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The U.S. trade gap narrowed unexpectedly in February as crude oil imports fell to their lowest level since March 1996 and overall exports increased slightly, a Commerce Department report on Friday showed. The deficit narrowed to $43.0 billion, from an unrevised $44.5 billion in January. The consensus estimate of Wall Street analysts surveyed before the report was for the trade gap to widen slightly to $44.6 billion. The lower-than-expected deficit could prompt analysts to raise their estimates of first-quarter U.S. economic growth. The United States imported 205 million barrels of crude in February, down sharply from 261 million the previous month. The 17-year low came as monthly crude oil import prices rose nearly $2 a barrel from January to $95.96.

ICE Gasoil contract for April delivery settled at 888.00 USD on Thursday. This was 24.75 USD below Wednesday's settlement. With some 67,300 deals, the traded volume was above average.

Due to Wednesday’s price slump at the oil market, quotations started rangebound on Thursday as investors were waiting for the ECB meeting and the upcoming economic data. As expected, the European central bank left its key interest rate unchanged at 0.75%. The weekly U.S. job market figures fell short of expectations since initial jobless claims had increased in the reported week. Along with the disappointing ADP report, which was released on Wednesday, the data raise concerns on U.S. oil demand and as a result, traders continued to take profits. Consequently, oil prices at ICE and NYMEX breached several supports, triggering technical stop-loss orders which were additionally favoured by the bearish technical constellation and the fundamental situation in general. Only in the late evening did selling pressure decline as the euro climbed up. In the end, oil futures gained some ground again. Consequently, the spread between Brent and WTI further narrowed.

Opec news: According to the British service provider, Oil Movements, OPEC’s seaborne oil exports are to decrease by 120,000 barrel/day until April 20.

Oil shipments will amount to an average of 23.7 million barrel/day.

The Stochastic still is largely bearish although much of the technical selling pressure might have been used up due to the profits taken the past days. Also, its lines are gradually converging again. The RSI is in the neutral zone at the moment and is not giving off any fresh signals. Technically, the Stochastic oscillator remains slightly bearish but the selling pressure already dates back a few days .

U.S.

Nymex bearish: After some short-coverings in late trade yesterday, market players have taken a backseat this morning. The traded volume at NYMEX is slightly below average for this time of day. Traders are waiting for the European markets to open, for signals from forex trading as well as for today’s economic indicators, with particular focus on U.S. job market data.

Houston (ex-wharf indications 03-04
380cst $611
180cst $663
MGO $1010

New Orleans (ex-wharf indications 03-04)
380cst $613
180cst $648
MGO $1010

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

Crude is losing on bearish US news with -$1.33. The paper market is waiting for other indicators, with April 180cst staying neutral +$0.75 and for 380cst +$0.15, and May contracts with 180cst -$1.00, 380st -$0.55. The cargo market is reacting dropping with 180cst -$18.34, and 380cst -$18.57 and MGO -$2.55.

The Singapore fuel oil markets shredded a massive -$18 during the morning Platts window yesterday tracking crude values. The latest Singapore heavy residual inventory saw a slight draw of -0.75 mbbl to 16.35 mbbl; one of the recent lows, however, it should balance out by western arbitrages for April that is expected at a 3 month high. The delivered bunker premiums were around $8.5 above cargo prices yesterday. This morning the markets are trading higher.

High premiums for prompt deliveries.
380 cst $616
180 cst $620
MGO $900

Fujairah (delivered indications 05-04)

380cst $624
180cst $670
MGO $1015

ARA (Amsterdam - Rotterdam - Antwerp)

Even due to long waiting lines at some refineries and storages, no problems for prompt enquiries are to be expected.

Indications for delivered bunkers:
380cst : $595
(1.0 %) :$ 610
180cst: $ 625
(1.0 %):$ 650
MGO 0.1%S: $ 875