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WTI oil futures inched lower this morning, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a faster pace than expected last week.

After oil futures marked hefty losses at the beginning of this week, oil futures at ICE and NYMEX on Wednesday morning profited from the fact that investors took profits from their short-positions. However, disappointing economic indicators, the expectation of a persisting oil glut and the outlook of an increase in US crude oil inventories weighed on prices. Moreover, the technical constellation was still slightly bearish even though selling pressure had decreased compared to Tuesday. The diverging factors were rather balanced and so oil futures didn't show any larger moves - neither to the upside, nor to the downside. Market players were bracing for crucial cues that kept lacking throughout the day. New cues only were provided when the API released its data on US oil inventories at 10.30 p.m., which showed strong builds in US crude oil stockpiles and a massive draw in product inventories. After oil futures sharply declined Wednesday night, they saw an upward correction this morning. That is why oil futures are currently trading near Wednesday morning's levels.

ICE Gasoil contract for November delivery settled at 453.75 USD on Wednesday, this is 2.25 USD below Tuesday's settlement. With some 72,800 deals the traded volume (front month) was far above average.

The selling signals the Stochastic indicator and the RSI had provided at the beginning of this week have meanwhile been spent. Both indicators can be considered completely neutral this morning. The Stochastic indicator has entered oversold territory. However, there hasn't been any bullish signal yet which could trigger a technical upward correction. At the Gasoil-chart the 7-period and the 21-period moving average might give off a bearish signal if the lines sustainably cross. As fresh cues are still lacking and as oil futures are still moving within Wednesday's trading range, the technical constellation should be assessed as neutral.

U.S.

Nymex above average : Oil futures this morning pared the losses they had marked on Wednesday after the release of the API's data on US oil inventories. They are bolstered by short-covering, the more so as the API's data contained both bullish and bearish cues. The traded volume at NYMEX is above average this morning. Investors are now waiting for the European financial and forex markets to open as well as for the release of a few economic indicators. Moreover, they are eying the release of the DOE's report at 5.00 p.m.

Forecast: Crude oil +2.6; Distillates -0.6; Gasoline -0.4 million barrels vs previous week.

API: Crude oil +9.3; Distillates -2.7; Gasoline -5.0 million barrels vs previous week.

Houston (ex-wharf indications 15-10)
380cst $230
180cst $295
MGO $489

New Orleans (ex-wharf indications 15-10)
380cst $244
180cst $297
MGO $484

Singapore (delivered indications 15-10)

Brent is losing with -$0.09. Singapore paper losing with -$3.00 for 180cst with -$3.25 for 380cst for Oct, and for Nov 180 cst -$2.45 and 380cst with -$1.25 with MGO contracts Oct down with -$0.07 and in Nov with -$0.07. The cargo market is losing with 180cst -$1.97, 380cst with -$1.95 and MGO with -$1.21.

380cst $234
180cst $250
MGO $440

Fujairah (delivered indications 15-10)

380cst $244
180cst $271
MGO $608

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $228
MGO 0.1%S: $423