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The price of crude oil edged up this morning as traders await information on damages after Hurricane Sandy hit the U.S. and shut East Coast refineries. Light Sweet Crude Oil (WTI) futures for December delivery, added $0.53 to $86.07 a barrel.

Yesterday, investors' focus was on hurricane Sandy, which menaced the US Eastcoast and put other news into the background. On Monday morning, trade was predominated by some profit taking as market players preferred to stay on the sidelines. Weaker equities and the retreating euro have favored the tests of the downward potential but the strong supports at 108.55 dollars for the Brent, at 85.40 dollars for the WTI crude and at 969.50 dollars for the Gasoil have limited losses. Since many refineries at the East coast had shut down or at least throttled production, Sandy's bullish factors prevailed in the early afternoon, however. Oil futures, particularly the NYMEX gasoline futures, gained considerable ground breaching their first resistance lines. The WTI crude kept trading relatively soft, as the supply of crude oil usually rises when refineries see production losses. According to analysts, this is also the main reason for the profit taking in late afternoon-trade that made oil futures pull back from their highs again. Still, quotations remained above the lows they had marked on Monday morning. Only the WTI crude has fallen through its supports, dropping near the 84.75 dollars mark. Traders said that market sentiment was rather nervous and sceptical, as NYMEX floor trade remained closed and investors avoided larger positions - be it long or short.

Hurricane Sandy: The biggest East Coast refinery in Philadelphia appears to have emerged undamaged from Hurricane Sandy and a smaller nearby plant operated without trouble, sources said on Tuesday as energy firms began assessing the storm's damage. Initial reports from the two facilities suggested that the region's fuel supplies may bounce back quickly after being almost completely halted ahead of Sandy, which came ashore on Monday evening with winds of up to 90 miles per hour (mph) and a record 13 foot storm surge, causing widespread power outages. But the situation still may be a tricky for a few days. Phillips 66 reported a power outage at its 238,000-bpd Bayway, New Jersey, plant late on Monday, after it had been shut down as a precaution. Experts say that could slow the recovery at the plant, which was also seen as the most vulnerable to flooding.

ICE Gasoil contract for November delivery settled at 970.50 dollars on Monday. This was 2.00 dollars above Friday's settlement. With some 52,400 deals the traded volume was on average.

The stochastic indicator is still slightly bullish, whereas it already gave its buying signals days ago. Therefore the indicator has lost some of its impact. The RSI remains below the 30%-line and so it doesn't provide any new buying signals either. Given the stochastic indicator, technical analysts still assess the situation as slightly bullish, whereas the technical constellation is put into the background by hurricane Sandy. Like yesterday, analysts expect that trade will be rather volatile as NYMEX floor trade will remain closed today, too. In which direction oil futures are heading, can only be told after new status reports on refineries and the US infrastructure at the US East coast.

U.S.

Nymex access neutral to bullish: Oil prices have traded sideways in East-Asia and on Globex electronic trading platform this morning. In the early hours of European trade, they have traded volume is on average. Investors now keep an eye on the development of Hurricane Sandy, on the performance of stock and forex markets and some economic indicators, as well as the release of the API's data on US oil inventories.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)
Crude oil +1.6; distillates -1.4; gasoline +0.0 million barrels vs previous week

Houston (ex-wharf indications 29-10)

380cst $617
180cst $692
MGO $1030

New Orleans (ex-wharf indications 29-10)

380cst $622
180cst $688
MGO $1018

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

The Singapore fuel oil markets fell marginally app. -$2.0 during the Platts window yesterday tracking crude movements. Market continues to be weak in Singapore as heavy incoming supplies are expected. The cargo premiums were seen at $0.5-1.0/mt. The delivered bunker premiums were around $6.25 above cargo prices. Bunker fuel oil swaps lost nearly $10/mt at the front of the forward curve for Singapore papers. Meanwhile backend was significantly stronger, posting, app.$5/mt losses. This morning the markets are trading slightly 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 : $ 596
(1.0 %) :$ 635
180cst: $ 626
(1.0 %):$ 665
MGO 0.1%S: $965