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Crude oil prices rebounded in Asia this morning after a decline on U.S. supplies reaching an all-time high in weekly EIA data going back to August 1982.

Oil markets remained relatively calm on Wednesday morning as market participants avoided larger transactions. Until the afternoon, oil futures at ICE consolidated in a narrow range in thin trading, with investors waiting for new cues from Ukraine or the DOE's report on US oil inventories. Since the data the API had released the night before had provided a rather bullish impression compared to the survey, selling pressure (fundamentals) slightly waned. As to the technical constellation, the situation remained rather bearish as the stochastic indicator had already given a selling signal at the Brent and the Gasoil chart on Tuesday. Thus, the bullish and the bearish factors offset each other in the course of the day. Since there were no negative news from Ukraine, either, market players focused on the DOE's data due at 4.30 p.m. on Wednesday afternoon. Compared to the survey and the figures of the API, the DOE's report came in clearly bearish and so oil futures plummeted in late-afternoon trade. The selling pressure the DOE's data had generated only ebbed after 6 p.m.. Oil futures made up for some of their losses due to the instable situation in Ukraine. Market players - particularly those in London - still avoided speculative short-risks cutting their short positions in late trade. Whilst Brent even climbed back above its first support, Gasoil settled with losses. WTI only slightly retreated after the release of the DOE's data. According to analysts, this is due to the draw in crude oil stockpiles in Cushing, the delivery hub for WTI futures.

ICE Gasoil contract for May delivery settled at 918.00 USD on Wednesday. This was -2.75 USD below Tuesday's settlement. With some 52,000 deals, the traded volume was on average.

Oil futures have declined for two consecutive days after the stochastic indicator had given a selling signal. Even though the indicator is still slightly bearish, the RSI hasn't provided a confirming selling signal so far. Thus, the downward potential generated by the selling signal of the stochastic indicator is likely to have been largely spent. Only if oil futures drop below yesterday's lows and/or the RSI slips below 70%, will the technical selling pressure increase again. Accordingly, we assess the technical constellation as rather neutral this morning, despite the still slightly bearish stochastic indicator at ICE charts.

U.S.

Nymex below avarage: Oil futures remain clearly above yesterday's lows still struggling to find a clear direction. The traded volume at NYMEX is clearly below average at this time of day showing that market players stay cautious. 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.

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: Crude oil +3.5; Distillates +0.6; Gasoline -0.3 million barrels vs previous week.
Forecasts: Crude oil +3.0; Distillates -1.9; Gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 24-4)
380cst $601
180cst $675
MGO $994

New Orleans (ex-wharf indications 24-4)
380cst $618
180cst $666
MGO $993

Singapore (delivered indications 24-4)

WTI rose with +$0.11. Singapore paper is down with -$1.10 for 180cst and -$1.00 for 380cst for May, and for Jun 180 cst -$0.45 and 380cst -$.035 with MGO contracts being bearish May -$0.70 and Jun -$0.63. The cargo market has lowered with 180 cst -$0.74, 380cst -$1.04 and MGO slightly down with -$0.30.

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 $593
180cst $612
MGO $938

Fujairah (delivered indications 24-4)

380cst $600
180cst $638
MGO $984

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $582
(1.0 %) : $627
180cst: $622
MGO 0.1%S: $890