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Crude oil prices rebounded marginally in early Asia this morning with events in Libya a focus.

Oil futures at ICE and NYMEX started weak on Tuesday morning and followed technical bearish guidelines. Technical selling pressure increased due to the breach of the key support at 732.00 USD Gaoil. There were no considerable price fluctuations until the afternoon and prices consolidated in a narrow range as there was no important economic data on the agenda on Tuesday. Since the technical analysis kept weighing on the price level and recent statements of some OPEC representatives indicate that the cartel won't cut production the futures tendency stayed rather bearish. Brent dropped to a new 4-year-low due to a sharp price slide at the ICE in late trading. Since the US crude oil sort increased together with NYMEX gasoline futures the spread between Brent and WTI decreases. Quotations at ICE hold on to their intraday losses and therefore settled lower in the evening.

ICE Gasoil contract for November delivery settled at 725.00 USD on Tuesday, this is 17.50 USD below Monday's settlement. With some 27,600 deals the traded volume (front month) was far below average.

The stochastic indicator at the WTI and the Brent chart stay bearish even though there were no fresh sinals. Meanwhile, gasoil's indicator crossed and triggered a confirming selling signal. The RSI might generate y buying signal by crossing the 30 line but further stays without any important signals. Even though the Stochastic's selling signals at the Brent and the WTI chart are mostly absorbed due to the upward movement on Monday evening and yesterday's day volatility, we consider the technical constellation and the Gasoil stochastic indicator's confirming bearish signals as bearish for the time being.

U.S.

Nymex below avarage: Futures are trading in a narrow range without providing direction demonstrating the market players cautiousness. The traded volume at NYMEX is still below average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots. Today, there are no important economic indicators on the agenda, as well as the reports of the OPEC, the EIA and the IEA.

Forecast: Crude oil -0.5; Distillates -1.6; Gasoline -0.3 million barrels vs previous week.
API: Crude oil +1.1; Distillates -1.5; Gasoline +0.4 million barrels vs previous week.

Houston (ex-wharf indications 12-11)
380cst $448
180cst $530
MGO $837

New Orleans (ex-wharf indications 12-11)
380cst $464
180cst $521
MGO $835

Singapore (delivered indications 12-11)

WTI is losing with -$0..41 Singapore paper is down with -$2.85 for 180cst with -$2.50 for 380cst for Nov, and for Dec 180 cst -$2.85 and 380cst with -$4.00 with MGO contracts Nov bearish with -$0.30 and in Dec with -$0.25. The cargo market is losing with 180cst -$5.30, 380cst gaining with -$3.67 and MGO with -$2.14.

380cst $482
180cst $502
MGO $730

Fujairah (delivered indications 12-11)

380cst $480
180cst $525
MGO $932

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $438
(1.0 %) : $445
MGO 0.1%S: $724