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Crude oil prices rose during Asian trading hours on this morning after Federal Reserve decided to cut USD10 billion from its USD75 billion monthly bond-buying program and U.S. supply data disappointed investors. On the NYMEX, WTI crude for delivery in March traded at USD97.62 a barrel during Asian trading, up 0.26%.

Oil futures at ICE and NYMEX showed a slightly softer tendency on Wednesday morning. The fact that the API Tuesday night reported builds in US crude oil stocks and a less than expected draw in distillate inventories in the USA slightly weighed on prices at that time. However, markets were very volatile and so the decline was not sustainable. Therefore, oil futures saw an upward correction in the early afternoon breaching several short-term resistances. Still, this also remained but a short-lived phenomenon as investors were waiting for new cues from the DOE's data on US oil inventories and from the FOMC's meeting results due later on Wednesday evening. Market participants wanted to avoid being caught on the wrong foot seizing the short rise at oil markets for profit taking. The DOE's data renewedly bolstered oil futures, however. The surprisingly sharp draw in product stocks and the rise in product demand outweighed the bearish effect of the builds in US crude oil stockpiles making oil futures at ICE as well as at NYMEX settle near their intra-day highs. The Fed yesterday decided during the meeting of its open market committee to renewedly cut its bond buying program by 10 billion dollars. This has been widely expected already. Consequently, there were no larger price jumps last night.

ICE Gasoil contract for February delivery settled at 923.75 USD on Wednesday. This was +6.25 USD below Tuesday's settlement. With some 53,600 deals, the traded volume was on average.

The lines of the stochastic indicator have crossed at the Brent and the WTI chart giving a buying signal. At the gasoil chart, the lines of the indicator have also crossed but the buying signal is less distinct. However, the RSI has dropped back below 70% at ICE charts giving bearish cues. At the WTI chart the RSI still hovers above 70%. Since technical signals provided by the stochastic indicator and the RSI are not homogenous, we assess the technical constellation as neutral this morning. Near 108.00 dollars to 108.05 dollars and near 97.75 to 97.85 dollars Brent, resp. WTI, found relatively strong resistances which are capping upward potential so far. The downside is limited near 107.10 and 106.50 dollars for Brent and near 96.50 dollars for WTI. Only below these key-levels are more technical buying or selling orders expected.

U.S.

Nymex neutral: Oil futures struggled to find a clear direction in electronic trading this morning consolidating on a high level. The traded volume at NYMEX is below average for this time of day. Investors are now eying the development at stock markets waiting as well as for new cues from forex markets. They will also keep an eye on the situation in the geopolitical hot spots. Moreover, they will monitor today's economic data, as well as the DOE's data on US oil inventories.

Forecasts: Crude oil +2.0; Distillates -2.5; Gasoline +1.7 million barrels vs previous week.
API: Crude oil +4.7; Distillates -1.8; Gasoline +0.4 million barrels vs previous week.
DOE: Crude oil +6.4; Distillates -4.6; Gasoline -0.8 million barrels vs previous week.

Houston (ex-wharf indications 30-1)
380cst $596
180cst $676
MGO $1008
New Orleans (ex-wharf indications 30-1)
380cst $607
180cst $662
MGO $1000

Singapore

WTI is cooling, climbing with +$0.29. Singapore paper is back on its bullish track with +$3.00 for 180cst and $0.00 for 380cst for Feb, and for Mar 180 cst +$1.65 and 380cst +$1.40 with MGO contracts slightly bearish Feb +$0.10 and Mar +$0.17. The cargo market is bullish with 180 cst +$3.71 , 380 cst +$3.80 and MGO -$0.59.

The Singapore fuel oil market continued to stay firm, closing more than $3.5 up during the Asian Platts window yesterday. The latest Singapore heavy residual inventory drew -2.02 mbbl to +16.87 mbbl. The delivered bunker premiums extended its support and rose higher to app. $12.5 above cargo prices. The Singapore market will be closed tomorrow on Lunar New Year holiday and market will reopen next Monday. This morning both markets are trading slightly higher.

380cst $622
180cst $633
MGO $920

Fujairah (delivered indications 30-01)

380cst0 $628
180cst $653
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $578
(1.0 %) : $612
180cst: $608
MGO 0.1%S: $ 888