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Oil prices continue their bullish sentiment, but as decisive fundamental news was lacking, they traded sideways in a narrow range. After the euro declined, oil futures have also slightly retreated. This afternoon, market investors will eye the DOE's data on US oil inventories, to be published at 4.30 p.m. The technical constellation might also provide some cue. . For the time being however, there have not been any selling signals from the RSI or from the stochastic indicator.

Oil futures at ICE and NYMEX have traded sideways early Tuesday morning before the opening of the European session brought some momentum. While the euro and equities lost some strength in the course of late-afternoon trade, seeing some profit taking, an increasingly bullish market situation made oil prices rally. As to fundamentals, fears of supply shortages buoyed prices. In Europe, insecurities were caused by the shortfall of exports from the Ceyhan pipeline after the attack against the pipeline on Monday, the lower production of the North Sea crude varieties Brent and Forties as well as the troubles in Syria, where the Iranian envoy Jalili backed Assad. In the USA the fire at a refinery Richmond (California) and above all Ernesto keep prices on a higher level. The tropical storm was upgraded to a hurricane last night and is likely to disrupt Mexico's export of crude oil and products. However, oil futures have also been supported by technical factors. Technical analysts had already assessed the situation as slightly bullish in the morning. When key resistances at 110.95 dollar (Brent), at 939.75 dollar (Gasoil) and at 92.85 dollar (WTI) have been breached, technical buying orders have been triggered that accelerated oil futures rise. While Ben Bernanke did not mention any concrete measures of monetary policy during his speech yesterday, the EIA's monthly report (see here) was interpreted as bullish. The API's oil inventories data, published at 10.30 p.m., have not shown any decisive impact as of now but some market players have seized the high price level later in the evening to take some profit. Nevertheless, quotations settled with considerable gains, with the WTI crude, the Brent and the G.Oil marking new 3-month highs.

ICE Gasoil contract for August delivery settled at 947.00 dollars on Tuesday. This was 16.75 dollars above Monday's settlement. With some 45,800 contracts the traded volume was below average.

The stochastic indicator remains bullish at the WTI charts whereas the indicator loses its impact at ICE - at the Brent and G.Oil charts its lines already met. The situation is considered as increasingly overbought. This might reinforce possible selling signals. If the lines of the stochastic cross at ICE or even at the WTI charts in the course of the day, technical profit taking might be triggered after yesterdays price rally. Analysts highlight the fundamental situation, however, that is still focused and does not yet allow for a sharp downward reaction.

U.S.

Nymex access gaining: Oil futures traded sideways in East-Asia and on Globex electronic trading platform this morning. After yesterday's price rally and new 3-month highs, market participants wait for new clues. The traded volume is slightly below average. Investors look ahead to the performance of equities and forex markets today as well as some economic indicators the DOE's data on US oil inventories, released at 4.30 p.m.

API's: Crude oil -5.4; distillates +2.4; gasoline +0.4 million barrels vs previous week. Refinery utilization -0.5%.
DOE's; due out tonight.
Forecasts: Crude oil -0.9; distillates +0.5; gasoline -1.2 million barrels vs previous week.

Houston (ex-wharf indications 7-8)

380cst $634
180cst $662
MGO $980

New Orleans (ex-wharf indications 7-8)

380cst $637
180cst $667
MGO $990

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

Crude is slowing with WTI +$0.88. Singapore paper is tracking crude, gaining with +$4.25 for 180cst and +$4.75 for 380cst for Aug, and for Sep 180 cst +$4.25 and 380cst +$4.75 with MGO contracts Aug +$1.21 and Sep +$1.20. The cargo market is reacting with 180cst +$9.66, 380cst +$9.37 and MGO +$1.61.

The Singapore fuel oil market prices rose more than +$9.25 during the morning Platts window yesterday tracking crude movement. The delivered bunker premiums slipped to around $7.25 above cargo prices yesterday as the higher outright prices and strengthening crude after the window dampened buying interest. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $650
180 cst $665
MGO $940

Fujairah (delivered indications 8-8)

380cst $660
180cst $680
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

After last week's bullishness, the week continued with the bullishness. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 635
(1.0 %) :$ 691
180cst: $ 675
(1.0 %):$ 736
MGO 0.1%S: $935