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Crude oil edged up towards $111 a barrel on Wednesday, recovering slightly from a drop in the previous session, supported by the closure of the Brent pipeline system in the North Sea. Gains were limited as weak European data pushed down other risk-sensitive assets such as equities, and as OPEC released a downbeat assessment of demand for its oil output in 2013. Benchmark Brent crude oil futures for February were up 15 cents to $110.50 a barrel by 1346 GMT. The February contract, which expires later in the day, settled $1.58 lower in the previous session, while the more heavily traded March contract ended down $1.32. U.S. oil rose 5 cents to $93.33 a barrel. The Brent pipeline system, which with oil from other fields in the UK North Sea underlies the futures contract, was shut as a result of the closure of the Cormorant Alpha oil platform, affecting as much as 90,000 barrels per day.

The oil market started with a stronger tendency on Tuesday, but failed to breach the decisive resistances at 967.00 dollars G.Oil and 94.45 dollars WTI, correcting downwards in the early afternoon. The disappointing U.S. Empire State Index and profit-taking with the euro equally weighed on futures' prices at ICE and NYMEX in the further course of trading. In anticipation of a further build in inventories in the USA, there was only little upward potential yesterday, although the production stop at a North Sea oil platform definitely was a bullish factor. Charles Plosser, president of Philly Fed, gave a speech in the evening, broaching the issue of terminating quantitatve easing in order to limit inflation risk. While this boosted the U.S. dollar, oil prices slumped to their supports at 110.30 dollar Brent and 93.25 dollar WTI after Plosser's statement at 8 p.m. The API released its U.S. inventory data for the past week, which were less bearish than experts expected. Although traders are still waiting for the DoE data to be released in the afternoon in order to make a conclusive evaluation of inventory development in the USA, oil prices slightly corrected upwards in early morning trading.

ICE Gasoil contract for December delivery settled at 960.75 dollars on Tuesday. This was 6.25 dollars above Monday's settlement. With some 121,464 deals the traded volume was well above average.

The RSI has breached the 70%-line top-down, giving off selling signals for WTI. The stochastic oscillator is bearish for WTI, too. The indicator is, however, neutral for Brent and bullish for G.Oil. Due to the mixed signals this morning, there is no clear direction indicated and thus the technical analysis can be regarded as neutral. Traders probably wait for fundamental factors such as the DoE data and progress on the leaking platform in the North Sea.

U.S.

Nymex Access neutral to bearish: In early trading, futures are recovering from yesteday's lows since the API data was not as bearish as expected and supports at Brent and WTi proved to be strong. Trading interest at NYMEX is above average for this time of day. Market participants are waiting for the European market to open, for signals from the forex market and for economic data to be released in the course of the day, with the DoE data being particularly important.

Houston (ex-wharf indications 15-01)
380cst $626
180cst $699
MGO $1015

New Orleans (ex-wharf indications 15-01)
380cst $645
180cst $689
MGO $1010

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

WTI is stable still with -$0.71. Paper for Jan are bearish, dropping with 180cst -$7.75 and for 380cst -$8.25 , Feb contracts are dropping as well with 180cst -$7.75, 380st -$8.25. The cargo market is bulish, rising with 180cst +$2.55, 380cst +$2.30 and MGO +$0.10.

The Singapore fuel oil market prices rose more than $2.0 during the Platts window yesterday. Market fundamentals remain weak with soft demand and ample supply. The delivered bunker premiums were around $4.5 above cargo prices. Bunker fuel oil swaps closed yesterday without major changed loosing a few cents along the curve for Singapore papers. This morning the markets are trading down.

High premiums for prompt deliveries.
380 cst $631
180 cst $634
MDO $950

ARA (Amsterdam - Rotterdam - Antwerp)

There were a few suppliers who were unable to supply for prompt deliveries due to busy schedules. The port of Rotterdam was experiencing difficulties with LSFO for prompt deliveries due to operational delays. Due to the tightness of LSFO in Antwerp the premiums are expected to be higher.

Indications for delivered bunkers:
380cst : $ 606
(1.0 %) :$ 639
180cst: $ 636
(1.0 %):$ 669
MGO 0.1%S: $ 955