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Oil prices have climbed above their first resistance lines in a rather technically driven, lackluster trade this morning. They have already pulled back from their highs by midday, however, trading sideways in a narrow range. Some US data are scheduled later this afternoon, along with the DoE's data at 4.30 p.m. and the Fed's Beige Book which will provide information on the state of the US economy and serves as a basis for regarding the Fed's interest rate decisions. After Ben Bernanke's comments investors now eye every cue regarding the current economic situation to receive some direction.

Gains at stock markets and hopes on new measures of quantitative easing shortly ahead of Ben Bernanke's speech in front of the US Congress made oil futures trade steady on Tuesday morning. After the G.Oil's support at 889.95 dollars proved strong, oil prices exceeded their first resistance lines, marking new highs in early afternoon trade. Ahead of Bernanke's testimony, some market players reduced their short positions but quotations remained on a high level then. The Fed president's statements regarding the US economy brought some bearish cues around 4 p.m. triggering profit taking at oil markets and at the euro and equities. Bernanke's economic outlook was more pessimistic than before, whereas he did not provide the detailed clues for an intervention by the US Fed which investors had hoped for. Only in late trade the negative impact on oil prices ebbed so quotations recovered settling with slight gains.

After the statements of the US Fed's chairman Ben Bernanke investors at financial markets seemed disappointed. Bernanke said the labor market would take longer to recover whereas the government's efforts regarding austerity would not bolster the economy. They thus had to be implemented slowly and with contemplation. There were no detailed plans regarding an intervention of the banks of issue, however. According to Bernanke, the Fed had not yet decided on any particular measures. Even though these statements had a clearly bearish impact on oil markets, the negative tone eased in the course of the evening.

ICE Gasoil contract for August delivery settled at 894.50 dollars on Tuesday. This was 5.00 dollars above Monday's settlement. With some 58,400 contracts the traded volume was on average.

While the stochastic indicator is still slightly bullish at the WTI charts, it gives a selling signal at G.Oil charts. As to the Brent, the indicator's lines only touch and so it can still be considered as neutral for the benchmark blend. The RSI still moves below the 70%-line in the neutral zone whereas the stochastic points to an overbought market. Thus technical analysts still assess the situation as neutral. If the stochastic indicator's lines cross at the crude oil charts too, there will be technical selling signals that might lead to a correction down.

U.S.

Nymex access losing: Oil futures traded slightly lower in Asian trading and on Globex electronic trading platform this morning remaining in a narrow range whereas they show a downward tendency. The traded volume is far above average. Market players look ahead to the performance of equities and forex markets today as well as economic indicators and the DOE's data on oil inventories.

API's: Crude oil -2.0; distillates +3.4; gasoline -0.1 million barrels vs previous week. Refinery utilization -1.5%

DOE's; due out tonight

Forecasts: Crude oil -1.1; distillates +1.3; gasoline +0.8 million barrels vs previous week

Houston (ex-wharf indications 17-7)

380cst $601
180cst $626
MGO $945

New Orleans (ex-wharf indications 17-7)

380cst $598
180cst $626
MGO $940

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

Crude is slowing with WTI +$0.38. Singapore paper is slowing as well, but not yet turning with +$0.50 for 180cst and +$1.00 for 380cst for Aug, and for Sep 180 cst +$0.20 and 380cst +$1.00 with MGO contracts Aug +$0.39 and Sep +$0.41. The cargo market fully reacting to Yesterdays bullishness with 180cst +$13.87, 380cst +$13.34 and MGO +$2.08.

The delivered bunker premiums softened to around $7.25/mt above cargo prices yesterday as demand remained soft on high outright prices. 180 cst Cargo FOB papers were slightly softer having gained a dollar in the front while losing a little at the backend of the curve. Despite this little relative weakness if the Asian prices markets added a little to the backwardation discount of the forward curve. Markets are trading slightly down this morning.

High premiums for prompt deliveries.

380 cst $616
180 cst $628
MGO $870

ARA (Amsterdam - Rotterdam - Antwerp)

Both hsfo and lsfo are still bullish, tracking Brent. Continuing loading delays, cutter stock shortages and arbitrage loadings reported. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 600
(1.0 %) :$ 652
180cst: $ 624
(1.0 %):$ 695
MGO 0.1%S: $901