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Oil prices slipped this morning after U.S. government data showed that gasoline stocks and distillate inventories rose last week, although falls were checked by continuing Middle East geopolitical tensions.

Oil futures at ICE and NYMEX stayed in a rather narrow range on Wednesday morning. They were supported by the bullish US oil inventory data as per API which was released on Tuesday night. Therefore, futures tested their upward potential but short-term resistances limited it. When oil futures finally breached them, they considerably increased in London and New York as technical stop loss buying orders have been triggered. The crossing of the stochastic indicator's lines at ICE and the breach of the moving averages of Brent and Gasoil reinforced technical buying orders. Due to this technical reaction, oil futures considerably increased until midday. Oil prices stayed on their high level while traders were waiting for the US oil inventory data as per DOE which was to be released at 4.30 pm. The US oil inventory report finally was bearish. Therefore, market players quickly liquidated their long positions from the morning in late trading and consequently oil futures at ICE and NYMEX considerably dropped. WTI dropped to 59.00 USD and Brent to 62.50 USD. FOMC meeting minutes were released after FS office hours and triggered another change at the oil market. The meeting minutes indicated a first interest rate hike in the course of this year but it seems as if the interest rate hike will be realised much slower than expected as US central bankers revised down their economic growth forecasts concerning the United States. This announcement weighed on the dollar and oil futures at ICE and NYMEX consequently profited from it. Oil futures were able to compensate some of their losses again and Brent finally settled almost unchanged while Gasoil even settled slightly higher.

ICE Gasoil contract for July delivery settled at 585.50 USD on Wednesday, this is +7.75 USD above Tuesday's settlement. With some 79,100 deals the traded volume (front month) was above average.

The stochastic indicator's lines at the Gasoil chart crossed in the meantime but no confirming signal has been triggered so far. The stochastic indicator at the Brent chart also indicates a bullish signal but its lines didn't cross sustainably enough yet,. The lines of the 21 day moving average and of the 7 day moving average serve again as key resistances at the ICE today. If oil futures breach these resistances, if the moving averages cross or if the stochastic indicator at the Brent chart confirms Gasoil's buying signal a very bullish technical constellation could be triggered. As long as these signals aren't caused, we consider the technical constellation as neutral this morning.

U.S.

Nymex on average: Market players act rather cautious again after oil futures moved up and down yesterday. 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, while there are only US economic indicators on the agenda this afternoon.

Forecast: Crude oil -1.3; Distillates +1.2; Gasoline -0.2 million barrels vs previous week.
DOE: Crude oil -2.7; Distillates +0.1; Gasoline +0.5 million barrels vs previous week.
API: Crude oil -2.9; Distillates +1.6; Gasoline -2.9 million barrels vs previous week.

Houston (ex-wharf indications 18-6)
380cst $339
180cst $459
MGO $627

New Orleans (ex-wharf indications 18-6)
380cst $352
180cst $409
MGO $610

Singapore (delivered indications 18-6)

WTI is gaining with +$0.32. Singapore paper is up with +$2.00 for 180cst down with +$2.75 for 380cst for Jul, and for Aug 180 cst +$2.50 and 380cst with +$2.90 with MGO contracts Jun gaining with +$0.58 and in Jul with +$0.59. The cargo market is bearish with 180cst +$0.64, 380cst with -$1.06 and MGO down with +$0.61.

380cst $359
180cst $373
MGO $560

Fujairah (delivered indications 18-6)

380cst $353
180cst $374
MGO $738

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $333
MGO 0.1%S: $563