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WTI oil futures rose for the second straight session this morning, as concerns over a supply glut in the U.S. eased after data showed that crude inventories fell for the third consecutive week last week.

Oil futures at ICE and NYMEX recovered on Wednesday morning from their strong losses on Tuesday due to the bullish US oil inventory data as per API. Short covering was encouraged as the technical constellation was to be interpreted as neutral again after its selling signals on Wednesday morning. The Japanese GDP increased stronger than expected and supported oil futures. No considerable countermovement took place when oil prices decreased as analysts were of the opinion that there are many signs at the market which speak for a trend change. This fact prevented US dollar investments in in dollar negotiated oil futures. Gasoil was limited by its resistance at 595.00 USD and Brent by its 65.00 USD mark. The oil market stayed rather calm in the afternoon and prices consolidated in a rather narrow range while market players were waiting for the US oil inventory report as per DOE. The report was to be interpreted as bullish but oil futures' decreased in an initial reaction. But they changed direction near their first supports testing their strong resistances again in late trading. The FOMC minutes also supported oil futures as bankers indicated that an US interest rate hike in June is rather improbable. Nevertheless, oil futures weren't able to breach their resistances at 65.00 USD Brent and 595.00 USD Gasoil on Wednesday evening.

ICE Gasoil contract for May delivery settled at 592.75 USD on Wednesday, this is -0.50 USD below Tuesday's settlement. With some 58,000 deals the traded volume (front month) was about on average.

The stochastic indicator's lines at the Brent and the WTI chart already converge. Therefore, the bearish influence has been completely absorbed. Even the lines of the stochastic indicator at the Gasoil chart don't diverge anymore. This is why all these indicators are to be interpreted as neutral. The RSI has no direction providing influence this morning while the 7 day moving average and the 21 day moving average at the Brent chart sustainably crossed generating a selling signal. If this selling signal is confirmed at the WTI chart, technical selling pressure could increase again. First downward trends are to be seen at the Brent and the WTI chart which also include upward margins while Gasoil keeps rather consolidating. Therefore, we consider the technical constellation as neutral this morning.

U.S.

Nymex on average: Oil futures started strong this morning due to the bullish US oil inventory report and the breach of yesterday's resistance lines. 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 for economic indicators that are on the agenda today.

Forecast: Crude oil -1.1; Distillates +0.1; Gasoline +0.3 million barrels vs previous week.
DOE: Crude oil -2.7; Distillates -0.5; Gasoline -2.8 million barrels vs previous week.
API: Crude oil -5.2; Distillates +0.2; Gasoline -1.2 million barrels vs previous week.

Houston (ex-wharf indications 21-5)
380cst $344
180cst $484
MGO $656

New Orleans (ex-wharf indications 21-5)
380cst $352
180cst $407
MGO $609

Singapore (delivered indications 21-5)

WTI is gaining with +$0.36. Singapore paper is gaining with +$6.00 for 180cst with +$4.84 for 380cst for Jun, and for Jul 180 cst +$5.25 and 380cst with +$4.85 with MGO contracts Jun gaining with +$0.14 and in Jul with +$0.15. The cargo market is bearish with 180cst -$3.16, 380cst with -$2.77 and MGO with -$0.74.

380cst $356
180cst $376
MGO $576

Fujairah (delivered indications 21-5)

380cst $386
180cst $395
MGO $734

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $338
MGO 0.1%S: $582