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WTI oil futures pushed higher this morning, one day after losing more than 4% following the release of disappointing weekly supply data from the U.S.

The situation at oil markets was bullish on Wednesday morning. The technical buying signals pointed to tests of the upside whilst the API's data on US petroleum stockpiles and the shut-down of two product pipelines in the USA supported prices fundamentally, despite the fact that analysts still consider the market situation as bearish, saying a sharp price increase would be a good opportunity for investors to take profits. Oil prices already tended to the upside in the first half of the day, breaching short-term resistances. Until the afternoon, oil futures consolidated on a high level, though, as investors were waiting for the release of the DOE's report on US oil inventories (4.30 p.m.). At first, the bullish data pushed oil prices considerably higher. In the early evening, however, market players took profits from the price rally. Moreover, pipeline operator Colonial Pipeline announced that the product pipelines which had been shut down Monday night would be restarted. Analysts were taken by surprise how low this news sent oil futures. This was said to have been caused by technical profit taking following Brent's test of the 50 USD-marker. Against the backdrop of this sharp downward correction, oil futures at ICE and NYMEX ended the day in the red near fresh lows.

ICE Gasoil contract for October delivery settled at 473.25 USD on Wednesday, this is +13.50 USD above Tuesday's settlement. With some 56,400 deals the traded volume (front month) was on average.

The buying signals the Stochastic indicator had given at the ICE charts on Wednesday morning were confirmed by a buying signal at the WTI chart in the course of the day, favouring upward moves. When oil futures plummeted Wednesday evening, the bullish signals have been completely spent, though. Oil futures thus remain within a sideways consolidation, with fresh cues lacking this morning. Since there are no clear signals or trends, the technical constellation is neutral.

U.S.

Nymex above average : After Wednesday evening's price drop, oil futures failed to recover in Asian and electronic trading this morning, staying range bound near Wednesday's lows. The traded volume at NYMEX is above average this morning. Investors are now waiting for the European financial and forex markets to open and for the economic indicators which are on the agenda today.

Forecast: Crude oil -0.1; Distillates +1.4; Gasoline +1.0 million barrels vs previous week.
DOE: Crude oil -$1.9; Distillates -2.1; Gasoline +1.4 million barrels vs previous week.
API: Crude oil -$3.7; Distillates ±0.0; Gasoline +2.2 million barrels vs previous week.

Houston (ex-wharf indications 24-9)
380cst $225
180cst $270
MGO $477

New Orleans (ex-wharf indications 24-9)
380cst $237
180cst $289
MGO $463

Singapore (delivered indications 23-9)

Brent is bouncing now after the recent losses +$1.31. Singapore paper gaining with +$11.00 for 180cst with +$10.25 for 380cst for Oct, and for Nov 180 cst +$10.45 and 380cst with +$10.25 with MGO contracts Oct Gaining with +$1.97 and in Nov with +$1.89. The cargo market is embracing the previous sell off yet to react to the bounce with 180cst -$1.16, 380cst with -$0.31 and MGO with +$0.20.

380cst $230
180cst $240
MGO $440

Fujairah (delivered indications 23-9)

380cst $233
180cst $253
MGO $519

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $219
MGO 0.1%S: $432