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Oil prices are easing this morning on worse than expected EU production data, countering the better than expected Economic data from the US and china. Traders eye the release of the DOE data later today.

Trade was predominated by technical factors on Monday, with quotations remaining within their ranges. Worse than expected US economic indicators slightly weighed on oil futures. On Tuesday, many European countries had a holiday but trade in London and New York was as usual. Initially, oil futures hardly changed and consolidated on Monday's settlement level, whereas some profit taking at ICE weighed on prices. Given the recently rather disappointing economic data from China, the USA and Europe, market participants expected a lower reading regarding the US ISM manufacturing index. The latter, however, showed un unexpectedly higher reading in April, boosting risk appetite at US markets. As equities marked gains, especially the WTI crude futures saw a considerable upward correction in late afternoon trade, breaching several resistance lines. This triggered further technical buying orders. The spread between the WTI and the Brent narrowed to less than 14 dollars and thus reached its lowest reading since almost 3 months. Even though the bullish reaction on the US data was far more limited at ICE than for the WTI, nearly all futures settled with gains yesterday.

ICE Gasoil contract for May delivery settled at 1,013.50 dollars on Tuesday. This was 6.25 dollars above Monday's settlement. With some 37,200 contracts the traded volume was well below average.

As the stochastic indicator's lines have crossed this morning, it is clearly bearish, whereas the RSI remained above the 70% line and does not yet give any selling signal. Yesterday's significant upward movement and the stochastic's first selling impulsions technically indicate some profit taking. But given the release of the DOE's data later this afternoon and the importance of economic indicators, the technical constellation might be put in the background.

U.S.

Nymex access losing: Oil futures have edged lower in Asian trading and on Globex electronic trading platform this morning. The stochastic indicator's selling impulsions and the dollar that has gained some ground yesterday have prompted investors to take some profits. The traded volume has been far below average. Investors now watch the performances of stock and forex markets, today's economic indicators and the DOE's data on US oil inventories.

API's: Crude oil +2.0; distillates -4.2; gasoline -3.9 million barrels vs previous week. Refinery utilization +1.0%

DOE's; due out tonight

Forecasts: Crude oil +2.1; distillates -0.3; gasoline -0.9 million barrels vs previous week

Houston (ex-wharf indications 2-5)

380cst $708
180cst $743
MGO $1043

New Orleans (ex-wharf indications 2-5)

380cst $715
180cst $745
MGO $1063

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

Crude is firming with WTI +$1.24 Singapore paper is reacting with +$4.45 for 180cst and +$5.50 for 380cst for May, and for June 180 cst +$4.80 and 380cst +$5.50 with MGO contracts May +$0.25 and June +$0.26. The cargo market is mixed with 180cst -$1.49, 380cst -$1.68 and MGO +$0.23.

The Singapore fuel oil markets were closed yesterday for the Labour Day holiday and the market reopened today. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $720
180 cst $730
MGO $990

Fujairah (delivered indications 2-5)

380cst $726
180cst $747
MGO $1057

ARA (Amsterdam - Rotterdam - Antwerp)

After a bullish start of the week, last week ended soft, with hsfo and lsfo tracking softening crude. The Eastern arbitrage is at workable levels. The ongoing barge congestions in Rotterdam and Antwerp are still causing considerable delays, although Antwerp has come back to a normalised situation, while Rotterdam is still suffering from loading delays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 699
(1.0 %) :$ 745
180cst: $ 730
(1.0 %):$ 758
MGO 0.1%S: $1005