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Oil prices fell this morning after U.S. inventory data showing stockpiles at another record high last week.

Market fundamentals as well as the technical constellation were bearish on Wednesday morning. The API's report on US oil inventories (released Tuesday evening) weighed on oil prices, an accord between the members of the OPEC on freezing or cutting output has become highly unlikely and the technical constellation provided more downside. In the course of the day oil futures in London and New York slightly retreated. However, investors rather stayed on the sidelines until the release of the DOE's data on US oil stockpiles. The DOE's report didn't come in particularly bullish but it didn't confirm the API's bearish data either. After the first brief price increase following the release, oil futures renewedly surged later on Wednesday evening. The figures of the DOE failed to push oil futures further down which was why traders increasingly covered their short-positions. Problems during the embarkment of crude oil in the North Sea added to upward momentum for the Brent contract. Eventually, oil futures ended the day with fresh highs.

ICE Gasoil contract for March delivery settled at 302.25 USD on Wednesday, this was 0.25 USD above Tuesday's settlement. With some 58,300 deals, the traded volume (front month) was on average.

The lines of the Stochastic indicator have crossed at the Brent chart, generating a buying signal. However, this signal might be skewed to the upside by technical problems with embarkments in the North Sea and by short-coverings. That is why technical analysts are still waiting for confirming cues at the Gasoil and the WTI chart. The technical selling pressure provided by the Stochastic indicator has abated even though the indicator is still having a slightly bearish effect at the WTI chart. The lines of the 7-period moving average and the 21-period moving average are limiting the upside, serving as key-resistances. We thus assess the technical constellation as neutral.

U.S.

Nymex above average: In early electronic trading this morning oil futures were bolstered by problems during embarkment in the North Sea and the DOE's data on US oil inventories. However, they have just pulled back from their highs breaking below short-term supports. The traded volume at NYMEX is far above average this morning. Investors are now waiting for the European financial and forex markets to open as well as for the release of some economic indicators.

Forecast: Crude oil +2.4; Distillates -0.7; Gasoline -0.3 million barrels vs previous week.
DOE: Crude oil +3.5; Distillates -1.7; Gasoline -2.2 million barrels vs previous week.
API: Crude oil +7.1; Distillates -0.3; Gasoline +0.6 million barrels vs previous week.

Houston (ex-wharf indications 25-2)
380cst $139
180cst $222
MGO $396

New Orleans (ex-wharf indications 25-2)
380cst $143
180cst $188
MGO $314

Singapore (delivered indications 25-2)

Brent is gaining with +$0.73 for Apr contracts. Singapore paper is up with +$2.55 for 180cst with +$2.50 for 380cst for Mar, and for Apr 180cst +$2.35 and 380cst with +$2.55 with MGO contracts Mar with +$1.16 and in Apr with +$1.14 .The cargo market is reacting now to the losses on paper with 180cst -$5.27, 380cst with -$5.38 and MGO with -$1.20.

380cst $148
180cst $155
MGO $285

Fujairah (delivered indications 25-2)

380cst $152
180cst $171
MGO $417

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $143
MGO 0.1%S: $293