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Oil prices have initially climbed this morning but have been unable to breach important resistance lines. In a first counteraction oil futures currently pull back from their highs on some profit taking. Expectations of shrinking crude oil inventories in the USAas well as the conflict regarding the Iranare supporting oil futures. Last evening, the EU's energy commissioner Guenther Oettinger had indicated that EU politicians had come to an agreement regarding an embargo on oil imports from the Iran.

Given Standard & Poor's' announcement, oil futures at ICE and NYMEX have started out lower Tuesday morning testing their downward potential. Supports at 950.00 dollars for ICE Gasoil and at 109.00 dollars for the WTI crude have proved strong. Market participants have only slowly digested the shock caused by Standard & Poor's announcement it might downgrade most of the countries of the euro zone. Prices have been supported by the recovering euro, which profited from positive European economic data. Investors sentiment - still slightly pessimistic at the beginning of the session - has become a little more positive in the course of the day. Experts say that S&P's threat might increase the pressure on Europe. On Thursday and Friday, European politicians will decide on the changes of the EU treaties. In the wake of slightly gaining American stocks and an advancing euro, oil futures pulled back from their lows settling near their intra-day highs.

ICE Gasoil contract for December delivery settled at 958.25 dollars on Tuesday. This was 6.25 dollars below Monday's settlement. With some 42,300 contracts the traded volume was below average.

The stochastic oscillator is still slightly bearish for the WTI crude this morning, whereas there are already new buying signals at the ICE. Despite of these buying signals technical analysts still asses the situation as neutral, as there have formed technical triangles which define today's range. They expect a test of the resistance lines but markets are only likely to turn bullish if oil futures breached these triangles and exceeded them. Above the mark of 111.35 dollars there might be some upward potential up to 112.00 dollars, analysts say. The first support for the WTI is at 100.65 dollars today, its first resistance is seen at 102.30 dollars. The Brent's first resistance is seen at 111.25 dollars, its first support is at 109.50 dollars.

U.S.

Nymex acces gaining. Oil futures consolidated on a high level in Asiaand on Globex electronic trading platform this morning. Trading is rather lackluster this morning but the markets keep track of last night's level and show an upward tendency. Market participants regard gaining Asian stock markets (Nikkei + 132.05 points) and the euro's slight overnight gains as support. Market participants now eye the European session and look ahead to German industrial production figures and the DOE's data.

API's: Crude oil -5.0; distillates +1.7; gasoline +6.0 million barrels vs previous week. Refinery utilization +0.5%
DOE's; due out tonight
Forecasts: Crude oil -0.8; distillates +0.8; gasoline +0.9 million barrels vs previous week

Houston (ex-wharf indications 6-12)

380cst $637
180cst $676
MGO $973

Very tight avails for 180 cst

New Orleans (ex-wharf indications 6-12)

380cst $639
180cst $679
MGO $976

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

Crude is back up again, gaining with WTI +$1.00. Singapore paper is reflecting the last turn, gaining with +$6.00 for 180cst and +$6.10 for 380cst for Dec, and for Jan 180 cst +$5.25 and 380cst +$4.45 with MGO Dec contracts at +$1.00 and for Jan +$2.20. The cargo market is mixed with 180cst -$6.11, 380cst -$6.47 and MGO +$0.93.

The Singapore fuel oil markets similarly fell more than -$6.0 during the Platts window yesterday. The delivered bunker premiums were up to around $18.50 above the cargo prices yesterday as crude strengthened and also some level of tightness especially for prompt loadings. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $665
180 cst $668
MGO $935

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest European bunker values softened Tuesday following weaker 3.5% Fob Rotterdam barges, as oil prices were struggling for direction over the day. However, trading activity for bunker fuel oil in most of the NWE bunker hubs was supported despite oil market participants awaiting fresh news about the Eurozone. High sulfur fuel oil supplies for prompt inquiries in ARA remained tight as at least three VLCCs were expected to load for the Asian market by the end of the month. LSFO in Antwerpremained very tight as local suppliers were keeping their stocks low before the end of the year.

Rotterdam

Indications for delivered bunkers:

380cst : $ 630
(1.0 %) :$ 666
180cst: $ 644
(1.0 %):$ 675
MGO 0.1%S: $969