: due out tonight

Forecasts: Crude oil -1.2; distillates +0.8; gasoline +/- 0.0 million barrels vs previous week.

Houston (ex-wharf indications 19-7)

380 cst $648
180 cst $679
MDO $1004

Very tight avails for 180 cst

New Orleans (ex wharf indications 19-7)

380 cst $651
180 cst $682
MDO $1008

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is bouncing up again with WTI +$1.89. Singapore paper is cautiously tracking crude with +$3.90 for 180cst and +$5.20 for 380cst for Aug, and for Sep 180 cst +$3.90 and 380cst +$5.25 with MGO Aug contracts at +$1.30 and for Sep at +$1.31. The cargo market is slowing, but bullish still with 180cst +$0.07, 380cst -$0.73 and MGO +$0.11.

The Singapore fuel oil market was down by approx. $1.0/mt at the Platts window. The market moved sideways similar to crude. The high outright prices have softened demand and supply looked ample in Singapore . The delivered premiums remained at around $6.5/mt above cargo prices. Bunker swaps lost few cents along the curve yesterday. Rotterdam papers remained slightly weaker than Singapore 180 CF loosing approx. 25 cents more. This morning markets are trading up.

High premiums for prompt deliveries.

380 cst $672
180 cst $683
MDO $978

Fujairah (delivered indications 20-7)

380 cst $683
180 cst $714
MDO $1064

ARA (Amsterdam - Rotterdam - Antwerp)

Rotterdam

Indications for delivered bunkers:

380cst : $ 656
(1.0 %) :$ 707
180cst: $ 679
(1.0 %):$ 732
MGO 0.1%S: $ 988