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Light Sweet Crude Oil (WTI) futures for December delivery, edged up $0.13 to $86.80 a barrel this morning. Yesterday, oil shed over 2 percent to settle at a fresh 3-month low on weak corporate earnings fueling demand concerns for the commodity, even as supply worries eased with reopening of a major oil pipeline in North America.

Since market fundamentals and the technical situation have been slightly bearish, oil futures at ICE and NYMEX have already tested their downward potential early Tuesday morning. Along with the strong dollar and retreating equities, oil prices have breached first supports which triggered technical selling orders and a significant downward correction . Disappointing US business results have added to the limited economic outlook, making investors shy away from riskier assets like equities, euro and oil futures. The re-commissioning of the Keystone Pipeline has increased the downward potential at NYMEX, whereas the restart of the Buzzard oil field in the North Sea will not take place before October 25 or 26. Therefore profit taking from the WTI has been much more significant. The WTI crude thus hit a 3-month low of 85.69 dollars yesterday. The Brent and the G.Oil at ICE only marked a 1-month low at 107.31 dollars, resp. 953.25 dollars. Beside the data on US oil inventories published by the DOE this afternoon, investors expect a string of important economic data from the USA and Europe in the course of the week and so there has already been a slight counter-reaction at oil markets. The data of the API which were published last night came out mixed but - compared to the survey - still rather bullish.

ICE Gasoil contract for November delivery settled at 954.75 dollars on Tuesday. This was 22.50 dollars below Monday's settlement. With some 78,800 deals the traded volume was above average.

The stochastic indicator is still slightly bearish for the WTI crude, the lines of the indicator converge, however. At ICE charts they have already met for the Brent and the G.Oil. If the breach, there will be a buying signal. The oversold situation would reinforce a technical upward reaction, which is why technical analysts meanwhile assess the situation as neutral and no longer as bearish. Should the lines of the stochastic indicator cross and/or the RSI breach the 30% line bottom-up, the technical situation would suddenly become bullish.

U.S.

Nymex access dropping: Oil prices saw a significant upward correction in East-Asia and on Globex electronic trading platform this morning after yesterdays losses. Especially ICE futures have nearly pared these losses again. Their rise has been favoured by the still scant crude oil supply in Europe, caused by the delays in North Sea cargoes and by the Force Majeure for Nigerian crude yesterday. The traded volume is far above average. Market players eye the performance of stock and forex markets today and a string of economic indicators, as well as the DOE's data.

Survey of US Petroleum inventories due this afternoon at 16:30(DOE)

Survey: Crude oil +1.8; distillates -0.5; gasoline +0.7 million barrels vs previous week
API: Crude oil +0.3; distillates -0.9; gasoline +0.2 million barrels vs previous week

Houston (ex-wharf indications 23-10)

380cst $623
180cst $674
MGO $1035

New Orleans (ex-wharf indications 23-10)

380cst $629
180cst $682
MGO $1040

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

Crude is falling with WTI -$1.91. Singapore paper is decreasing with -$7.35 for 180cst and -$7.55 for 380cst for Oct, and for Nov 180 cst -$6.80 and 380cst -$6.50 with MGO contracts Oct -$0.86 and Nov -$0.84 The cargo market is bullish with 180 cst +$1.29 380cst +$1.32 and MGO +$0.34.

380 cst $630
180 cst $640
MGO $920

ARA (Amsterdam - Rotterdam - Antwerp)

High and low sulphur fuel oil loadings in Rotterdam remained hindered by ongoing operational delays at loading installations. The nearest bunker hub of Antwerp reported good operations and good product availability.

Rotterdam

Indications for delivered bunkers:

380cst : $ 607
(1.0 %) :$ 641
180cst: $ 635
(1.0 %):$ 669
MGO 0.1%S: $955