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Oil futures at ICE and NYMEX have been trading sideways in a narrow range this morning. Although G.Oil tested its first resistance, it was not breached as guiding fundamental or technical signals have been lacking so far. As a result, market players have taken some profits and oil prices slightly slipped. Brent fell below its second support at 108.10 USD. The short-term uptrend, however, remains intact.

Oil traders had been waiting not only for Bernanke’s speech before Congress but also for the DoE’s inventory data. After making considerable gains during the past weeks, oil markets initially saw some profit-taking from long positions in morning trade. But as neither the technical constellation nor the fundamental situation provided decisive bearish signals in this phase, Brent’s and WTI’s supports at 107.35 USD and 105.30 USD, respectively, could not be breached sustainably and thus, oil prices regained considerable ground in the course of the afternoon. While U.S. housing market data came out worse than expected, Bernanke’s statements did not reveal anything new. Given the lack of direction, volatility increased at the oil market in the afternoon as investors were waiting for the DoE’s figures on U.S. oil inventories. Although the data was rather mixed, the bullish effect of the draw in crude stockpiles seemed to outweigh the bearish build in product reserves. Consequently, oil futures surged to the upper limitations of their short-term uptrend in the late evening. In the end, oil markets closed with net gains. Merely gasoline futures still saw some profit-taking in view of lower demand and higher inventories in the USA.

ICE Gasoil contract for August delivery settled at 923.75 USD on Wednesday. This was 4.00 USD above Tuesday's settlement. With some 45,400 deals, the traded volume was slightly below average.

While the Stochastic indicator is still neutral for Brent and WTI this morning, it has already turned slightly bullish for G.Oil. The RSI is scratching at the 70%-line but has not been able to breach its so far and thus does not give any new clues, neither at ICE nor at NYMEX. As oil futures failed to sustainably breach important supports, the short-term uptrend channel remains intact. Within this channel, traders might take profits again and again until the lower limitations of the uptrend. A sustainable downward correction can only be expected if these key supports are breached.

U.S.

Nymex bullish: After surging in late trade yesterday, oil futures have been consolidating at a high level this morning, not showing any distinct direction. The traded volume at NYMEX is slightly above average for this time of day. Market players are now looking ahead to the performance of European markets, to new signals from forex trading and to the economic indicators on the agenda today.

API: Crude oil -2,6 ; distillates +3,8 ; gasoline +2,6 million barrels vs previous week.
DOE: Crude oil -6,9 ; distillates +3,9 ; gasoline +3,1 million barrels vs previous week.
Survey: Crude oil -1.6; distillates +3.8; gasoline +2.6 million barrels vs previous week.

Houston (ex-wharf indications 18-07 )
380cst $592
180cst $673
MGO $999

New Orleans (ex-wharf indications 18-07)
380cst $595
180cst $627
MGO $1000

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

Crude is bouncing up strongly with +$1.22. The paper market is turning as well, gaining with Aug 180cst +$5.00 and for 380cst +$5.75, and Sept contracts with 180cst +$5.65, 380st +$5.65. The cargo market is rather mixed , with 180cst +$0.52, and 380cst -$0.09 and MGO -$0.27.

The Singapore 380 CST HSFO August swap fell $1.25/mt day on day to $601.75/mt Wednesday. But crude values fell more Wednesday. This morning markets are trading marginally down.

380cst $608
180cst $611
MGO $910

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $604
(1.0 %) :$610
180cst: $612
(1.0 %):$ 644
MGO 0.1%S: $ 909