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Oil markets had seen a slight counter-reaction to yesterday’s losses this morning and tested their first resistance. However, as the first hurdle proved to be strong, oil futures slipped back to the lower end of their trading range. The euro, which was pulling back from its intraday high at 1.3370 USD, slightly weighed on prices. Moreover, the still bearish technical constellation as well as news on the nearing conclusion of repair works at the Trans-Niger pipeline and on Iraq’s plans to ramp up its oil production in the next quarter had all provided small bearish signals. Chinese economic data, however, gave off rather mixed cues. Although the trade balance surplus has been considerably lower than expected in July, it also showed that the world’s second biggest oil consumer imported essentially more crude in July than in the previous month. While Brent and WTI have only approached their first support, G.Oil even fell below its 901.25 USD marker, which has proved to be strong, however.

Oil futures at ICE and NYMEX edged lower during morning trading on Wednesday, slightly pressured by the rather bearish technical constellation. The break below Tuesday's lows additionally raised selling pressure, as expected. However, there soon was a counterreaction. Given the API's oil inventories data released Tuesday night, traders tended to stay on the sidelines and so oil prices climbed back above the supports they had breached before. The DOE's data released at 4.30 p.m. on yesterday were seen as slightly bearish, however. Therefore futures finally retreated. Particularly product futures dropped, whereas WTI only declined later in the evening, as the DOE's data had shown a massive draw in Cushing crude stocks. In all, futures finished with losses yesterday, even though this morning they already see a moderate upward correction.

ICE Gasoil contract for August delivery settled at 906.00 USD on Wednesday. This was 3.25 USD below Tuesday's settlement. With some 29,600 deals the traded volume was below average.
v The stochastic indicator remains slightly bearish this morning. However, its selling signal was already given days ago. Moreover, given the decline in oil prices during the past few days, the bearish potential has largely been spent. Therefore, we assess the technical constellation as neutral to bearish today. If the lines of the stochastic indicator continue converging, the bearish component might also disappear completely. Even though there are no signs of a buying signal yet, the resistance lines at ICE and NYMEX might give way to an upward correction.

U.S.

Nymex bearish: After the decline oil futures had seen during the past few days, market participants now seem to take profits from their speculative short positions. Therefore oil futures saw a slight upward correction early this morning. Meanwhile, prices are ticking lower again, however, as the euro pulls back from its second resistance. The traded volume at NYMEX is about average for this time of day. Market players are now waiting for European markets to open, for new signals from forex trading and for the economic data on the agenda today.

API: Crude oil -3,7 ; distillates +1,5 ; gasoline -1,0 million barrels vs previous week.
DOE: Crude oil -1,3 ; distillates +0,5 ; gasoline +0,1 million barrels vs previous week.
Survey: Crude oil -1.1; distillates -0.4; gasoline -0.5 million barrels vs previous week.

Houston (ex-wharf indications 07-08 )
380cst $581
180cst $659
MGO $997

New Orleans (ex-wharf indications 07-08)
380cst $586
180cst $632
MGO $998

Singapore (closed due to bank holiday 8-9 Aug)

380cst $597
180cst $600
MGO $910

ARA (Amsterdam - Rotterdam - Antwerp)

Due to the availability problems with hsfo ( long waiting time at refineries, only contracts with some ex wharf suppliers, less spot available at higher premiums) the spread between hsfo and lsfo is minimum.

Indications for delivered bunkers:
380cst : $600
(1.0 %) :$610
180cst: $612
(1.0 %):$ 625
MGO 0.1%S: $ 894