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Crude oil prices fell in Asia this morning on profit taking after overnight gains of growing tensions between the Ukraine and Russia.

After oil futures saw some profit taking on Wednesday morning, the bullish tendency took the upper hand in the course of the day. Since there were renewed delays in the reopening of Libyan oil terminals and insiders don't expect exports to be resumed before Sunday, investors once again focused on the bullish topics - like the tensions between Russia and the West. Threats on both sides are worrying market players. Therefore, investors hedged the risk of an escalation of the tensions and the risk of further sanctions (that might also affect Russia's energy sector) by increasing their long positions. The strong resistance at 108.15 USD Brent at first kept a lid on the upward potential, however, the more so as market participants were waiting for the DOE's data, which were released at 4.30 p.m.. The DOE's report didn't really provide clear cues but in late trade the bullish tone prevailed. The sharp draw in gasoline stocks generated a steady tendency at US markets and so the spread between Brent and WTI significantly narrowed. Early this morning, it only amounted to about 4.30 USD. Prices also profited from the softer greenback that made dollar-denominated oil cheaper for investors outside the USA. The US currency declined after the release of the FOMC's meeting minutes yesterday evening.

ICE Gasoil contract for April delivery settled at 903.50 USD on Wednesday. This was +12.75 USD above Tuesday's settlement. With some 29,500 deals, the traded volume of the front month was below average.

Both the stochastic indicator and the RSI are still neutral this morning giving no fresh cues. Quotations at oil markets renewedly rose yesterday but Brent failed to breach its resistance at 108.10 USD which is limiting the trading range to the upside this morning. If the contract sustainably breaks above this level today more technical stop-loss buying orders might be generated. This would cause a technical rise. Since there are no clear cues at the moment, we still assess the technical situation as neutral, however.

U.S.

Nymex far above average: After yesterday's late rise at oil markets, investors took some profits in electronic trading this morning reacting on the disappointing economic data out of China. Meanwhile, they have regained some ground. The traded volume at NYMEX is far above average for this time of day. Market players are now monitoring the development at stock and forex markets. They will also keep an eye on today's economic indicators, on the OPEC's monthly energy report and on the situation in Libya and in Ukraine.

API: Crude oil +7.1; Distillates +0.3; Gasoline -3.6 million barrels vs previous week, refinery utilisation -2.2%; cushing +0.8.
DOE's: Crude oil +4.0; Distillates +0.2; Gasoline -5.2 million barrels vs previous week.
Forecasts: Crude oil +1.4; Distillates +0.0; Gasoline -1.0 million barrels vs previous week.

Houston (ex-wharf indications 10-4)
380cst $591
180cst $706
MGO $988

New Orleans (ex-wharf indications 10-4)
380cst $621
180cst $706
MGO $989

Singapore (delivered indications 10-4)

WTI is climbing +$1.59. Singapore paper rose aswell with +$3.55 for 180cst and +$2.90 for 380cst for Apr, and for May 180 cst +$2.75 and 380cst $2.45 with MGO contracts being bullish Apr +$0.55 and May +$0.53. The cargo market is bullish with 180 cst +$3.50, 380cst +$5.36 and MGO +$0.81.

The Singapore fuel oil prices rose yesterday $5.5-3.5 during the Asian Platts window. The delivered bunker premiums softened to $4.5-2.5/mt impacted by muted demand and ample supply. Visco spread weakened in the front with spot closing at $5.21/mt yesterday. May is trading at app.$6.75/7.25 while forward prices remain stable trading in a range of $6.75-7.0/mt for the rest of the year.

380cst $590
180cst $608
MGO $920

Fujairah (delivered indications 10-4)

380cst $599
180cst $633
MGO $982

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $581
(1.0 %) : $634
180cst: $621
MGO 0.1%S: $867