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WTI oil futures held near a five-month peak hit in the previous session this morning, as concerns over a supply glut eased after the first drawdown in U.S. crude inventories since January.

Oil futures at ICE and NYMEX increased from Wednesday morning until the afternoon due to the fundamental and technical bullish situation. They quickly breached their first resistances and futures stayed as strong as on Tuesday due to further automatically triggered buying orders. The API's figures had a supporting influence on oil futures as they announced a decrease in US crude oil stocks on Tuesday evening. Libyan production losses, Saudi Arabia's price increase and the increase in the premium risk due to the Yemen conflict encouraged upward tests while market players were waiting for the official US oil inventory data as per DOE. The DOE announced even stronger decreases in US crude oil stocks than the API did. Therefore, oil futures - especially WTI - considerably increased. The bearish factors of the report limited the increase and caused a change in direction in late trading.

ICE Gasoil contract for May delivery settled at € 553.72 on Wednesday, this is +€ 2.23 above Tuesday's settlement. With some 51,500 deals the traded volume (front month) was about on average.

The stochastic indicator was to be interpreted as neutral yesterday but finally changed direction and is to be interpreted as bearish this morning due to the crossing of its lines at ICE and NYMEX. The RSI stays above the 70 line and will trigger a selling signal if it breaches this line sustainably. Oil futures already breached their Tuesday's lows in the early morning. Therefore we consider the technical constellation already as slightly bearish this morning due to these breaches in combination with the stochastic indicator's selling signals. If the RSI confirms the stochastic indicator's selling signals by breaching the 70 line, the constellation would be to be interpreted as clearly bearish.

U.S.

Nymex above avarage: Oil futures already breached their Tuesday's lows while short covering currently limits the downward movement. Therefore, oil futures slightly redress again due to the weak dollar. 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 for economic indicators that are on the agenda today.

Forecast: Crude oil +1.8; Distillates -0.2; Gasoline +0.5 million barrels vs previous week.
DOE: Crude oil -3.9; Distillates +1.5; Gasoline +0.4 million barrels vs previous week.
API: Crude oil -1.5 million barrels vs previous week.

Houston (ex-wharf indications 7-5)
380cst $353
180cst $467
MGO $663

New Orleans (ex-wharf indications 7-5)
380cst $365
180cst $419
MGO $652

Singapore (delivered indications 7-5)

WTI is losing with -$0.58. Singapore paper is bearish with -$3.00 for 180cst with -$3.50 for 380cst for May, and for Jun 180 cst -$3.00 and 380cst with -$3.25 with MGO contracts may losing with ±$0.00 and in Jun with -$0.01. The cargo market is bullish with 180cst +$15.71, 380cst with +$14.98 and MGO with +$2.54.

380cst $386
180cst $401
MGO $593

Fujairah (delivered indications 7-5)

380cst $405
180cst $420
MGO $751

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $363
MGO 0.1%S: $598