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U.S. oil futures inched lower on Wednesday, as investors looked ahead to key U.S. weekly supply data due later in the day to gauge the strength of oil demand from the world’s largest consumer.

After Monday's losses, traders at ICE and NYMEX stayed on the side lines Tuesday morning. European investors still focused on the Crimean crisis and the risk premium that is linked to it. Markets only saw some movement when Vladimir Putin spoke to the press in Moscow around noon. Putin assured that Russia didn't want to annex even more regions of Ukraine. Futures at ICE briefly slipped after these comments. However, Gasoil didn't breach its key-support at 885.00 dollars sustainably. With the technical downward potential having been limited, traders thus took the chance to cover their short positions pushing oil futures back up again in the afternoon. The fact that pro-Russian units stormed a Ukrainian military base in Crimea (with two soldiers killed) at that time is likely to have added to impetus. In the remainder of the day WTI held relatively steady compared to the futures at ICE. A new pipeline in the USA is to be put on stream earlier than expected. This increased new bets on the spread between the US and the European crude oil contract. Particularly WTI received a fillip and so the price discount regarding the Brent contract with delivery in May renewedly narrowed to about 8.25 USD. The data on US oil inventories released by the API later on Tuesday evening had no larger effects on oil markets so far.

ICE Gasoil contract for April delivery settled at 891.50 USD on Tuesday. This was +2.00 USD above Monday's settlement. With some 43,800 deals, the traded volume of the front month was below average.

The RSI gave a buying signal at the WTI and the Gasoil chart yesterday as it surpassed 30% sustainably. The stochastic indicator at the Gasoil chart is still neutral, at the Brent chart it is slightly bearish and at the WTI chart slightly bullish. The indicator thus doesn't give any clear signal for oil markets. The buying signal of the RSI bolstered oil futures yesterday evening but its impact is likely to wane now as the downtrends at the ICE charts seem to be intact again after futures had tried to exceed them on Friday. These trends are limiting the upside, which is why we still assess the technical constellation as neutral.

U.S.

Nymex cooling: Futures at ICE approached yesterday's high in electronic trading this morning, whereas WTI hardly moved consolidating on a high level. The traded volume at NYMEX is slightly above average for this time of day. Traders are now watching the development at stock and forex markets eying today's economic data and keeping an eye on the development of the situation in the Ukraine and Libya, the nuke talks with Iran and the DOE's data on US oil inventories due at 3.30 p.m.. The FOMC's statement might also bring some new cues this evening.

Houston (ex-wharf indications 19-3)
380cst $589
180cst $682
MGO $995

New Orleans (ex-wharf indications 19-3)
380cst $642
180cst $678
MGO $990

Singapore (delivered indications 19-3)

WTI is bullish with +$0.73. Singapore paper is bullish with +$1.25 for 180cst and +$0.00 for 380cst for Apr, and for May 180 cst +$0.00 and 380cst +$0.35 with MGO contracts being bearish Apr +$0.22 and May +$0.20. The cargo market is bearish with 180 cst -$5.06, 380cst -$5.01 and MGO -$1.14.

The Singapore fuel oil prices fell app. -$5.0 during the Asian Platts window yesterday tracking the fall in crude prices. The delivered bunker premiums moved higher to around $6.0 on stronger demand as outrights prices softened.

380cst $602
180cst $615
MGO $910

Fujairah (delivered indications 19-3)

380cst $608
180cst $640
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $578
(1.0 %) : $648
180cst: $618
MGO 0.1%S: $855