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Technical indicators: neutral to bullish

Oil futures have traded slightly lower during morning trade in the wake of the development at Asian markets. Large builds in gasoline stocks according to the API 's data and a lower US gasoline demand also weigh on oil prices. Losses should be limited, however, ahead of the DOE's data to be published in the afternoon. If the energy department confirms the API 's figures, there will probably be considerable price reductions .

After ICE futures and the heating oil in New York had traded sideways in a narrow range in electronic morning trading, prices surged during NYMEX session, breaching several resistance lines in the process. Strong equity markets pulled the oil complex up, despite disappointing US economic indicators. But positive data from China and optimism that Fed chief Ben Bernanke will announce new stimulus measures to help the US economy at the central bank's meeting on Friday lent support. The endless fighting in Libya also gave markets some bullish momentum. The crude oil in New York had started rising already in the morning on a weaker dollar but shed most of its gains later in the day before following ICE futures back up.

ICE gasoil for September delivery settled at 930.75 dollars on Tuesday. This was 15.25 dollars above Monday's settlement. With some 74,400 contracts the traded volume was above average.

The stochastic indicator at the NYMEX and ICE charts is seen bullish this morning after having given a buying signal yesterday, while the RSI is not giving any clear signals but retreated from the 70% line. After several resistance lines were breached Tuesday, the technical uptrends are intact. Yet analysts reckon that the technical aspects will be pushed in the background by the fundamentals today. The first support for the WTI crude is seen at 84.00 dollars, its first resistance at 86.40 dollars. The Brent's first resistance is seen at 110.00 dollars, its first support is at 107.20 dollars .

U.S.

Nymex Access losing: Oil futures lost ground in East Asia and Globex electronic trading this morning, weighed down by bearish API data. The traded volume is below average. Investors anticipate the release of DOE later today .

APIs: crude oil -3.3; distillates +2.0; gasoline +6.4 million barrels vs previous week. Refinery utilization +1.8%

DOE's: due out tonight

Forecasts: crude oil +0.7; distillates +0.5; gasoline -1.0 million barrels vs previous week.

Houston (ex-wharf indications 23-8)

380 cst $618
180 cst $653
MDO $934

New Orleans (ex wharf indications 23-8)

380 cst $621
180 cst $656
MDO $937

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

Crude is losing some of its recent gains, cooling with WTI -$0.80. Singapore paper is not yet turning, slowing as well with +$3.95 for 180cst and +$3.45 for 380cst for Sep, and for Oct 180 cst +$2.55 and +$3.30 for 180cst with MGO Sept contracts at +$0.05 and for Oct at +$0.06. The cargo market is bullish still, gaining with 180cst +$15.59, 380cst +$15.01 and MGO +$2.20.

The Singapore fuel oil markets were up by +$15.0/mt following stronger crude values during the Platts window. Demand was muted on the higher prices and the delivered bunker premium fell to $8.25/mt above cargo prices. Bunker swaps strengthened by approx. $10/mt. for the front month. Prices at the backend of the curve were not as strong gaining approx. $2-3/mt less. A broadened backwardation of the forward curve helps keeping backend prices relatively attractive. Both markets are trading slightly up this morning.

High premiums for prompt deliveries.

380 cst $648
180 cst $652
MDO $904

Fujairah (delivered indications 24-8)

380 cst $659
180 cst $681
MDO $1068

Rotterdam

Yesterday in the MOC hsfo was traded between 615.50-617.25 usd and lsfo at 642 usd.

Indications for delivered bunkers:

380cst : $ 623
(1.0 %) :$ 652
180cst: $ 653
(1.0 %):$ 687
MGO 0.1%S: $ 940