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WTI oil futures edged lower this morning, amid ongoing concerns over a glut in U.S. supplies.

Oil futures at ICE and NYMEX orientated downwards on Wednesday morning due to the API's US oil inventory report which was released on Tuesday night and due to the reopening of the Libyan oil field. WTI dropped below its key support at 48.80 USD in the short term. But this support can still be considered as strong as WTI's drop only took few moments. US oil products supported oil prices as they were supported by the strikes at US refineries and the cold weather. Oil futures eyed their resistances in the course of the afternoon due to the Saudi oil minister's comments that there are signs for an increasing demand and due to the better than expected Chinese economic indicators. The US oil inventory data as per DOE which was released on Wednesday afternoon is to be interpreted as bullish while especially US product stocks had a supporting influence. Therefore, oil futures considerably increased at the oil market breaching several resistances while the stochastic indicator at ICE and NYMEX generated some buying signals. Brent surpassed the 60.00 USD mark and Gasoil was pushed upwards as well. But Gasoil wasn't able to reach its 600.00 USD mark. Futures finally settled stronger on Wednesday evening after their late increase. Gasoil even marked 597.75 which is its highest level since the beginning of December.

ICE Gasoil contract for March delivery settled at 579.75 USD on Wednesday, this is +0.50 USD above Tuesday's settlement. With some 32,600 deals the traded volume (front month) was below average.

The stochastic indicator's lines at ICE and NYMEX crossed triggering fresh buying signals while the RSI stays at the neutral level without any change to generate important signals. We consider the technical constellation as neutral to bullish this morning due to the stochastic indicator's fresh buying signals. The 600.00 USD mark at the Gasoil chart is expected to become a psychological key resistance while last night's highs at the Brent and the WTI chart are expected to limit upward potential today. If theses marks are breached technical buying pressure would increase again and we would have to consider the technical constellation as completely bullish.

U.S.

Nymex above average: Oil futures at ICE and NYMEX returned from yesterday's late day highs in the early morning. But the rather bullish technical constellation still favours upward tests. The traded volume at NYMEX is above average at this time of the day. Investors are waiting for the European financial and the forex markets to open, for news concerning the strikes at US oil refineries and the economic indicators that are on the agenda today.

Forecast: Crude oil +3.8; Distillates -3.3; Gasoline -1.1 million barrels vs previous week.
DOE: Crude oil +8.4; Distillates -2.7; Gasoline -3.1 million barrels vs previous week.
API: Crude oil +8.9; Distillates -2.4; Gasoline -1.6 million barrels vs previous week.

Houston (ex-wharf indications 26-2)
380cst $335
180cst $417
MGO $688

New Orleans (ex-wharf indications 26-2)
380cst $340
180cst $394
MGO $688

Singapore (delivered indications 26-2)

WTI is gaining with +$2.59. Singapore paper is up with +$18.00 for 180cst with +$15.25 for 380cst for Mar, and for Apr 180 cst +$18.15 and 380cst with +$18.10 with MGO contracts Mar bullish with +$2.91 and in Apr with +$2.85. The cargo market is bullish with 180cst +$0.49, 380cst bearish with -$0.74 and MGO bullish with +$0.12.

380cst $354
180cst $375
MGO $561

Fujairah (delivered indications 26-2)

380cst $355
180cst $373
MGO $756

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $323
MGO 0.1%S: $583