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Brent oil futures slipped toward $108 a barrel on Wednesday with investors reluctant to lock in positions ahead of a U.S. Federal Reserve policy decision on a plan to trim its monetary stimulus. Fed Chairman Ben Bernanke is expected to give details later in the day on when the U.S. central bank may start to reduce its $85 billion-a-month bond-buying program which has underpinned global assets including commodities and restrained the dollar in recent years. Brent crude was virtually flat near $108, after settling nearly $1 lower on Tuesday. US oil was marginally higher above $97, after ending 26 cents lower. Although a steady run of firm U.S. economic data in recent weeks has raised speculation the Fed could reduce its bond buying at its policy meeting ending later in the day, many investors think any tapering will happen next year.

ICE Gasoil contract for January delivery settled at 919.50 USD on Tuesday. This was -12.00 USD above Monday's settlement. With some 52,900 deals, the traded volume was on average.

Futures at ICE already retreated on Tuesday morning. Market participants had meanwhile digested the fact that oil export terminals in the east of Libya remained closed (even though they were to reopen at the weekend) refocusing on US oil inventories data instead. The DOE's figures are due to be released this afternoon. Since traders expected a draw in crude oil stocks and builds in distillate stocks yesterday, Brent and Gasoil showed a softer tendency on Tuesday, whereas WTI sharply rose in the afternoon. Focusing on oil inventories data, market players also raised their spreadbets again on Tuesday. Therefore, the spread between Brent and WTI narrowed to less than 11 dollars. Quotations at ICE were also slightly weighed down by news that strikes at one of the French refineries run by Total had been ended. Even though the strike is still continuing at other refineries, this was seen as a positive sign. Late in the evening, the API provided its oil inventories report showing a draw in US crude oil stocks as well as in product inventories. Therefore, the figures were interpreted as slightly bullish, limiting the downside at oil markets last night.

The stochastic indicator is still slightly bullish at the Brent and the WTI chart, whereas it can be seen as neutral at the Gasoil chart, see also technical analysis. However, the actual buying signals were already generated two days ago most of their impact having been spent on Monday. Consequently, we assess the technical constellation as neutral this morning, despite the still slightly bullish tendency of the stochastic indicator for WTI and Brent. Besides, investors are likely to focus on market fundamentals today, like the DOE's data on US oil inventories and the results of the FOMC's meeting.

U.S.

Nymex bearish: After the release of the API's slightly bullish report on US oil inventories, oil futures at ICE and NYMEX have recovered this morning pulling back from yesterday's lows. The traded NYMEX volume is far below average for this time of day. Market players are now eying the release of the DOE's data at 4.30 p.m. and the development at European stock and forex markets in order to receive new cues. Moreover, they are looking ahead to some economic indicators.

Survey: Crude oil -3.3; distillates +0.2; gasoline +1.8 million barrels vs previous week.
API: Crude oil -2.5; distillates -0.4; gasoline -0.5 million barrels vs previous week.
DOE: Due out tonight

Houston (ex-wharf indications 16-12)
380cst $598
180cst $670
MGO $999

New Orleans (ex-wharf indications 16-12)
380cst $618
180cst $654
MGO $1004

Singapore

WTI is up slightly with +$0.42. Singapore paper is bearish with -$4.25 for 180cst and -$5.00 for 380cst for Dec, and for Jan 180 cst -$3.75 and 380cst -$3.40 with MGO contracts Dec -$0.48 and Jan -$0.42. The cargo market is bullish with 180 cst +$1.65, 380cst +$1.10 and MGO +$0.61.

The Singapore fuel oil markets inched up more than +$1.0 during the Asian Platts window yesterday. The delivered bunker premiums remains around +$4.5 to +$5.0 above cargo prices with no significant changes in market fundamentals. This morning markets are trading down.

380cst $603
180cst $610
MGO $920

ARA (Amsterdam - Rotterdam - Antwerp)

Still a lot of lsfo problems in ARA. No loading prospects in Antwerp. At the moment suppliers are only offering from end of this week onwards.

Indications for delivered bunkers:
380cst : $580
(1.0 %) : $620 (if available)
180cst: $610
MGO 0.1%S: $ 878