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After yesterday's rise, oil futures largely consolidated on a high level this morning. Brent attempted to breach its resistance at 108.20 USD, but slightly lost ground afterwards. Gasoil, however, stayed near Wednesday's high and near its first resistance. In the meantime, traders are waiting for news from Brussels on new sanctions against Russia.

Trade at oil market at first remained subdued on Wednesday morning as bullish and bearish factors offset each other in morning trade. Whilst the API's data on US oil inventories and the technical constellation indicated a decline in oil futures, the announcement of sanctions against Russia soon being stepped up and news on Libya's oil output having decreased supported prices. With the downing of two Ukrainian war planes and the attack on an oil tanker in Tripolis by militia, the bullish components took the upper hand, however. Futures at ICE and NYMEX thus breached several resistances. Still, traders were waiting for the DOE's official data on US oil inventories that was released at 4.30 p.m. in the afternoon. The DOE's report contained bullish as well as bearish factors. After the release of the data, oil futures proved rather volatile but eventually, the bullish cues provided by the sharp draw in US crude oil stockpiles prevailed. Oil futures thus settled with considerable gains. Since it is still unclear how the announced sanctions of the EU and the USA will affect Russia and the oil industry, traders tended to raise their long positions at the end of the day. Analyst Carl Larry with Oil Outlooks and Opinions explained this tendency saying it would be "better to be safe than sorry". Only gasoline futures at NYMEX shed their earlier gains settling with losses as the DOE's data came in bearish for this category.

ICE Gasoil contract for August delivery settled at 887.25 USD on Wednesday, this is +4.75 USD above Tuesday's settlement. With some 48,100 deals the traded volume (front month) was slightly below average.

The stochastic indicator was still bearish at ICE and NYMEX charts yesterday morning. This morning its bias (at least partly) changed. Whilst the lines of the indicator are meeting at the WTI chart rendering the indicator neutral at this chart, they have already crossed at the Gasoil and the Brent chart. That means that the stochastic indicator has meanwhile given a buying signal at these ICE charts. The technical constellation has turned slightly bullish again given the buying signals at the Gasoil and the Brent chart. This favours a test of the upside, even though market players are waiting for a confirming signal at the WTI charts. Brent might find strong resistance near 108.20 USD. The North Sea crude oil contract has already tested this marker. If it surpasses it sustainably, its next key-support is at 108.60 USD - last week's high.

U.S.

Nymex easing: Oil futures stayed near yesterday's highs in electronic trading this morning testing first resistances. Meanwhile, they have edged lower again, however, as market players are taking some profits. The traded volume at NYMEX is on average for this time of day. Traders will eye the development at stock and forex markets today. They will also keep monitoring the situation in Iraq, Ukraine, Israel and Libya and on the raft of economic indicators that is due today. Moreover they are looking ahead to the EU's and the USA's sanctions against Russia.

API: Crude oil -0.6; Distillates +2.5; Gasoline +3.6 million barrels vs previous week.
DOE: Crude oil -4.0; Distillates +1.6; Gasoline +3.4 million barrels vs previous week.
Forecasts: Crude oil -2.8; Distillates +2.0; Gasoline +1.0 million barrels vs previous week.

Houston (ex-wharf indications 24-7)
380cst $592
180cst $673
MGO $975

New Orleans (ex-wharf indications 24-7)
380cst $599
180cst $670
MGO $978

Singapore (delivered indications 23-7)

WTI is gaining with +$0.88. Singapore paper is back up as well with +$3.75 for 180cst and +$4.50 for 380cst for Aug, and for Sep 180 cst +$3.20 and 380cst with +$3.35 with MGO contracts Aug gaining with +$0.85 and in Sep with +$0.86. The cargo market is losing with 180cst -$3.80, 380cst with -$1.63 and MGO with -$0.31.

The Singapore fuel oil prices erased previous gains and lost more than $2.5 during the Asian Platts window yesterday. The delivered bunker premiums remained firm at app. $11.0-8.50 above cargo. The fuel oil ex-wharf market supply remains tighter than usual especially for higher viscosity products. Visco spreads weakened even more and closed significantly low at $0.78/mt yesterday. August is trading at app.$5.50/mt while forward prices are assessed in a range of $7.25-8.0/mt for the rest of the year. This morning markets are trading slightly higher.

380cst $595
180cst $602
MGO $882

Fujairah (delivered indications 24-7)

380cst $610
180cst $638
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

(delivered indications 24-7)
380cst : $578
(1.0 %) : $590
180cst: $599
MGO 0.1%S: $864