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U.S. oil futures traded near a six-month low this morning, while London-traded Brent futures held close to a four-month low on fears Russian sanctions will dampen the global recovery.

Oil futures at ICE and NYMEX remained in a narrow range between their first support and their first resistance until the early afternoon. The slightly bullish market fundamentals and the technical constellation favored a test of the upside in the afternoon, however, even though traders were still waiting for the release of the DOE's data. The bullish inventories report released by the API Tuesday night prompted investors to raise their long positions already before the DOE's figures were due. Oil futures thus gained ground. Particularly for product futures, the DOE's data came in bullish which is why futures of this category consolidated on a high level Wednesday evening. In contrast to this, market players tended to take profits with crude oil futures after the release of the DOE's report as the less sharp than expected draw in US crude oil inventories was regarded as rather bearish cue. Whilst Brent finished trading near its lows Wednesday night, Gasoil stayed near its highs guiding the way for the slight price increases this morning.

ICE Gasoil contract for August delivery settled at 878.75 USD on Wednesday, this is +9.25 USD above Tuesday's settlement. With some 31,400 deals the traded volume (front month) was below average.

The lines of the stochastic indicator are converging again at the Brent chart and so, the indicator is no longer bullish. At the Gasoil chart, the stochastic indicator is pointing to more tests of the upside but at the WTI chart the lines of the indicator have crossed giving a selling signal. The RSI didn't surpass 30% at the Brent chart dropping further down into oversold territory. Thus, the technical constellation doesn't provide any decisive cues so far, which is why we consider the technical situation as neutral this morning.

U.S.

Nymex above avarage: This morning there is but little movement at oil markets but this might change as soon as investors try to adjust the price differences between crude oil and product futures that was generated by the DOE's data yesterday. The traded volume at NYMEX is slightly above average for this time of day. Traders are now waiting for the opening of stock and forex markets. They will keep an eye on the development in Iraq, Ukraine, Israel and Libya. Today, only few economic indicators are on the agenda. However, the ECB's meeting will be in the spotlight.

API: Crude oil -5.5; Distillates -0.5; Gasoline -3.6 million barrels vs previous week.
DOE: Crude oil -1.8; Distillates -1.8; Gasoline -4.4 million barrels vs previous week.
Forecasts: Crude oil -1.5; Distillates +0.7; Gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 7-8)
380cst $584
180cst $672
MGO $962

New Orleans (ex-wharf indications 7-8)
380cst $590
180cst $670
MGO $959

Singapore (delivered indications 7-8)

WTI is down with -$0.67. Singapore paper is down with -$0.25 for 180cst and -$1.30 for 380cst for Aug, and for Sep 180 cst -$0.75 and 380cst with -$0.90 with MGO contracts Aug gaining with +$0.50 and in Sep losing with -$0.47. The cargo market is gaining with 180cst -$0.86, 380cst losing with -$2.86 and MGO gaining with -$0.72.

The Singapore fuel oil prices fell -$3.0 to -$1.5 during the Platts window tracking the weak crude values. The Singapore market remains firm with strong buying for bunker specification cargoes as premiums continue to be bid up on lower incoming arbitrages. Delivered bunker premiums were at +$9.5 to +$11.5 above cargo yesterday. Barges fell $3.5 in the window and delivered premiums is trading $2 to $4 above.

380cst $593
180cst $605
MGO $875

Fujairah (delivered indications 7-8)

380cst $610
180cst $645
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

(delivered indications 7-8)
380cst : $570
(1.0 %) : $584
180cst: $559
MGO 0.1%S: $854