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Oil prices inched higher in Asian trade this morning on hopes that a key US stockpiles report would beat bearish forecasts, easing concerns about tepid demand in the world’s top crude consumer.

ICE futures consolidated on their high level in Asian trading Tuesday, still supported by the threat of an escalation of the tense situation in Ukraine in a market anticipating the return of European operators after the long Easter week-end. At the beginning of the European session oil started losing ground on the liquidation of strategical long positions that traders had accumulated before Easter, and affected by some technical movements. Traders also kept an eye on the Ukraine where the situation stayed rather calm despite the failure of the peace agreement negotiated on Friday. In the absence of news to drive oil prices Gasoil and Brent at the ICE kept losing ground, falling as low as their key supports at 921,50 USD and 102,25 USD that proved strong at the time but were temporarily breached later in the course of the session in New York. WTI's drop was even steeper as the U.S. benchmark was weighed down by expectations of another build in U.S. crude stocks to near record highs. Moreover it was subject to an increased volatility the front-month contract having expired last night, while prices at the ICE stayed somewhat supported by the risk premium on the Ukraine. The API's report on oil stocks, released later in the evening, left a slightly bullish impression but nevertheless oil futures at ICE and NYMEX settled lower in the end, the Brent-WTI spread rising to above 7,70 dollars in Asia.

ICE Gasoil contract for May delivery settled at 920.75 USD on Tuesday. This was 6.75 USD below Monday's settlement. With some 52,300 deals, the traded volume was above average.

The stochastic indicator stays bearish at the ICE charts this morning, its two lines diverging, after having generated a selling signal on Tuesday. The RSI has established above the 70 trigger line, not giving any fresh signals yet. If the line was breached, a selling signal would be triggered that would open more downside for ICE prices. As long as this doesn't happen we assess the technical constellation still as neutral to bearish this morning. The WTI crude is not subject to technical considerations this morning as the future is penalized by U.S. oil stocks and spread betting and its technical indicators provide a false image.

U.S.

Nymex above avarage: Oil futures eased a bit in Asian trading this morning, extending yesterday's losses of the WTI contract and penalized by a disappointing Chinese indicator. The traded volume at NYMEX is above average at this time of day. Investors are monitoring the development at stock and forex markets. They will also keep an eye on today's economic indicators as well as at the developments in Ukraine and the release of the DoE's oil inventory report at 4.30 p.m

API: Crude oil +0.5; Distillates +0.6; Gasoline -3.4 million barrels vs previous week, refinery utilisation -2.2%; cushing +0.8.
DOE's: due out tonight.
Forecasts: Crude oil +3.0; Distillates -1.9; Gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 23-4)
380cst $604
180cst $680
MGO $997

New Orleans (ex-wharf indications 23-4)

380cst $620
180cst $669
MGO $993

Singapore (delivered indications 23-4)

WTI lowered with -$1.71. Singapore paper is also down with -$1.00 for 180cst and -$1.50 for 380cst for May, and for Jun 180 cst -$1.10 and 380cst -$1.60 with MGO contracts being bearish May -$0.22 and Jun -$0.22. The cargo market rose with 180 cst +$6.33, 380cst +$3.64 and MGO slightly down with +$0.50.

Singapore fuel oil prices rose between +$3.5 to +$6.5 during the Platts window following the crude prices. The delivered bunker premiums fell to between flat and $2.5 above cargo prices.

380cst $595
180cst $612
MGO $940

Fujairah (delivered indications 23-4)

380cst $600
180cst $640
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $582
(1.0 %) : $627
180cst: $622
MGO 0.1%S: $889