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Crude oil futures were higher during European morning hours on Wednesday, as refineries along the U.S. East Coast started to resume operations after Hurricane Sandy moved away from the region. Oil traders waited for key Chinese manufacturing and U.S. employment data later in the week, amid concerns over the health of the global economy. New York-traded oil prices rose by as much as 1.1% earlier in the day to hit a session high of USD86.57 a barrel. On Monday, futures fell to a four-month low of USD84.70 a barrel.

After crude oil futures had traded more softly compared to product futures on Monday, this tendency changed yesterday. Market players focused more on pricing in the weaker demand and so especially the ICE Gasoil and NYMEX Heating Oil and Gasoline retreated. Refineries have not reported any major damages done by the storm and production at Philadelphia Energy Solution's refinery has even already been restarted. With NYMEX floor trade still closed, the traded volume at US markets renewedly remained below average yesterday. Thus investors mainly traded on electronic platforms trying to adjust their riskier assets. While futures have traded in a rather narrow range in the evening, the NYMEX Gasoline contract gained considerable ground again. Obviously market players are still not sure about whether the bullish or the bearish impacts of the storm will prevail. As the Heating Oil's and the Gasoline's contract with November delivery will expire this evening, they are very susceptible to fluctuations. The API's data, published last night, have not shown any major impact on prices up to now.

Hurricane Sandy: CME Group, which operates NYMEX, announced to re-open the floor trade in New York today, after the evacuation of the area was discontinued. Meanwhile, storm Sandy has drifted northwards and as a post-tropical cyclone. Storm Sandy passed the sensitive areas around New York and Philadelphia without causing sustained damages at the refineries. At least that is the preliminary result announced by the operating companies. While Philadelphia Energy Solutions re-started its refinery in Philadelphia and will ramp up production to reach normal utilization, the refineries Phillips 66 Bayway and Hess Port Reading remain shut-down. Both facilities are currently cut off from the electricity grid. How long it will take to resume electricity supplies is, as of yet, not known. President Obama gave order to re-install the electricity grid with highest priority, though.

ICE Gasoil contract for November delivery settled at 963.50 dollars on Tuesday. This was 7.00 dollars below Monday's settlement. With some 72,500 deals the traded volume was above average.

The stochastic indicator does not give any clear signals today. While the indicator is still slightly bullish for the WTI crude, it is bearish for the Gasoil as its lines have crossed. At the Brent chart, the stochastic indicator can be seen as neutral. The RSI is still below the 30%-line at ICE and NYMEX charts and so there are no buying signals of yet, see also technical analysis. Therefore the markets are technically neutral this morning, the more so as the short term trend channels don't point to any direction. While the WTI crude's short-term trend rather indicates a downward movement, the Gasoil and Brent seem more likely to rise. Anyway, analysts expect trade to be rather volatile today as US traders will return after a two-day break at NYMEX floor trade and as the effects of the storm Sandy are likely to put the technical situation in the background.

U.S.

Nymex access neutral to bullish: Oil prices have gained some ground in East-Asia and on Globex electronic trading platform this morning. They have been slightly bolstered by the rise of gasoline futures last night. The traded volume is on average. Investors now look ahead to the damage reports regarding Hurricane Sandy, on the performance of stock and forex markets and some economic indicators.

Survey of US Petroleum inventories due out tonight at 16:30(DOE).
Crude oil +1.6; distillates -1.4; gasoline +0.0 million barrels vs previous week.
API: Crude oil +2.1; distillates -2.6; gasoline -0.2 million barrels vs previous week.

Houston (ex-wharf indications 30-10)

380cst $614
180cst $688
MGO $1040

New Orleans (ex-wharf indications 30-10)

380cst $619
180cst $687
MGO $1030

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

The Singapore fuel oil market dropped more than -$7.0 yesterday during the morning Platts window. There was seen strong selling interest that weakened fuel oil crack spread significantly. The bunker premiums were around $6.25 above cargo prices. Bunker fuel oil swaps posted up to $4/mt losses at the front of the forward curve for Singapore papers while backend was significantly stronger, remaining mostly unchanged from previous day’s close. This morning the markets are trading higher.

380 cst $620
180 cst $630
MGO $930

ARA (Amsterdam - Rotterdam - Antwerp)

High sulfur bunker fuel oil premiums for prompt delivery in Rotterdam remain firm on ongoing delays at some loading installations and despite ample supply in the ex-wharf barge market. Premiums for prompt can reach $3/mt to $10/mt above normal bunker quotes. LSFO avails are good.

Rotterdam

Indications for delivered bunkers:

380cst : $ 595
(1.0 %) :$ 633
180cst: $ 625
(1.0 %):$ 663
MGO 0.1%S: $955