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Oil prices opened up weak this morning in Asia after record U.S. stockpiles sent it tumbling to near six year lows in the previous session, and analysts said that the outlook remained weak.

Market players at ICE and NYMEX started cautious on Wednesday morning as they were waiting for the DOE oil inventory report and for the result of the FOMC meeting. The technical constellation was slightly bullish in the morning but technical triangles which were built within the last few days and weeks at the Brent and the Gasoil chart limits margins at ICE. The US oil inventory report as per API which was released at Tuesday night weighed on oil futures as the report was bearish due to the considerable increase in US crude oil stocks. Therefore, WTI orientated downwards which also weighed on the other futures. Barclays surprisingly revised down again its price forecast for Brent from 72.00 USD to 44.00 USD. Movements entered the oil market in the afternoon after the release of the official US oil inventory report as per DOE. The bullish influence of US oil product stocks which considerably increased predominated first before prices eased due to the record figures of stocks and the increase in US crude oil stocks. Oil futures finally settled at fresh Wednesday lows in London and New York. The FOMC's statement which was released yesterday evening after FS office hours is interpreted to indicate that bankers will postpone the date of interest rate hike. Therefore, this measure isn't expected to be adopted before June.

ICE Gasoil contract for February delivery settled at 470.50 USD on Wednesday, this is 3.75 USD below Tuesday's settlement. With some 43,100 deals the traded volume (front month) was below average.

The stochastic indicator at the WTI and the Brent chart is neutral again while the indicator at the Gasoil chart triggered a first selling signal. Confirming bearish signals of the stochastic indicator at the Brent and WTI chart are still missing but could be triggered in the course of the day. Even though Gasoil's stohastic indicator already generated a selling signal, oil futures at ICE still consolidate. Therefore, we consider the technical constellation as neutral. But the situation might become bearish if confirming selling signals are triggered at the Brent and Gasoil chart.

U.S.

Nymex above average: Oil futures started without clear direction this morning after their late downward movement. The traded volume at NYMEX is about on average at this time of the day. Market players are waiting for the European financial and the forex markets to open and the economic indicators which are to be released today. Oil futures started without clear direction this morning after their late downward movement. The traded volume at NYMEX is about on average at this time of the day. Market players are waiting for the European financial and the forex markets to open and the economic indicators which are to be released today.

Forecast: Crude oil +4.3; Distillates -2.2; Gasoline +0.7 million barrels vs previous week.
Doe: Crude oil +8.9; Distillates -3.9; Gasoline -2.6 million barrels vs previous week.
API: Crude oil +12.7; Distillates -0.7; Gasoline -5.0 million barrels vs previous week.

Houston (ex-wharf indications 29-1)
380cst $352
180cst $380
MGO $582

New Orleans (ex-wharf indications 29-1)
380cst $278
180cst $352
MGO $568

Singapore (delivered indications 29-1)

WTI is losing with -$0.60. Singapore paper is up with -$2.25 for 180cst with -$2.50 for 380cst for Feb, and for Mar 180 cst -$2.50 and 380cst with -$2.55 with MGO contracts Feb bearish with -$0.55 and in Mar with -$0.51. The cargo market is bearish with 180cst +$7.95, 380cst with +$6.60 and MGO with +$0.46.

380cst $285
180cst $309
MGO $490

Fujairah (delivered indications 29-1)

380cst $295
180cst $319
MGO $828

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $245
MGO 0.1%S: $468