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U.S. oil futures fell from the previous session’s three-week high this morning, as investors assessed the outlook for oil demand from the world’s largest consumer.

Futures at ICE and NYMEX started with a steadier tendency on Wednesday morning, supported by the slightly bullish technical constellation. Brent rose to the resistance at 109.80 USD, which limited its short-term uptrend. At first, this marker kept gains in check prompting investors to take some profits. But the tendency at oil markets remained steady and so, oil futures but slightly lost ground ahead of the release of the DOE's report. The data on US oil inventories pushed prices significantly higher once again. This was due to the rise in demand for oil products which bolstered futures altogether. Brent surpassed its resistance at 109.80 USD generating more technical buying orders leading to more gains in late trade. In Libya, production at the El Feel oil field in the west of the country has been resumed but the bullish impact of the DOE's report clearly outweighed this factor and so quotations settled with considerable gains.

ICE Gasoil contract for June delivery settled at 915.25 dollars on Wednesday. This was +9.25 USD above Tuesday's settlement. With some 71,000 deals, the traded volume was clearly above average.

Brent's sharp rise and its break above the short-term uptrend yesterday generated an additional buying signal at ICE charts. This morning, the RSI dropped back below 70% at the Brent chart, however, giving a selling signal. At the WTI chart, the RSI is still hovering above this level, only confirming the selling signal at the Brent chart if it drops below 70% as well. The stochastic indicator neither gives new cues at ICE charts, nor at NYMEX charts. If the lines of the stochastic indicator cross in the course of the day, there would be another selling signal favoring technical profit taking, the more so as the markets are increasingly overbought. Nonetheless, we still assess the technical situation as neutral as the signals that might trigger a clearly corrective move are still lacking.

U.S.

Nymex on average: After yesterday's late rise caused by the DOE's data on US oil inventories, market players took some profits earlier this morning. The traded volume at NYMEX is on average at this time of day. Investors are now monitoring stock and forex markets, awaiting news regarding Ukraine, Libya and the negotiations with Iran as well as today's economic indicators. Apart from that they are eying the DOE's data on US oil inventories. Moreover, the IEA is going to release its monthly energy report today.

API: Crude oil +0.9; Distillates +0.9; Gasoline -2.0 million barrels vs previous week.
DOE: Crude oil +0.9; Distillates -1.1; Gasoline -0.8 million barrels vs previous week.
Forecasts: Crude oil -1.0; Distillates +1.0; Gasoline +0.3 million barrels vs previous week.

Houston (ex-wharf indications 15-5)
380cst $608
180cst $684
MGO $985

New Orleans (ex-wharf indications 15-5)
380cst $610
180cst $664
MGO $984

Singapore (delivered indications 15-5)

WTI is down with -$0.29. Singapore paper is down aswell with -$1.50 for 180cst and -$0.60 for 380cst for May, and for Jun 180 cst -$1.40 and 380cst -$0.85 with MGO contracts being bullish May +$0.25 and Jun +$0.19. The cargo market is bullish with 180 cst +$4.94, 380cst +$3.42 and MGO +$0.94.

The Singapore markets gained $3.5-4.0/mt during the Platts window yesterday. HSFO market remains supported by expectations of lower arbitrage from the West in June. Visco spreads have gained some strength again and closed at $11.54/mt yesterday. June is trading at app.$10.50/mt while forward prices remain stable trading at app.$8.5/mt for Q3 and app.$7.25/mt for Q4.

380cst $592
180cst $615
MGO $922

Fujairah (delivered indications 14-5)

380cst $603
180cst $640
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $579
(1.0 %) : $636
180cst: $619
MGO 0.1%S: $886