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Crude oil futures were higher on Wednesday, as appetite for riskier assets improved amid hopes for more stimulus measures from the Chinese government.

Oil prices hesitated Tuesday morning, market participants waiting for the return of U.S. traders after Monday's holiday. After the release of encouraging indicators on German and euro zone economies those investors already active in the market covered some short positions and helped prices up at midday. After the opening of the session in New York, when U.S. traders tracked Monday's late price decrease, oil lost almost all the ground gained before. In a volatile and technical market prices recovered later in the wake of a rise in stock markets and on news that Mexico is ready to collaborate with OPEC in order to reduce oil supply. Thus prices settled much higher in London and New York.

ICE Gasoil contract for September delivery settled at 481.00 USD on Tuesday, this is 10.75 USD above Monday's settlement. With some 49,000 deals the traded volume (front month) was little below average.

Neither the RSI nor the Stochastic triggered any fresh signals this morning and are thus seen neutral. Gasoil, Brent and WTI meanwhile have breached their seven day moving average, opening more upside to prices. The Brent has a key resistance at 50.00 USD. Should this resistance be breached a wave of technically driven buying orders would be triggered. The Stochastic indicator could also trigger a buying signal should its two lines cross in the course of the day. We consider the technical constellation as neutral this morning. Should the Brent breach its key resistance and the lines of the Stochastic cross, the situation could become bullish, though.

U.S.

Nymex above average: Oil prices rose in Asia this morning, trying to breach yesterday's highs, but are retreating in Globex electronic trading as the Brent failed to breach its 50 dollar key resistance. As the Gasoil front month expires tomorrow, market volatility is expected to increase today. The traded NYMEX volume is little above average at this time of day. Investors are waiting for the European financial and forex markets to open, for the monthly EIA energy report to be released after office hours and for the API's data on U.S. oil inventories while there is only one single U.S. indicator on the agenda today.

Houston (ex-wharf indications 9-9)
380cst $250
180cst $346
MGO $510

New Orleans (ex-wharf indications 9-9)
380cst $264
180cst $316
MGO $486

Singapore (delivered indications 9-9)

WTI is bullish with +$1.71. Singapore paper is up with +$3.75. for 180cst with +$5.00 for 380cst for Sep, and for Oct 180 cst +$4.50 and 380cst with +$4.25 with MGO contracts Sep gaining with +$1.80 and in Oct with +$1.72. The cargo market is bearish with 180cst -$8.23, 380cst with -$8.90 and MGO with -$1.09.

380cst $241
180cst $252
MGO $451

Fujairah (delivered indications 8-9)

380cst $243
180cst $273
MGO $599

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $233
MGO 0.1%S: $443