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Crude oil prices held close to $93 per barrel Wednesday on the New York Mercantile Exchange as traders expect bullish weekly inventory reports. The Energy Information Administration's weekly stockpile report due Wednesday afternoon is expected to show an inventory drop for crude oil, as is Thursday's inventory report on natural gas. Overnight, West Texas Intermediate crude oil for April delivery gained 3 cents to $92.76 per barrel. Due to thin news, oil futures traded sideways between their resistances and their supports in the first half of the day on Tuesday. As guiding fundamentals were lacking, the oil market was geared by the euro which eventually drove up oil prices in the early afternoon. When ECB’s Jens Weidemann said yesterday that the euro’s current strength does not pose a threat to the European economy, the common currency received a boost which carried over to the oil market. However, traders seized the upward reaction to lock in profits and thus, not only the euro’s but also oil futures’ surge stalled and the markets returned from their day’s highs. Furthermore, the monthly oil reports released by the EIA and OPEC yesterday were also largely regarded as bearish since both institutions had corrected down their forecasts on global oil demand growth. During late trade, oil prices at ICE tested their support levels, marking new lows, while WTI traded with a relatively firm tendency. As a result, the spread between the two crude benchmarks, Brent and WTI, has narrowed again to below 17 USD. This indicates that market players seized the day to cover their spread bets given that the supply situation in the North has recovered in the past few days. In the late evening, the API released its weekly data on U.S. oil inventories. Although the data turned out more bullish than expected, it has hardly affected the oil market so far.

ICE Gasoil contract for March delivery settled at 924.25 USD on Tuesday. This was 3.75 USD below Monday's settlement. With some 129,000 deals the traded volume was far above average.

The Stochastic remains bearish for ICE futures as the indicator’s lines had crossed yesterday morning and a selling signal was triggered. The RSI, however, is bullish at ICE at the moment since the 30%-line was breached bottom-up. At the WTI chart, neither the Stochastic nor the RSI are giving off any fresh signals to give direction. Due to contradictory signals at ICE charts, we consider the technical view as neutral. Consequently, the technical analysis fades to the background today, the more so as important fundamental indicators such as U.S. retail sales, DoE data and the IEA’s monthly report are released in the course of the day. The support level around 109.00 USD (Brent) may be decisive today. If the North Sea crude managed to sustainably breach this support, technical selling pressure would increase so that the 108 USD mark comes within reach in the course of the week.

U.S.

Nymex losing: Oil futures at ICE and NYMEX are slightly retreating this morning. The euro edges higher but Asian stock markets are down, favouring profit-taking after the bearish monthly oil reports. The traded volume at NYMEX is about average for this time of day. Investors are now waiting for the European markets to open, for new cues from forex trading, for the IEA monthly oil report and the DoE data on U.S. oil inventories as well as for the upcoming economic indicators.

Houston (ex-wharf indications 13-03)
380cst $613
180cst $655
MGO $1014

New Orleans (ex-wharf indications 13-03)
380cst $615
180cst $663
MGO $1016

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

WTI is going upwards, with +$1.24. Paper for Mar is going downwards with 180cst -$2.75 and for 380cst -$0.50, and Apr contracts with 180cst +$0.75, 380st -$1.25. The cargo market is waiting on other indicators to decide on which direction to move on 180cst +$1.30, and 380cst dropped -$0.39 and MGO -$0.72.

The Singapore fuel oil market remained in a similar assessment as previous trading session. Prices were mixed during the Platts window yesterday with the 180cst product increasing more than $1.0 while the 380cst cargo prices slipped around $0.25. The delivered bunker premiums were ranging between $5.0 to $7.0 above cargo prices. This morning the markets are trading slightly lower.

High premiums for prompt deliveries.
380 cst $632
180 cst $641
MGO $930

Fujairah (delivered indications 13-03)

380cst $638
180cst $685
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

HSFO and LSFO prompt deliveries slightly improved for some suppliers at the port of Rotterdam. However, In Antwerp barge congestions still reported at some loading terminals.

Indications for delivered bunkers:
4380cst : $ 603
(1.0 %) :$ 628
180cst: $ 633
(1.0 %):$ 658
MGO 0.1%S: $ 898