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Nymex crude prices fell on Thursday after a soft U.S. inventory report.

Oil futures in London and New York started with a slightly steadier tendency on Wednesday morning. At that time, futures were supported by the rise in China's crude oil imports, by the sharper than expected draw in Cushing crude oil stockpiles and by the EIA's bullish monthly energy report. In addition to this, the OPEC released its monthly report in the early afternoon, which too was regarded as bullish adding to the upside from market fundamentals. Quotations breached several resistances in the early afternoon triggering more technical buying. While oil futures traded on a higher level, market players waited for the DOE's data on US oil inventories, which were to be released at 4 p.m. later that day. The DOE's figures gave mixed cues. At first, the sharper than expected draw in Cushing crude oil stocks gave prices a fillip but later in the evening, the bearish cues prevailed. The builds in crude oil stocks across the USA and the less than expected draw in distillate stocks prompted investors to take some profits. Some futures even tested their supports. At last, oil futures settled near their intra-day lows. The spread between Brent and WTI has renewedly widened amounting to some 8.80 USD.

ICE Gasoil contract for February delivery settled at 919.50 USD on Wednesday. This was ±0.00 USD compared to Tuesday's settlement. With some 105,700 deals, the traded volume of the front month was below average.

The stochastic indicator gave a selling signal at ICE as well as at NYMEX charts as its lines have crossed. This favors a downward move, even though the uptrends at NYMEX are still intact. At the Brent chart a bottom has formed near the levels at 108.40 and 108.45 dollars. If Brent falls below this level of support, technical selling pressure should increase even more. At the WTI chart, the RSI still hovers above 70%. The indicator might confirm the selling signal of the stochastic if it breaks below this level. Given the fresh selling signals of the stochastic indicator, we assess the technical situation as bearish this morning. The RSI at the WTI chart as well as the key supports at the Brent chart should be monitored for they might give additional signals.

U.S.

Nymex cooling: Given the DOE's data on US oil inventories, oil futures had already declined yesterday evening. They extended their losses this morning as the technical constellation favored some profit taking. The traded volume at NYMEX is above average for this time of day. Market players are now monitoring the development at stock markets waiting for new cues from forex markets. They are also looking ahead to today's economic data.

API: Crude oil +2.1; Distillates -1.5 ; Gasoline -0.5 million barrels vs previous week.
DOE: Crude oil +3.3; Distillates -0.7; Gasoline -1.9 million barrels vs previous week.
Forecasts: Crude oil +2.6; Distillates -2.1; Gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 13-2)
380cst $602
180cst $684
MGO $1006

New Orleans (ex-wharf indications 13-2)
380cst $613
180cst $654
MGO $1010

Singapore (delivered indications 13-2)

WTI is bearish with -$0.93. Singapore paper is on a bearish track with -$2.00 for 180cst and -$1.75 for 380cst for Feb, and for Mar 180 cst -$2.25 and 380cst -$3.00 with MGO contracts being bearish Feb -$0.69 and Mar -$0.57. The cargo market is bullish with 180 cst +$6.03, 380cst +$5.46 and MGO +$0.06.

380cst $618
180cst $630
MGO $935

Fujairah (delivered indications 13-2)

380cst0 $618
180cst $648
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $578
(1.0 %) : $628
180cst: $608
MGO 0.1%S: $ 891