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In the wake of the advancing euro, crude prices have climbed during morning trade. Around noon, they have shed some gains, however, as European equities declined and the WTI Crude's resistance at 83.70 dollars remained strong. The EIA's bearish monthly energy report has weighed on oil prices - even after the release of the rather neutral figures from the IEA. Saudi oil minister al-Naimi's comments, saying that oil demand will reach its peak before supply will do, has put some additional pressure on oil futures.

After Monday's significant losses oil prices saw a slight upward correction on Tuesday, caused by some short-covering. This rise was supported by equities and the euro marking some gains, even though the fundamental and the technical constellation were slightly bearish. Given the diverging comments of some OPEC members, the cartel's reunion will probably bear some controversies. The meeting was actually only scheduled for Thursday but the OPEC considered to extend it until Friday. While Saudi Arabia still favors a higher OPEC output, Iran and Venezuela want to urge the cartel to stick to its 30 mbpd production ceiling. In the course of the day, the WTI crude was able to breach its first resistance line and thus received some technical support. Gains for ICE futures were limited, however, given the diverging statements of the OPEC members, the problems in the euro zone and the EIA's widely bearish monthly energy report. The API's forecast regarding US oil inventories, published at 10.30 p.m. yesterday, came out slightly bearish showing surprise builds in crude oil stocks.

ICE Gasoil contract for Jule delivery settled at 846.00 dollars on Tuesday. This was ±0.00 dollars above Monday's settlement. With some 112,832 contracts the traded volume was far above average.

The RSI gives a buying signal for the WTI crude and the G.Oil this morning, whereas it does not yet give any signal for the Brent. The stochastic indicator remains bearish, however. Therefore technical analysts assess the situation as neutral this morning. The technical situation is currently slightly eclipsed by the impact of macro-economic news, of the euro and equities. As it gives mixed cues today, it is not able to indicate the direction oil futures might take.

U.S.

Nymex access losing: Oil futures edged lower in Asian trading and on Globex electronic trading platform this morning, keeping track of the euro's fluctuations, but are currently gaining ground again. The traded volume is slightly above average. Market players look ahead to stock and forex markets today, as well as to economic data and the DOE's data which are to be published at 4.30 p.m.

API's: Crude oil +1.6; distillates +0.5; gasoline -0.9 million barrels vs previous week. Refinery utilization +0.7%
DOE's; due out tonight
Forecasts: Crude oil -1.8; distillates +0.7; gasoline +0.4 million barrels vs previous week.

Houston (ex-wharf indications 12-6)

380cst $573
180cst $610
MGO $882

New Orleans (ex-wharf indications 12-6)

380cst $583
180cst $623
MGO $880

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

Crude is bouncing back up with WTI +$1.48. Singapore paper is turning as well with +$7.75 for 180cst and +$7.85 for 380cst for Jun, and for Jul 180 cst +$6.50 and 380cst +$5.75 with MGO contracts Jun +$0.50 and Jul +$0.52. The cargo market is turning bearish with 180cst -$12.03, 380cst -$13.25 and MGO -$2.95.

The Singapore fuel oil markets fell more than -$12.0 yesterday morning. The cargo premiums saw some strengthening also reflected in the delivered bunker premiums. It was assessed app. $8.5 above cargo prices yesterday. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $595
180 cst $606
MGO $830

Fujairah (delivered indications 13-6)

380cst $615
180cst $635
MGO $1035

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market had an active start of the week, but after crude values dropped, demand faded. Despite crude losing, the local avails are still tight, with most suppliers fully booked for the week.

Rotterdam

Indications for delivered bunkers:

380cst : $ 578
(1.0 %) :$ 620
180cst: $ 602
(1.0 %):$ 643
MGO 0.1%S: $842