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After oil futures had already gained ground again yesterday, supported by the bloody clashes in Egypt and by lower crude oil stockpiles in the USA as reported last night, they have extended their gains this morning. When oil prices then breached their first resistance, the upturn accelerated. Consequently, the oil market marked first highs. While G.Oil already rose to 939.25 USD, Brent breached its resistance at 111.00 USD, climbing up to 111.41 USD. WTI had meanwhile tested its 107.70 USD-marker. Moreover, the stronger euro also added to the upward potent.

In the first half of the day, oil futures in London and New York had been edging lower. First resistances had proved to be strong and the bearish API data released the night before prompted market players to take some profits. Consequently, Brent, WTI and O.Oil all fell to their second support. However, downside was limited by the positive GDPs released in the euro zone and by ongoing turmoil in Egypt where the military had declared a state of emergency. After 4.30 p.m., however, the tide was turning. Oil prices climbed back into the win zone in late trade Wednesday, reacting to the rather bullish DoE data and so did not match the API’s figures from the previous night. So oil futures at ICE and NYMEX breached several resistances and consequently settled at their day’s highs. As a result, the double top formation failed to materialize and thus, the necessary technical signals for a downward correction have not been triggered.

ICE Gasoil contract for September delivery settled at 926.00 USD on Wednesday. This was 1.75 USD below Tuesday's settlement. With some 54,400 deals the traded volume was below average.

Yesterday morning, a double top was about to form at the Brent chart. After breaching its resistance at 110.05 USD, however, the bearish formation could not materialize and thus technical buying orders sent oil prices up. The Stochastic remains neutral as its both lines do still not cross. As distinct technical signals are lacking this morning, we stick to our neutral stance for the time being.

U.S.

Nymex bearish: Oil markets stick to their strong tendency this morning and prices at ICE and NYMEX are ticking up again. They have been drawing support from news on the persisting violence in Egypt as well as from the slightly bullish DoE report, which was released yesterday.
The traded volume at NYMEX is clearly above 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 numerous economic data on the agenda in the USA today.

Houston (ex-wharf indications 14-08)
380cst $604
180cst $674
MGO $1009

New Orleans (ex-wharf indications 14-08)
380cst $605
180cst $653
MGO $1010

Singapore

Crude is bullish still, gaining with WTI +$1.16. Singapore paper is tracking crude with +$8.25 for 180cst and +$7.00 for 380cst for Sep, and for Oct 180 cst +$8.20 and 380cst +$7.75 with MGO contracts Sep +$1.17 and Oct +$1.23. The cargo market is not yet responding to the bullishness, losing with 180cst -$4.08, 380cst -$3.09 and MGO -$0.27.

The Singapore fuel oil market fell more than -$3.0 during the Asian Platts window yesterday. Market remains weighted down by ample supply as reflected by the weak cargo discount ranging -$4.0 to -$2.0. The delivered bunker premiums were between +$5.0 to +$6.0 above cargo prices. This morning markets are trading higher.

380cst $610
180cst $612
MGO $926

Fujairah (delivered indications 15-08)

380cst $610
180cst $660
MGO $990

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. In September ESSO Antwerp will have even more avail problems as they are working on maintenance of their refinery. Because of this, local Antwerp suppliers will need to buy more product in Rotterdam, therefor long waitinglines at Rotterdam refineries and storage are to be expected, with premiums on price as a result.

Indications for delivered bunkers:
380cst : $604
(1.0 %) :$619
180cst: $636
(1.0 %):$ 649
MGO 0.1%S: $ 912