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ICE Gasoil contract for June delivery settled at 865.25 USD on Wednesday. This was -10.50 USD compared to Tuesday's settlement. With some 64.800 deals the traded volume was slightly below average.

OPEC: On Friday, investors will focus on the OPEC's regular meeting. Since Brent is still trading above 100 dollars, a threshold that is considered as a fair price level by the cartel's members, market players don't expect that the OPEC will change its production quota. Last year, the organisation agreed on a production ceiling of 30 mbpd. The discussions over a new secretary general might also stoke investors interest. There is a Saudi candidat and an Iranian candidat. In case the OPEC agrees on Saudi Arabia's candidate, the effect on oil prices is likely to be rather bearish, as Saudi Arabia's production policy is considered as "consumer-friendly". In contrast to Iran, Saudi Arabia has rarely promoted output cuts over the past years. However, the OPEC might not agree on a candidate tomorrow. The organisation already failed to find an agreement on a candidate during the last meetings.

The stochastic indicator gives a selling signal at the WTI chart this morning after having given a buying signal at the beginning of this week. At ICE charts, the indicator is still neutral as its lines have but met (Brent), resp. converged (Gasoil) so far. Despite the selling signal for the WTI, we assess the technical situation as neutral this morning as investors might cover their short positions after yesterday's price slump. Anyway, focus will remain rather on fundamentals pushing the technical constellation slightly into the background. If prices show a sustainable decline below Wednesday's lows, however, technical selling pressure is likely to increase again evoking a selling signal for Brent as well.

U.S.

Nymex bearish: Oil futures have slightly recovered from yesterday's late losses during Asian trading this morning. The traded volume at NYMEX is about average for this time of day. Market players are now eying the performance of European markets and are waiting for today’s economic data. Due to the holiday in the USA on Monday, U.S. oil inventories are released a day later than usual this week. Thus, the DoE's data are due this afternoon at 5.00 p.m.

DOE: due out tonight
Forecast: Crude oil - 0.4; distillates +0.1; gasoline -0.3 million barrels vs previous week
API: Crude oil + 4.4; distillates +3.1; gasoline +1.9 million barrels vs previous week

Houston (ex-wharf indications 29-05 )
380cst $585
180cst $664
MGO $950

New Orleans (ex-wharf indications 29-05)

380cst $609
180cst $657
MGO $959

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

Crude is losing with -$1.52. The paper market is dropping like a stone with June 180cst -$9.15 and for 380cst -$8.75, and July contracts with 180cst -$9.15, 380st -$8.75. The cargo market is slowing with 180cst +$3.12, and 380cst +$3.50 and MGO +$0.74.

The Singapore fuel oil markets extended gains by more than $3.0 during the morning Platts window yesterday. Bunker demand was said to be soft and supply was ample. The delivered bunker premiums remained around $7.00 above cargoes prices. This morning both markets are trading down.

380cst $598
180cst $607
MGO $865

Fujairah (delivered indications 30-05)

380cst $612
180cst $678
MGO $1010

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $584
(1.0 %) :$ 609
180cst: $ 614
(1.0 %):$ 640
MGO 0.1%S: $ 860