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Oil futures had dropped below the lowest levels they had marked in 2014 until then on Tuesday already as investors expected massive builds in Cushing (Oklahoma) crude oil stockpiles. On Wednesday, Dec. 31, they kept track of their decline hitting even new longterm lows. In the early afternoon of the last trading day of 2014, oil futures hit new 5.5-year lows. However, they recovered in late trade. Whilst economic data out of China and the USA weighed on oil markets, some market players took advantage of the new lows, covering their short positions. Since trading volumes were rather low at the end of the year, the price moves weren't expected to last, though, which is why oil futures pared earlier losses in late trade. In the course of the day, the draw in US crude oil stockpiles had a bullish effect on futures whereas the builds in product stocks and in Cushing crude oil inventories had a bearish impact.

ICE Gasoil contract for January delivery settled at 512.25 USD on Wednesday, this is 13.50 USD below Tuesday's settlement. With some 18,400 deals, the traded volume (front month) was far below average.

The stochastic indicator is slightly bullish at the WTI and the Gasoil chart after its lines have crossed. Even so, the buying signals should have been largely spent by now. Moreover, the indicator has become almost neutral at the Brent chart already. However, the RSI has exceeded 30% at the WTI chart, providing a fresh buying signal. From a merely technical perspective, the constellation can thus be interpreted as neutral to bullish for the time being. Since the traded volume is rather low, the signals shouldn't be overrated, however.

U.S.

Nymex above avarage : Whilst oil futures gained ground Asian trading this morning against the the backdrop of the fire at one of Enbridge's oil storage places and the slightly bullish technical constellation, they have meanwhile shed some gains again. The traded volume at NYMEX is far above average at this time of the day. Market players are now looking ahead to the development at European financial markets and forex trade waiting for the economic indicators that are to be released today, as well.

Forecast: Crude oil +0.0; Distillates +1.9; Gasoline +2.4 million barrels vs previous week.
DOE: Crude oil -1.8; Distillates +1.9; Gasoline +3.0 million barrels vs previous week.
API: Crude oil +0.8; Distillates +0.3; Gasoline +1.7 million barrels vs previous week.

Houston (ex-wharf indications 2-1)
380cst $309
180cst $447
MGO $690

New Orleans (ex-wharf indications 2-1)
380cst $336
180cst $380
MGO $674

Singapore (delivered indications 2-1)

WTI is gaining with +$0.23. Singapore paper is up with +$5.25 for 180cst with +$5.25 for 380cst for Dec, and for Jan 180 cst +$5.30 and 380cst with +$4.85 with MGO contracts Dec bullish with +$0.80 and in Jan with +$0.78. The cargo market is losing with 180cst -$0.11, 380cst with -$0.222 and MGO with +$0.76.

380cst $318
180cst $335
MGO $550

Fujairah (delivered indications 2-1)

380cst $320
180cst $360
MGO $845

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers (29-12):
380cst : $276
MGO 0.1%S: $511