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Brent fell 11 cents to $113.89 a barrel by 1000 GMT. The November contract, which expired on Tuesday, closed 73 cents lower at $115.07, while December settled 40 cents lower at $114.00. U.S. oil gained 11 cents to $92.20. Brent gained in early trade after Moody's Investors Service affirmed its investment grade rating on Spain helping ease investor worries that the crisis in the region is worsening.

Oil prices remained in a relatively narrow range on Tuesday. However, within these boundaries, they proved rather volatile. The up and down yesterday lasted all day, without quotations showing a clear direction. Only the Brent traded slightly lower than the other futures, as investors cut some of their long positions of the November contract which expired yesterday evening. While the advancing euro and stronger equities supported oil prices, the rather bearish technical constellation seemed to limit the upward potential. Ahead of the data regarding US oil inventories investors remained cautious preferring to consolidate their riskier assets. Therefore the slightly positive US economic indicators had no sustainable impact on prices at ICE and NYMEX. The API's data, published at 10.30 pm, were regarded as bearish and so oil futures settled near their intraday lows. Only the WTI crude remained relatively steady. However, this was due to spreadbetters cutting their positions as the Brent November contract expired. This is why in the evening short positions in WTI crude and long positions have been liquidated.

ICE Gasoil contract for November delivery settled at 1,003.25 dollars on Tuesday. This was 5.50 dollars above Monday's settlement. With some 80,700 deals the traded volume was well above average.

While the stochastic indicator is neutral for the WTI crude this morning, the indicator remains slightly bearish at ICE charts. In addition to this, the RSI already scratches at the 70%-line at the Gasoil's and the Brent's charts. If it breaches this line, there will be a new selling signa. Accordingly, market participants assess the situation as rather bearish even though there have been some upward movements this morning following the profit taking last night. Focus is on the US inventories data to be published this afternoon but if these come out bearish, the technical constellation might also favour more profit taking, analysts say.

U.S.

Nymex access stable: Oil prices were trading slightly higher in East-Asia and Globex electronic trading this morning, breaching first resistance lines after yesterday's downward movement. According to market players, the rise was due to steady equities and a weaker dollar. Currently oil futures are pulling back from their highs, however. The traded volume is well above average. Investors now look ahead to the performance of stock and forex markets today as well as a string of economic indicators and the release of the DoE's data this afternoon.

Survey of US Petroleum inventories due out tonight at 16:30(DOE)
API's: Crude oil +3.7; distillates +1.8; gasoline -1.2 million barrels vs previous week. Refinery utilization -0.6%
Forecast: Crude oil +0.9; distillates -0.7; gasoline +0.8 million barrels vs previous week

Houston (ex-wharf indications 16-10)

380cst $635
180cst $685
MGO $1065

New Orleans (ex-wharf indications 16-10)

380cst $640
180cst $692
MGO $1070

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

Crude is stable with WTI -$0.12. Singapore paper is bearish with -$7.35 for 180cst and -$7.00 for 380cst for Oct, and for Nov 180 cst -$7.35 and 380cst -$7.00 with MGO contracts Oct -$0.65 and Nov -$0.67 The cargo market is slightly bullish with 180 cst +$2.16 380cst +$1.73 and MGO +$0.43.

The Singapore market is expected to receive 5.2 million mt which is 50% more than the previous month. The delivered bunker premiums edged up slightly to $6.25 above cargo prices yesterday. Bunker fuel oil swaps gained app.$3/mt at the front and up to $5.5/mt at the backend of the forward curve for Singapore papers. This morning the markets are trading slightly down.

380 cst $643
180 cst $655
MGO $960

ARA (Amsterdam - Rotterdam - Antwerp)

High and low sulfur bunker fuel oil premiums for prompt delivery in Rotterdam could be set to ease by the end of next week as more product flows into the region after the arbitrage fixtures earlier this month that left the bunker market tight. At this moment prompt enquiries are often high in price or no offers what so ever due to tight avails.

Rotterdam

Indications for delivered bunkers:

380cst : $ 622
(1.0 %) :$ 656
180cst: $ 652
(1.0 %):$ 686
MGO 0.1%S: $990