Oil futures at ICE and NYMEX still retreated Tuesday morning. The Greek Prime Minister Papandreou's announcement to conduct a vote of confidence and a referendum regarding the resolutions of last week's EU summit startled investors throughout the markets, as this might finally have as consequence Greece's bankruptcy and its being expelled from the Eurozone. China's PMI which emerged worse than expected additionally weighed on oil prices. As risk aversion rose, investors focused on the dollar, which is generally considered a safe-haven currency. Thus dollar-traded commodities got under pressure. Both futures at ICE and NYMEX breached several supports triggering additional selling impulsions. Only slightly above the marks of 89 dollars for the WTI Crude and 106 dollars for the Brent losses were limited. During late trade the US dollar edged lower allowing oil markets to test their leeway up and so oil futures pared some of their earlier losses. At night, they were also supported by the API's bullish data regarding US oil inventories. Oil prices trade slightly higher during East Asia and Globex electronic trade this morning. After having rallied in the evening, WTI Crude slightly recovers this morning. According to market participants, momentum has been provided by the retreating dollar. The traded volume is below average. Traders look ahead to the opening of European stock markets, European and American economic indicators, the DOE's data, as well as to the results of the FOMC meeting.
Although the stochastic indicator remains bearish, it already indicates a change regarding the Brent, The indicator is still slightly bearish for the Brent but if its lines crossed in the course of the day, a buying signal would be given, technical analysts say. Oil markets currently show short term down trends, which are contradictory to the mid term supports. According to analysts a significant technical reaction will only be triggered, when one of these aspects is able to outweigh the other. The WTI crude is supported at 89.75 dollars today, its first resistance is seen at 92.90 dollars. The Brent's first resistance is seen at 109.70 dollars, its first support is at 106.10 dollars.
In the wake of a positive opening of European stock markets, oil futures have breached several resistance lines this morning. ICE Brent has already passed the mark of 110,50 dollars, whereas the WTI Crude has approached its second resistance at 93,40 dollars. The advancing euro has also supported oil futures.
ICE Gasoil contract for November delivery settled down 10,00 to 11,50 at about at 949,75 after settling at 939,00 dollars Tuesday night. This was 11,50 dollars below Monday's settlement. Volume with some 45.900 contracts was below average.
The dollar lost ground against the euro this morning on speculation reports this week pointing to a faltering U.S. economy will spur the central bank to consider more asset purchases, or quantitative easing, to support growth. The dollar declined before Federal Reserve policy makers end a two-day meeting today. The euro reversed losses after Greece’s Cabinet backed Prime Minister George Papandreou’s plan to put a bailout package to a referendum and before the region’s leaders meet to stem the debt crisis. The Greek government'S spokesman Elias Mosialos said the referendum will be held “as soon as possible,” and that the vote of confidence in Parliament is also scheduled to begin today and to conclude at the week’s end. According to reports, the outlook for the vote of confidence was positive.
In Cannes, France, today Papandreou will brief German Chancellor Angela Merkel, French President Nicolas Sarkozy, European Central Bank President Mario Draghi and other officials on developments in Greece. Group of 20 leaders will also meet in the French resort tomorrow to discuss the debt crisis.
The euro last sold at 1,3755 dollar compared to 1,3696 Tuesday night. It is supported at 1,3700 dollar, at 1,3650 dollar and at 1,3605 dollar. Resistances are seen at 1,3765 dollar, at 1,38 dollar and at 1,3875 dollar.
Eurozone economic indicators:
* The purchasing manager index for the manufacturing sector in the euro zone dropped to 47.1 in October after a reading of 48.5 in the previous month. Economists had expected the index at 47.3.
* Germany's unemployment rate stood at 6.5% in October, after a reading of 6.6% in September.
U.S.
Nymex Access losing: Oil prices retreat only slightly during East Asia and Globex electronic trade this morning. After some technical correction up last night, oil futures trade lower this morning. According to market participants, the main impetus is provided by the continually strong dollar. The traded volume is slightly below average. Traders look ahead to the opening of European and US stock markets today, as well as to further impetus provided by foreign exchange.
Refinery runs are still rather low and therefore there mere output is not able to meet the need of products. Thus gasoline and distillate stocks continue decreasing. Lower imports of products as well as of crude oil (compared to the previous week) add to this. Due to the unexpected draws, the API's data are seen as bullish. However, market participants also look ahead to the DOE's data, to be published this afternoon at 3.30 p.m.
Houston (ex-wharf indications 2-11)
380cst $638
180cst $690
MGO $980
Very tight avails for 180 cst
New Orleans (ex-wharf indications 2-11)
380cst $641
180cst $693
MGO $985
Singapore (correct as of 1430hrs LT - delivered indications)
Crude is now gaining after a brief rally on the stock market with the euro gaining with WTI +$1.64. Singapore paper is rising sharply with +$16.30 for 180cst and +$16.45 for 380cst for Nov, and for Dec 180 cst +$13.75 and 380cst +$14.65 with MGO Nov contracts at +$1.49 and for Dec at +$1.49. The cargo market is slowing now in its losses in a reaction to the bullishnes with 180cst -$2.90, 380cst -$2.42 and MGO -$0.86.
The Singapore fuel oil markets slipped more than -$2.50 during the Platts window. The Asian fuel oil crack strengthened as buying interest supported the market. The delivered bunker premium softened to around $15.00 above the cargo prices yesterday.
High premiums for prompt deliveries.
380 cst $682
180 cst $696
MDO $950
ARA (Amsterdam - Rotterdam - Antwerp)
In the MOC HSFO traded betwee $629-634 with 66KT changing hands with Lukoil the keenest seller. High sulfur fuel oil prices in Rotterdam softened $7/mt after a spike of $13/mt Thursday afternoon on escalating oil prices in the afternoon. Despite weaker Fob Rotterdam barges, bunker prices for prompt inquiries remained strong on ongoing shortages and congestion at loading installations in the port, sources said. Most suppliers are fully booked for this month with some even fully committed until November 5.
Rotterdam
Indications for delivered bunkers:
380cst : $ 645
(1.0 %) :$ 666
180cst: $ 662
(1.0 %):$ 685
MGO 0.1%S: $ 968
