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Crude oil prices fell during the Asian trading hours on Thursday after the news of a new U.S. oil pipeline starting to transport 300,000 barrels of crude a day, which will reduce the amount of U.S. oil stuck in storage. On the NYMEX, WTI crude for delivery in March traded at USD96.63 a barrel during Asian trading, down 0.14%.

After yesterday's late highs oil futures have slightly retreated in electronic trading this morning slightly weighed down by the disappointing reading of the HSBC's Chinese purchasing manager index. The traded volume at NYMEX is on average for this time of day. Market players are now eying the development at stock markets waiting for new cues from forex markets. They will also keep monitoring the situation in Libya, Iraq and South Sudan. Moreover, a raft of economic data is due to be released today which might also give markets a new direction. Market participants are also focusing on the DOE's data on US oil inventories today.

ICE Gasoil contract for February delivery settled at 919.00 USD on Wednesday. This was ±0.00 USD compared to Tuesday's settlement. With some 49,500 deals, the traded volume was slightly below average.

The selling signal the stochastic indicator gave at the Gasoil chart yesterday was not confirmed at the Brent or the WTI chart and so the indicator is already neutral again at all three charts. Therefore, we assess the technical constellation as neutral this morning. The RSI already seems poised to fall below 70% at the Gasoil chart. If the indicator also sustainably drops below this line at the WTI chart and if the stochastic indicator gives a selling signal at the Gasoil chart (if its lines cross) in the course of the day, the technical situation would turn from neutral to bearish. This might cause significant profit taking, the more so as the market is slightly overbought.

U.S.

Nymex neutral: After yesterday's late highs oil futures have slightly retreated in electronic trading this morning slightly weighed down by the disappointing reading of the HSBC's Chinese purchasing manager index. The traded volume at NYMEX is on average for this time of day. Market players are now eying the development at stock markets waiting for new cues from forex markets. They will also keep monitoring the situation in Libya, Iraq and South Sudan. Moreover, a raft of economic data is due to be released today which might also give markets a new direction. Market participants are also focusing on the DOE's data on US oil inventories today.

API: Crude oil +4.9; Distillates -2.3; Gasoline +1.1 million barrels vs previous week, refinery utilisation -2.2%; cushing +0.8.
DOE's: due out tonight.
Forecasts: Crude oil +1.7; Distillates -0.5; Gasoline +1.5 million barrels vs previous week.

Houston (ex-wharf indications 23-1)
380cst $588
180cst $674
MGO $979

New Orleans (ex-wharf indications 23-1)
380cst $607
180cst $663
MGO $987

Singapore

WTI is cooling slightly, climbing still with +$1.31. Singapore paper is gaining bullish momentum with +$2.85 for 180cst and +$4.00 for 380cst for Feb, and for Mar 180 cst +$3.35 and 380cst +$3.60 with MGO contracts slightly bullish Feb +$0.66 and Mar +$0.65. The cargo market is bullish with 180 cst +$2.49, 380cst +$2.00 and MGO -$0.11.

The Singapore fuel oil markets rose more than $2.0 during the Asian Platts window yesterday. The fuel oil cargo market remains firm. The delivered bunker premiums were ranging between +$7.0 to +$7.5 above cargo prices yesterday. This morning both markets are trading higher.

380cst $613
180cst $626
MGO $917

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $568
(1.0 %) : $597
180cst: $598
MGO 0.1%S: $ 889