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Crude-oil futures fell slightly in Asia Thursday as trading remained subdued in a well-supplied market.On the New York Mercantile Exchange, light, sweet crude futures for delivery in October CLV4, -0.33% traded at $93.57 a barrel early Thursday in London, down $0.31 in the Globex electronic session. October Brent crude on London’s ICE Futures exchange LCOV4, -0.19% fell $0.13 to $102.59 a barrel. Nymex crude-oil prices didn’t react much to data that showed U.S. oil stocks fell 2.1 million barrels to 360.5 million barrels — the lowest level since Jan. 31 — in the week ended Aug. 22.

Futures at ICE and NYMEX advanced Wednesday morning bolstered by the API's bullish data on US oil inventories, by the decline in Saudi Arabia's oil exports and the renewed shut-down of the Buzzard oil field in the North Sea. Quotations tested their resistances but prices at ICE struggled to sustainably breach its resistances whereas WTI proved steadier. Since economic indicators and fundamental news were lacking in the early afternoon, traders were looking ahead to the release of the DOE's data at 4.30 p.m. The data failed to give oil markets a new direction, however, as it contained bullish as well as bearish cues. Particularly the less than expected draw in gasoline stocks dragged the other contracts down in the course of the evening. Overnight, futures regained some ground as investors covered their short-positions in NYMEX Heating oil futures. The front month contract is going to expire tomorrow prompting investors to cover their short positions. Moreover, reports said that Iraqi oil exports declined in August and the Libya might be on the brink of a civil war. Whilst WTI and Brent settled hardly changed compared to Tuesday, Gasoil and Heating oil marked some gains. Gasoline futures stayed softer.

ICE Gasoil contract for September delivery settled at 864.50 USD on Wednesday, this is +0.25 USD above Tuesday's settlement. With some 55,800 deals the traded volume (front month) was on average.

The short-term uptrends that are opposed to the superordinate downtrends have established having reinforced yesterday. On the short-run, these trends favor tests of the upside during which oil futures might approach their long-term resistances. However, one should keep an eye on the stochastic indicator at the Brent chart, where the lines of the indicator have crossed earlier this morning giving a selling signal. Since the short-term uptrends are still intact, we are still considering the technical constellation as neutral. If the indicators confirm the selling signal at the WTI and Gasoil chart, the constellation will turn slightly bearish leading to tests of the supports that are limiting the short-term downtrends.

U.S.

Nymex neutral: Oil futures showed no clear direction in Asia and in electronic trading this morning. The traded volume at NYMEX is below average for this time of day. Traders are now waiting for the development at stock and forex markets, too. They will also keep a close eye on the situation in Ukraine, Iraq and Libya. They are also waiting for economic indicators out of the USA and the Eurozone.

Whilst refinery run rates increased, crude oil and gasoline stocks in the USA declined in the week ending August 22. Distillate stockpiles showed builds, however.

The fact that refinery throughput remained on a high level lead to a draw in US crude oil stockpiles that was considered as slightly bullish. Distillate inventories increased less than expected but demand shrank by -0.357 mbpd. Therefore, the changes in this category were interpreted as rather bearish. Gasoline demand significantly rose by +0.325 mbpd last week but it is widely expected to decline in the coming weeks as the summer season is almost over. Stocks in this category dropped by -1.0 Barrels, which is far less than expected. Therefore, the figures regarding gasoline are bearish despite the rise in demand.

Houston (ex-wharf indications 26-8)
380cst $575
180cst $667
MGO $964

New Orleans (ex-wharf indications 26-8)
380cst $583
180cst $664
MGO $957

Singapore (delivered indications 28-8)

WTI is loosing with -$0.62. Singapore paper is up with +$1.50 for 180cst and +$0.75 for 380cst for Sep, and for Oct 180 cst +$0.95 and 380cst with +$0.50 with MGO contracts Sep gaining with +$0.25 and in Oct with +$0.27. The cargo market is gaining with 180cst +$4.75, 380cst with +$4.79 and MGO with +$0.74.

The Singapore fuel oil prices rose yesterday and were assessed app. $4.5 up during the Asian Platts window. The Asian Fuel Oil crack narrowed and there were also strong support in the bids, pushing physical premiums to more than $3.0/mt. The delivered bunker premiums were seen around +$7.75 above cargo prices. Visco spreads strengthened significantly recently and closed at $8.47/mt yesterday. September is trading at app.$9.0-9.25/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 $589
180cst $602
MGO $869

Fujairah (delivered indications 28-8)

380cst $604
180cst $638
MGO $982

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $565
(1.0 %) : $572
180cst: $595
MGO 0.1%S: $838