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WTI oil futures rose to the highest level of the year on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a slower pace than expected last week.

Oil futures consolidated on Tuesday morning after the strong price increase of the last few days. Britain market players were expected to return to the oil market after they didn't participate in trading on Monday due to the May Bank Holiday. The slightly bearish technical and fundamental constellation wasn't able to predominate the market in the course of the day. Oil futures tested their Monday's highs due to the strike in Libya which causes production and export losses and due to the expectations of a slight decrease in stocks in Cushing. The price increase was technically limited at this level. The breach of some resistances neutralized the bearish technical signals triggering further technical buying orders. The news concerning Saudi Arabia's price increase for crude oil deliveries in June was interpreted as a sign for a strong crude oil demand pushing oil futures upwards. Oil futures participated in a price rally in the afternoon reaching fresh 6-month-highs. Some traders took profit from these high levels but oil futures increased again during the night due to the US oil inventory report as per API, due to a rocket attack in Saudi Arabia and due to the weak dollar.

ICE Gasoil contract for May delivery settled at 618.50 USD on Tuesday, this is +14.50 USD above Monday's settlement. With some 43,200 deals the traded volume (front month) was below average.

The stochastic indicator at the Brent and WTI chart was still bearish yesterday but it is to be interpreted as neutral again this morning. Its selling signals have already been neutralized yesterday afternoon and the RSI currently doesn't trigger any signal either. There are no fresh important signals this morning. Therefore, the upward trends stay intact. Further upside was triggered by the breach of Monday's highs. This is why we consider the technical constellation as slightly bullish this morning. But the stochastic indicator might trigger buying or even selling signals in the course of the day. The signal might have an important influence on the development of oil prices.

U.S.

Nymex on avarage: Oil futures increase this morning due to the decrease in US crude oil stocks and the increase in the risk premium concerning Saudi Arabia and Yemen. 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, 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.

Houston (ex-wharf indications 6-5)
380cst $348
180cst $480
MGO $656

New Orleans (ex-wharf indications 6-5)
380cst $359
180cst $415
MGO $651

Singapore (delivered indications 6-5)

WTI is gaining with +$1.98. Singapore paper is bullish with +$15.50 for 180cst with +$15.95 for 380cst for May, and for Jun 180 cst +$15.50 and 380cst with +$15.55 with MGO contracts may gaining with +$2.45 and in Jun with +$2.35. The cargo market is bullish with 180cst +$2.87, 380cst with +$2.26 and MGO with -$0.29.

380cst $377
180cst $397
MGO $596

Fujairah (delivered indications 6-5)

380cst $383
180cst $397
MGO $733

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $363
MGO 0.1%S: $608