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WTI crude oil futures extended gains this morning, after rising more than $1 the previous day after weekly supply data showed a sharp fall in U.S. stocks last week.

After oil futures at ICE and NYMEX had already pulled back from their long-time lows Tuesday night, on Wednesday morning quotations were buoyed by the good economic data out of China and the API's slightly bullish report on US oil inventories. Futures thus held steady initially. However, the renewed rise in Libya's oil output to a 5-month high of 600,000 bpd kept gains at ICE in check. In the course of the day, market players were waiting for the DOE's official data on US oil stocks. The DOE's report was due at 4.30 p.m. in the afternoon and came in bullish. Oil prices in London and New York climbed immediately after the release of the report but eventually the bullish note only supported WTI until late in the evening. The rest of the contracts soon shed the gains they had marked after the release of the data. In all, only WTI was able to make considerable headway on Wednesday, whereas futures at ICE consolidated sideways and NYMEX gasoline even hit new lows in late trade - despite the bullish inventories data.

ICE Gasoil contract for August delivery settled at 873.50 USD on Tuesday, this is -9.75 USD below Monday's settlement. With some 82,300 deals the traded volume (front month) was far above average.

The stochastic indicator already gave a bullish signal yesterday but its effect is still lasting today. The indicator thus renewedly points to a test of the resistances of the downtrends at ICE and NYMEX charts. At the WTI chart, the RSI has meanwhile exceeded 30% giving an additional buying signal whereas this signal hasn't been confirmed at the ICE charts yet. If the RSI also surpasses 30% at the Gasoil and the Brent chart sustainably breaching the key-resistances from 101.60 to 106.65 USD, resp. 107.50 USD Brent, there would be more bullish cues that would accelerate the rise. From a merely technical point of view, the situation is slightly bullish at the moment due to the signals of the stochastic indicator and the RSI. The crucial point will be, however, whether Brent and WTI exceed their downtrends or if the contracts remain below the key-resistances edging lower again.

U.S.

Nymex on avarage: In early morning trading, oil futures consolidated staying within a narrow range. Meanwhile the are edging lower but investors are still waiting for decisive cues. The traded volume at NYMEX is on average for this time of day. Investors will monitor stock and forex markets today keeping a close eye on the developments in Iraq, Ukraine and Libya. They are also looking ahead to today's economic indicators.

API: Crude oil -4.8; Distillates +1.3; Gasoline -1.6 million barrels vs previous week.
DOE: Crude oil -7.5; Distillates +2.5; Gasoline +0.2 million barrels vs previous week.
Forecasts: Crude oil -2.5; Distillates +2.0; Gasoline +0.9 million barrels vs previous week.

Houston (ex-wharf indications 17-7)
380cst $583
180cst $677
MGO $966

New Orleans (ex-wharf indications 17-7)
380cst $593
180cst $678
MGO $964

Singapore (delivered indications 17-7)

WTI is up with +$0.75. Singapore paper is up with +$0.65 for 180cst and +$1.10 for 380cst for Aug, and for Sep 180 cst +$0.20 and 380cst with +$0.35 with MGO contracts being bearish in Aug with +$0.13 and in Sep with +$0.10. The cargo market is bullish with 180cst +$0.90, 380cst with +$0.07 and MGO with -$0.30.

The Singapore fuel oil prices managed to inch higher app. $1.0 during the Asian Platts window yesterday tracking more stable crude prices. The delivered bunker premiums were around +$6.5 above cargo. Outright bunker prices have softened significantly tracking the drop in crude prices however demand remains soft.

380cst $595
180cst $610
MGO $890

Fujairah (delivered indications 17-7)

380cst $608
180cst $640
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $578
(1.0 %) : $603
180cst: $618
MGO 0.1%S: $858