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Oil prices extended declines from the previous session this morning as tensions in the Middle East eased after Saudi Arabia ended an air strike campaign in Yemen, but industry leaders said the market could rebound as attention turned to rising demand.

Oil futures at ICE and NYMEX consolidated in a rather narrow range in the course of Tuesday but indicated an easing tendency. The technical constellation kept weighing on oil futures while US oil inventory forecasts prevented strong downward movements. Especially Genscape's forecast concerning stocks in Cushing, Oklahoma was to be interpreted as bullish as they counted on a very slight increase in stocks and even on a decline in stocks in the second half of the reported week. There were only some important signals providing direction. Yesterday evening, first news indicating a ceasefire in Yemen encouraged downward movements. In the late evening the news that air attacks of the international coalition will be stopped was confirmed and market players priced out the corresponding risk premium. The API released its US oil inventory data last night which were rather bearish compared to the forecasts triggering fresh selling signals. Therefore, bearish factors predominated and oil futures finally settled considerably lower in London and New York.

ICE Gasoil contract for May delivery settled at 569.75 USD on Tuesday, this is -4.25 USD below Monday's settlement. With some 38,900 deals the traded volume (front month) was below average.

The stochastic indicator stays bearish after having triggered selling signals at the beginning of this week and after dropping below its 50 line as lines keep diverging. The RSI still marks at the oversold level testing its 70 line and will become bearish if its lines cross. Even though the stochastic indicator already triggered its selling signals on Monday and the market players are still waiting for the RSI's signals, we consider the technical constellation as bearish this morning as Tuesday's lows have already been breached and further downside has been generated.

U.S.

Nymex above avarage: Oil futures keep their bearish tendency after the release of bearish API US oil inventories. Futures even breached their Tuesday's lows 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, for news concerning Yemen and for economic indicators that are on the agenda today. They are also focusing on the official US oil inventory data as per DOE which is to be released this afternoon at 4.30 pm.

Forecast: Crude oil +2.4; Distillates +0.9; Gasoline -0.7 million barrels vs previous week.
API: Crude oil +5.5; Distillates +1.7; Gasoline +1.1 million barrels vs previous week.

Houston (ex-wharf indications 22-4)
380cst $330
180cst $483
MGO $631

New Orleans (ex-wharf indications 22-4)
380cst $342
180cst $391
MGO $647

Singapore (delivered indications 22-4)

WTI is losing with -$1.21. Singapore paper is bearish with -$5.75 for 180cst with -$5.50 for 380cst for May, and for Jun 180 cst -$5.75 and 380cst with -$5.60 with MGO contracts may losing with -$1.15 and in Jun with -$1.18. The cargo market is bearish with 180cst -$2.38, 380cst with -$2.05 and MGO with -$0.34.

380cst $348
180cst $363
MGO $560

Fujairah (delivered indications 22-4)

380cst $352
180cst $371
MGO $731

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $320
MGO 0.1%S: $548