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Crude oil futures jumped well above $92 a barrel Wednesday, gaining after U.S. policy makers passed a last-minute budget deal to avert the fiscal cliff of spending cuts and tax hikes, while China manufacturing data also lifted sentiment. Crude for February delivery CLG3 +1.46% rose 96 cents, or 1.1%, to trade lately at $92.78 a barrel.

The oil market started with a soft tendency Monday morning since U.S. politicians did not manage to meet the stipulated deadline on Sunday to pass a package of spending cuts. Market participants seemed disappointed and took profits. But downside was limited since only a few traders were active and many risk positions had already been liquidated or minimised last week. In the course of the afternoon, sentiment changed and futures traded up again. The decisive signal arised from Obama's optimistic statement that a resolution is "in sight". Consequently, Brent rised over 111.00 dollars and WTI over 91.00 dollars, closing with a considerable plus on the last trading day in 2012. Although U.S. politicians failed to make a decision at the turn of the year, the U.S. Congress passed a preliminary compromise. Thus the USA formally fell over the fiscal cliff but were cushioned by the belated adoption of an austerity package, averting negative consequences for the economy.

ICE Gasoil contract for January delivery settled at 927.00 dollars on Monday. This was 6.00 dollars below Friday's settlement. With some 23,800 deals the traded volume was below average.

The stochastic oscillator is slightly bullish for Brent and WTI this morning but simultaneously, at the overbought level. The RSI is touching the 70%-line with WTI and breaching the line could trigger a selling signal. For G.Oil, however, the stochastic is potentially bullish with the indicator's line already touching, giving off a bullish signal only when the lines are crossing. In all, the technical constellation is rather bullish, given the continuously sound upward trend with Brent and WTI as well as the breach of interim resistances at WTI and technical signals. In face of the overbought situation, more upward movement is rather unlikely. But futures may trade up in view of current signals and test their upward potential. As far as the traded volume is concerned, it might take a couple more days until markets go back to normal after the holidays.

U.S.

Nymex Access slightly bullish: The compromise yield in U.S. budget talks keeps supporting the market, slightly boosting futures in the early morning and currently giving them upward potential. Trading interest is clearly above average for this time of day. Market participants are waiting for the European market to open and for economic data to be released today.

Survey of US Petroleum inventories due out tonight at 22:30 (API) and Wednesday at 16:30 (DOE).

Crude oil -1.5; distillates +1.6; gasoline +1.4 million barrels vs previous week.

Houston (ex-wharf indications 31-12)

380cst $623
180cst $668
MGO $1010

New Orleans (ex-wharf indications 31-12)
380cst $633
180cst $668
MGO $1005

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

WTI is bullish with +$1.97. Paper for Dec 180cst +$5.50 and for 380cst +$7.95 , Jan contracts were trading with 180cst +$5.45, 380st +$7.95. The cargo market went in downwards direction with 180cst -$6.62, 380cst -$6.02 and MGO -$1.15.

The Singapore markets lost ground, dropping more than -$6.0 to flat during the Platts window last Monday. The latest heavy residual inventory report showed a marginal draw of -0.5 mbbl to 19.5 mbbl. The delivered bunker premiums were seen at $3.5 above cargo prices. This morning the markets are trading higher.

High premiums for prompt deliveries.
380 cst $613
180 cst $620
MDO $937

ARA (Amsterdam - Rotterdam - Antwerp)

Most the ports in NWE experienced difficulties with prompt deliveries due to existing or expected barge tightness. Some bunker suppliers noted that loading terminals were expected to operate for only few days due to holidays and had restricted fuel volumes on the loading side as well, sources said. Rotterdam continued to experience difficulties with low sulfur fuel oil availabilities.

Indications for delivered bunkers:
380cst : $ 590
(1.0 %) :$ 620
180cst: $ 620
(1.0 %):$ 650
MGO 0.1%S: $ 928