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Crude oil futures traded near flat in London Tuesday in a continuation of this week's narrow range, as scant fundamental news meant the focus was firmly on forthcoming macroeconomic data for indications about the strength of demand. The front-month November Brent contract on London's ICE futures exchange is down 10 cents at $112.09 a barrel. The front-month November light, sweet crude contract on the New York Mercantile Exchange is trading 27 cents higher at $92.75 a barrel.

Oil prices started slightly lower into the day in London and New York, the Brent, the WTI and the gasoil lingering between resistances and support lines. The rising euro, optimistic equity markets and positive economic data from the USA and Europe lent a certain support. Only after the opening of NYMEX session did the oil futures breach the first resistance lines, triggering a string of automatic buying orders and propelling prices to fresh intraday highs. The US ISM manufacturing index provided some more bullish momentum in the afternoon, but earlier highs couldn't be exceeded. Neither the euro nor the equity markets could gain much more ground later in the session, so market participants took some profit on oil in a bearish market setting.

ICE Gasoil contract for October delivery settled at 982.50 dollars on Monday. This was 1.75 dollars above Friday's settlement. With some 51,800 contracts the traded volume was about on average.

The Stochastic oscillator's two lines at the WTI chart are converging its’ a sign that the indicator has lost its bullish impact. The one at the gasoil charts gives a first selling signal, while the one at the Brent chart is still neutral. That's why technical analysts expect that the futures at the ICE will test their downside within the short-term uptrends. Should the Stochastic oscillator at the Brent and the WTI charts also give a bearish signal the lower limits of the trend channels might be breached. Still, prior to tomorrow's DoE data and the important economic indicators to be released on Thursday and Friday there will be no hefty downward correction, so experts.

U.S.

Nymex access bearish : Oil prices are edging modestly lower in early Asian trading and on Globex electronic trading platform this morning but still in a narrow range due to a lack of fresh momentum from the euro or equity markets. The traded volume is below average. As there is no important news on the agenda today, market players eye the performance of stock and forex markets and the release of the API data tonight.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)
Crude oil +1.7; distillates -0.3; gasoline -0.4 million barrels vs previous week
Houston (ex-wharf indications 1-10)

380cst $649
180cst $691
MGO $1055

New Orleans (ex-wharf indications 1-10)

380cst $658
180cst $693
MGO $1050

Singapore (correct as per 14:30hrs LT-delivered indications)

Crude is stable with WTI +$0.87. Singapore paper is steady with -$0.25 for 180cst and +$0.10 for 380cst for Oct, and for Nov 180 cst +$0.55 and 380cst +$0.15 with MGO contracts Oct +$0.50 and Nov +$0.44. The cargo market is bearish with 180cst -$2.02, 380cst -$1.73 and MGO -$1.14.

The Singapore Fuel Oil markets slipped around $2.0 during the morning window yesterday. The delivered bunker premiums also slipped to around $7.0 above cargo prices as several major markets in Asia were closed for holiday. Bunker fuel oil swaps posted app.$1/mt gains at the front and a dollar more at the backend of the forward curve for the Singapore papers. This morning the market is trading slightly higher.

High premiums for prompt deliveries.

380 cst $655
180 cst $665
MGO $960

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA is well supplied, with some demand picking up, although Suppliers in Rotterdam continued to experience some difficulties to meet low sulfur fuel oil inquiries for prompt due to ongoing supply shortages in the area. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 634
(1.0 %) :$ 686
180cst: $ 658
(1.0 %):$ 735
MGO 0.1%S: $965