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Crude oil futures held near the previous session's multi-month lows this morning, as ample supplies and concerns about weak demand continued to weigh.

The slightly bearish technical constellation and market fundamentals have sent oil futures at ICE and NYMEX lower on Wednesday morning. Oil futures already breached first supports in the early morning. Even though this seemed to indicate further downward potential already, the supports at 98.80 USD Brent and at 92.50 USD WTI at first remained strong. Investors tended to stay on the side lines ahead of the release of the OPEC's monthly energy report and of the DOE's data on US oil inventories, covering some of their short positions. In all, market sentiment stayed bearish, however, as market players expected that both releases would draw a bearish picture of the oil market. The OPEC's monthly energy report matched these expectations, which is why selling pressure renewedly increased. Oil futures, particularly ICE Gasoil, sharply declined. The release of the DOE's data at 4.30 p.m. later in the afternoon lead to another sell-off. The weekly data on oil stocks came in clearly bearish making oil futures at ICE and NYMEX slump once again in late trade. Quotations thus settled with lows they hadn't hit for a long time. Brent slid to a 17-month-low. Gasoil and WTI hit their lowest level in 16 months.

ICE Gasoil contract for September delivery settled at 831.00 USD on Wednesday, this is -16.00 USD below Tuesday's settlement. With some 42,800 deals the traded volume (front month) was below average.

The selling signals of the technical indicators at ICE and NYMEX charts have meanwhile been spent. The stochastic indicator has lost its bearish impact as its lines are converging again. The indicator has thus turned neutral. The downtrends at ICE as well as at NYMEX remain intact, with Brent having seized nearly all of its downward potential, trading at the lower end of its trend. Since new technical cues are lacking, we assess the technical constellation as neutral this morning The lack of fresh technical cues, and the fact that the stochastic indicator and the RSI are in overbought territory might prompt investors to cover some of their short positions. These would bolster oil prices. Still, the intact downtrends are pointing to an overall bearish development at oil markets.

U.S.

Nymex above avarage: Oil futures edged lower this morning, keeping track of yesterday's losses. The traded volume at NYMEX is above average for this time of day. Market players are now eying the development at stock and forex markets. They will also keep focusing on the situation in Ukraine, Iraq and Libya and today's economic indicators. Apart from this, the IEA's monthly energy report is on the agenda today.

Forecasts: Crude oil -1.5; Distillates +1.0; Gasoline ±0.0 million barrels vs previous week.
DOE: Crude oil -1.0; Distillates +4.1; Gasoline +2.4 million barrels vs previous week.
API: Crude oil -1.9; Distillates +1.7; Gasoline +0.7 million barrels vs previous week.

Houston (ex-wharf indications 11-9)
380cst $574
180cst $654
MGO $950

New Orleans (ex-wharf indications 11-9)
380cst $581
180cst $667
MGO $946

Singapore (delivered indications 11-9)

WTI is losing with -$1.36 Singapore paper is down with -$1.75 for 180cst with -$2.75 for 380cst for Sep, and down for Oct 180 cst -$1.50 and 380cst with -$2.50 with MGO contracts Sep losing with -$1.53 and in Oct with -$1.54. The cargo market is gaining with 180cst -$0.87, 380cst with +$0.12 and MGO with -$0.61.

The Singapore fuel oil prices were mostly around parity during the Platts window. The delivered bunker premiums slipped to around +$7.0 to +$9.0 above cargo prices yesterday.

380cst $575
180cst $586
MGO $840

Fujairah (delivered indications 11-9)

380cst $608
180cst $638
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

Please be advised we have decided to dispense with 180cst RME180 indications either for HS or LS as part of our daily report for Rotterdam to clients. The reason being prices are so dependent on volume and dates that putting a figure to it is highly counter-productive and serves only to give false expectations to the customer. Avails are so limited these days and also premiums are charged for smaller quantities (due to the size of the tank required to be reserved for the blend) that it can really effect prices.

Indications for delivered bunkers:
380cst : $546
(1.0 %) : $553
MGO 0.1%S: $803