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Oil prices were higher for a second session this morning as the recent selloff in oil markets stalled, but prices remained close to five-and-a-half year lows.

High volatility was to be seen at the oil market in early trading on Wednesday. Futures increased at first encouraged by short covering which was caused by bullish technical signals but bearish fundamentals predominated in the afternoon. Oil futures eased and eyed their Tuesday's lows again. Traders acted cautious before the release of the DOE oil inventory report as usual. The DOE data is to be interpreted bullish triggering severe reactions in a volatile market. Market players started to take profits from their short positions and engaged in long positions after the report. Oil futures at ICE and NYMEX marked fresh day highs and hesitantly tried to breach the upper limits of their steep downtrends. When these resistances were eventually breached a series of stop-loss buying orders was triggered automatically. A severe upward correction followed and the Brent price was slingshotted upward by more than 2.00 USD. Prices eased in the late evening, retreating from their Wednesday's highs as the overall fundamental constellation stays bearish due to the persisting oversupply.

ICE Gasoil contract for December delivery settled at 548.00 USD on Wednesday, this is 3.00 below Tuesday's settlement. With some 67,500 deals the traded volume (front month) was about on average.

Yesterday's early buying signal of the WTI's stochastic indicator was confirmed at the Brent and the Gasoil chart in the course of the day. The indicator is still bullish today after some signals at ICE and NYMEX. Further upside was triggered by the breakout out of the downtrends. Basically, this indicates further upward potential but a large part of the buying signals is expected to be absorbed already due tp the strong increase in late trading which reduced technical buying pressure. Therefore, we still consider the technical constellation as neutral to bearish like we did yesterday.

U.S.

Nymex above avarage: Futures at ICE hardly move in a narrow range compared to yesterday after a part of the price rallye has been absorbed during the night. The traded volume at NYMEX is far above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots and the economic indicators which are to be released today.

Houston (ex-wharf indications 18-12)
380cst $321
180cst $475
MGO $692

New Orleans (ex-wharf indications 18 -12)
380cst $343
180cst $438
MGO $693

Singapore (delivered indications 18-12)

WTI is gaining with +$1.87. Singapore paper is up with +$8.25 for 180cst with +$7.75 for 380cst for Dec, and for Jan 180 cst +$8.25 and 380cst with +$7.50 with MGO contracts Dec bullish with +$1.75 and in Jan with +$1.75. The cargo market is losing with 180cst -$5.63, 380cst with -$2.93 and MGO with -$0.60.

380cst $336
180cst $350
MGO $575

Fujairah (delivered indications 18-12)

380cst $325
180cst $365
MGO $866

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $308
(1.0 %) : $315
MGO 0.1%S: $558