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Oil prices have plummeted during morning trade. Market players' doubt about a near solution of Greece's and Italy's financial situation have lead to a drop of both the euro and equities. This has also made oil futures lose ground. At ICE first resistances have been breached. This downward development has been reinforced by the technical constellation. The RSI fell through the 70% line at all charts. Should the lines of the stochastic indicator cross in addition to this, further selling orders will be triggered.

Yesterday, after losing a bit of ground in early morning trading, oil prices jumped after the opening of European markets on a strong euro and the good performance of equities. The bullish technical constellation also lent some support. Several short-term resistance lines were breached at ICE and NYMEX, triggering a wave of technical buying. When Wall Street lost ground after a positive opening and in its wake European equity markets also dropped, oil shed some of its earlier gains. Yet rekindling worries over Iran's nuclear programme and news on the imminent resignation of Italy's premier Berlusconi limited the losses and helped oil back up again in late trade.

ICE Gasoil contract for November delivery settled at 994.50 dollars on Tuesday. This was 10.00 dollars above Monday's settlement. With some 57,000 contracts the traded volume was about on average.

The stochastic oscillator is still slightly bullish at all charts this morning, yet at the strongly overbought level. Should the two lines of the oscillator cross and/or the RSI fall through the 70% line, a selling signal would be triggered and the overbought markets would encourage a wave of profit taking. Meanwhile, the short-term uptrends stay strong remaining a bullish factor, but technical analysts refer to the rising downside risks. The WTI crude is supported at 95.20 dollars today, its first resistance is seen at 98.00 dollars. The Brent's first resistance is seen at 116.50 dollars, its first support is at 114.50 dollars.

U.S.

Nymex Access trading sideways: Oil prices are little changed in Asian trading hours and on Globex electronic trading platform this morning as traders eye the release of US petroleum inventories in the afternoon. The traded volume is below average.

API's: Crude oil +0.1; distillates -2.9; gasoline -1.5 million barrels vs previous week. Refinery utilization -1.5%
DOE's; due out tonight
Forecasts: Crude oil +0.7; distillates -1.9; gasoline -0.4 million barrels vs previous week.

Houston (ex-wharf indications 8-11)

380cst $684
180cst $734
MGO $1013

Very tight avails for 180 cst

New Orleans (ex-wharf indications 8-11)

380cst $687
180cst $737
MGO $1016

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

Crude is slowing, but not turning yet with WTI +$0.40. Singapore paper is losing slightly ahead of crudewith +$2.00 for 180cst and +$2.20 for 380cst for Nov, and for Dec 180 cst -$0.75 and 380cst -$1.00 with MGO Nov contracts at -$0.54 and for Dec at -$0.59. The cargo market reacting to Yesterday's bullishness surging with 180cst +$20.37, 380cst +$21.41 and MGO +$3.90.

Singapore fuel oil markets surged by more than +$20/mt during Platts window pricing in two days gains of crude values. Singapore heavy residual fuel oil saw a build of +0.52 mbbl totalling to 18.52 mbbl. The delivered bunker premium slipped around $15.5/mt above the cargo prices yesterday. Bunker fuel swaps were strong again especially in Singapore. Front month Barges were up by $7/mt while calendar 2012 papers gained approx. a dollar less. Singapore numbers were Stronger in the front adding approx. $2/mt to the December East / West spread while 2012 papers moved up in line with European papers. Markets are trading slightly lower this morning.

High premiums for prompt deliveries.

380 cst $711
180 cst $723
MDO $998

ARA (Amsterdam - Rotterdam - Antwerp)

Demand in some Northwest European bunker hubs started the week with thin trading activity, despite more upbeat sentiment in the oil markets. Rotterdam and Antwerp remain very tight and experience ongoing HSFO shortages. Tight HSFO supplies on a recent VLCC loading for Singapore continued to trigger operational delays at loading installations in Rotterdam.

Rotterdam

Indications for delivered bunkers:

380cst : $ 662
(1.0 %) :$ 690
180cst: $ 693
(1.0 %):$ 716
MGO 0.1%S: $ 990