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West Texas Intermediate oil futures re-approached a two-week low hit earlier in the week this morning, as traders braced for a highly-anticipated European Central Bank meeting.

After the sharp losses oil futures had marked at the beginning of the week, prices at ICE and NYMEX increased on Wednesday morning. Market players expected bullish figures on US crude oil stockpiles cutting the short positions they had raised in the days before. Oil futures' rise was accelerated by a technical buying signal. The lines of the stochastic indicator had crossed at ICE charts and thus provided bullish cues. However, the RSI didn't confirm the buying signal and so technical buying orders remained limited, the more so as investors were waiting for the DOE's report. The DOE's data came in bullish for crude oil but in the course of the evening, the bearish factor provided by the figures on demand prevailed. Quotations in London and New York thus slumped in the evening, with ICE Gasoil (June) hitting a new 2-month-low.

ICE Gasoil contract for June delivery settled at 883.75 USD on Wednesday. This was -0.75 USD below Tuesday's settlement. With some 42,300 deals, the traded volume (front month) was below average.

The stochastic indicator briefly gave a buying signal at ICE charts yesterday as its lines had crossed in the morning. Investors focused on the DOE's data on US oil inventories, however, which is why the signal had hardly any influence on oil markets. In the course of the day, the buying signal thus dissolved and so, the stochastic indicator as well as the RSI can be interpreted as neutral again this morning. But if the lines of the stochastic cross once again, there might be another buying signal. The RSI would give a bullish signal if it surpasses 30%. The oversold market would then additionally favour a technical upward move. However, there would have to be buying signals first. As long as these signals are lacking, the merely technical constellation is still neutral.

U.S.

Nymex above avarage: After yesterday's sharp decline, oil futures are consolidating on a low level this morning struggling to find a direction. The traded volume at NYMEX is slightly above average at this time of day. Market players are now closely watching stock and forex markets, looking ahead to the release of some economic indicators. They are also eying the ECB's rate decision and the press conference following the ECB's meeting.

API: Crude oil -1.4; Distillates -0.3; Gasoline +0.8 million barrels vs previous week.
DOE: Crude oil -3.4; Distillates +2.0; Gasoline +0.2 million barrels vs previous week.
Forecasts: Crude oil -1.0; Distillates +0.5; Gasoline +2.0 million barrels vs previous week.

Houston (ex-wharf indications 5-6)
380cst $601
180cst $719
MGO $987

New Orleans (ex-wharf indications 5-6)
380cst $605
180cst $685
MGO $981

Singapore (delivered indications 5-6)

WTI is down with -$1.08. Singapore paper is down with -$6.00 for 180cst and -$5.50 for 380cst for Jun, and for Jul 180 cst -$5.15 and 380cst with -$4.25 with MGO contracts being bearish in Jun with -$0.89 and in Jul with -$0.90. The cargo market is bearish with 180 cst -$0.17, 380cst with -$1.38 and MGO is down with -$0.01

Singapore fuel prices were trading lower ranging between -$1.5 to flat during the Platts window. Fundamentals were expected to tighten due to regional demands and also overall lower incoming arbitrages. The delivered bunker premiums were creeping stronger between +$4.0 to +$6.5 above cargo prices yesterday. In Rotterdam Barges rose $1.0 in the window. The spread between delivered prices and cargo prices remain unchanged between $0.75 - $1.0.

380cst $604
180cst $622
MGO $900

Fujairah (delivered indications 5-6)

380cst $610
180cst $643
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $577
(1.0 %) : $633
180cst: $617
MGO 0.1%S: $853