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WTI oil held on to gains from the previous session, while Brent prices climbed above $51-per-barrel this morning, as investors returned to the market to close out bets on lower prices.

Oil futures at ICE and NYMEX already eased on Wednesday morning expanding their Tuesday's long-term lows. Market players are still geared to the technical and fundamentally bearish constellation so that Brent dropped below the 50.00 USD mark in the short term. Some traders used the downward movement for short covering like we already mentioned in yesterday's early morning news as Brent reached its key support at 50.00 USD. The postive ADP's US labor market report supported futures slightly in the afternoon as this report serves as an indicator for US oil demand. The US oil inventory data as per DOE which were released on Wednesday afternoon was predominated by the strong increases in oil product stocks and the strong decreases in crude oil stockpiles and were bearish, therefore. Especially oil product futures eased again while Gasoil and Brent stayed above their Wednesday's lows they marked in the morning. Oil futures didn't continue to expand there long-term lows in late trading in spite of the bearish US oil inventory data due to short covering which was a reaction to Brent's rebound from its key support at 50.00 USD. Futures finally settled near their level at which they opened on Wednesday morning.

ICE Gasoil contract for January delivery settled at 477.50 USD on Wednesday, this is 10.00 below Tuesday's settlement. With some 25,900 deals the traded volume (front month) was far below average.

The stochastic indicator at the WTI chart already crossed triggering a buying signal. Futures at ICE and NYMEX are at an oversold level favouring technical upward movements. There are still no confirming signals at the Brent and the Gasoil chart but they might be triggered in the course of the day. We consider the technical constellation as slightly bullish this morning due to the buying signals at the WTI chart. If there are no supporting buying signals at the ICE, the buying signals at the WTI chart might lose its influence and the technical constellation could overturn into a bearish constellation again. This could trigger a new test of the 50.00 USD Brent mark which has already been eyed yesterday.

U.S.

Nymex above average: Futures at ICE and NYMEX continue their countermovement they started yesterday and stay strong this morning. The traded volume at NYMEX is 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.

Forecast: Crude oil +0.7; Distillates +2.1; Gasoline +4.5 million barrels vs previous week.
DOE: Crude oil -3.1; Distillates +11.2; Gasoline +8.1 million barrels vs previous week.
API: Crude oil -4.0; Distillates +9.1; Gasoline +6.9 million barrels vs previous week.

Houston (ex-wharf indications 8-1)
380cst $287
180cst $432
MGO $641

New Orleans (ex-wharf indications 8-1)
380cst $310
180cst $369
MGO $644

Singapore (delivered indications 8-1)

WTI is gaining with +$1.18. Singapore paper is up with +$12.50 for 180cst with +$13.00 for 380cst for Jan, and for Feb 180 cst +$12.25 and 380cst with +$12.40 with MGO contracts Jan bullish with +$0.60 and in Feb with +$0.55. The cargo market is bearish with 180cst -$13.21, 380cst with -$13.28 and MGO with -$2.60.

380cst $287
180cst $299
MGO $516

Fujairah (delivered indications 8-1)

380cst $277
180cst $318
MGO $822