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Crude oil rose from its lowest in a year after a surprise drop in crude stockpiles and on signs the U.S. may take further steps to sustain an economic recovery.

Yesterday, oil futures at ICE and NYMEX followed their bearish trend in morning trading to hit fresh year lows in the early afternoon ahead of the openinf of NYMEX session. The WTI crude dropped to 74.95 dollars and the gasoil to 849.25 dollars. The brent hit a two-months low at 99.11 dollars. Prices rose during the session in New York after FED chief Bernanke stoked speculation that the U.S. central bank may implement a third round of quantitative easing. But the rebound was only temporary and so futures shed most of their gains towards the end of the session. Only when Wall Street rallied and the euro rose after news that European Union officials are examining how to recapitalize banks, boosting optimism the region’s debt crisis can be contained, did oil prices follow in the track.

ICE Gasoil contract for October delivery settled at 865.25 dollars on Tuesday. This was 9.25 dollars below Mondays settlement. With some 56,900 contracts the traded volume was about on average.

OPEC Even though the cartel's oil production was little changed in September compared to the previous month, it hits a year high after Libyaresumed oil production and exports. OPEC's production level in September was 30,525 mln bpd (incl. Iraq), up 7,000 bpd on month. The cartel's members regard supply and demand in crude markets currently as balanced and oil reserves as sufficient. But demand is slowing due to declining oil imports from Chinaand India, slow economic growth in the US and the European debt crisis. Yet OPEC sees no need for a change in output at their next scheduled meeting. But a Saudi official said the cartel was ready to take the necessary steps to stabilize oil prices if needed.

The Stochastic indicator gives only faint bearish signals at all charts this morning. Should its two lines cross and should the RSI breach the 30% line on its way up, a strong buying signal would be triggered. The oversold markets favour an upward correction and the strong medium-term downtrends have enough upside for an upward correction within the trendchannel. Should no buying signal be triggered, oil prices might try to breach Tuesday's lows. DOE data could be crucial today. The WTI crude is supported at 75.00 dollars today, its first resistance is seen at 79.65 dollars. The Brent's first resistance is seen at 102.25 dollars, its first support is at 100.00 dollars.

U.S.

Nymex Access losing. Oil futures trade modestly lower in East Asia and Globex electronic trade this morning in a technical reaction to Tuesday's late rally and on profit taking. The traded volume is on average.

API's: Crude oil -3.1; distillates -2.0; gasoline -5.0 million barrels vs previous week. Refinery utilization -1.0%

DOE's; due out tonight

Forecasts: Crude oil +1.0; distillates -0.3; gasoline +1.1 million barrels vs previous week.

Houston (ex-wharf indications 4-10)

380cst $606
180cst $651
MGO $887

Very tight avails for 180 cst

New Orleans (ex-wharf indications 4-10)

380cst $609
180cst $654
MGO $890

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

Crude is bouncing up again, gaining with WTI +$1.32 Singapore paper is cautiously reacting with +$1.25 for 180cst and +$0.75 for 380cst for Oct, and for Nov 180 cst +$1.10 and 380cst +$0.70 with MGO Oct contracts at +$0.34 and for Nov at +$0.29. The cargo market is also losing still with 180cst -$5.85, 380cst -$8.65 and MGO -$1.49.

The Singaporefuel oil markets lost $5.0 to 9.0/mt. during the Platts window. Singaporefundamentals are facing a shortage of on specs bunker grade products, which supports the market. The delivered bunker premiums strengthened to $25.0/mt above cargo prices yesterday. Bunker fuel swaps were down both for Rotterdam FOBBarges 3.5% and Singapore180-cst Cargo FOBpapers moving forward curve lower without any significant changes of the structure. Both markets are trading higher today.

High premiums for prompt deliveries.

380 cst $620
180 cst $625
MDO $870

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market saw fair levels of demand Tuesday, despite another bearish day on the equity and oil markets. Brent crude traded over $1/barrel lower from Monday’s settle as the Greek debt crisis raised fears of another global downturn, adding to bearish sentiment of amid ample supplies from returning Libyan production and higher Russian output. Vessels in Rotterdamcontinued to experience congestion at loading installations due to very tight high sulfur fuel oil supplies. In the MOC 1% was traded between $ 606-610 with hs $ 590-596 levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 602
(1.0 %) :$ 619
180cst: $ 614
(1.0 %):$ 638
MGO 0.1%S: $ 871