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As U.S. oil inventories reach all-time highs, cargoes of crude are increasingly flowing towards Europe, where higher prices and lower shipping costs have made the region an attractive hunting ground for those selling light sweet oil.

The overall constellation remained neutral for oil markets Thursday morning. In terms of market fundamentals, speculations over a possible OPEC output freeze fostered oil futures, as did the decline in US oil production. However, massive builds in US crude oil stockpiles and the persisting oversupplies prevented sharper price increases. Safe for a selling signal at the NYMEX gasoline chart, the technical constellation remained neutral as well. Decisive technical cues were lacking at the Brent and the WTI chart. Both crude oil contracts are still trading within a short-term uptrend between the 7-period-moving average and the upper Bollinger Band. Thursday afternoon Nigeria's oil minister announced that OPEC members and Russia would meet in Moscow on March 20. He cautioned that there would be a "dramatic price movement" when the parties met. Besides, the euro/dollar Thursday profited from positive data out of the Eurozone and rather disappointing indicators out of the USA. This made dollar-denominated oil cheaper for investors in the Eurozone. Moreover, oil production in Texas is to have increased in January compared to year-ago levels. This was the first increase since the beginning of the price slump. The bullish factors eventually took the upper hand on Thursday. Oil futures ended the day with some gains, although the rise wasn't as sharp as in the past few days.

ICE Gasoil contract for March delivery settled at 330.50 USD on Thursday, this was 1.00 USD below Wednesday's settlement. With some 41,400 deals, the traded volume (front month) was below average.

The bearish signal the Stochastic indicator gave off on Thursday at the NYMEX Gasoline chart wasn't confirmed at the other ICE and NYMEX charts. Although the lines of the Stochastic indicator converged at the WTI, the Brent and the Gasoil chart, they didn't cross which is why the indicator failed to give further selling signals. The RSI has meanwhile dropped below 70% at the WTI chart, giving a selling signal that might be confirmed at the Brent chart. The supports limiting the uptrends are still intact, preventing more downward potential. That is why the weak selling signal the RSI gave off at the WTI chart is not enough for a significant change in the technical constellation. If WTI doesn't break above Thursday's high, a Bearish Spinning Top would be generated. Overall, we assess the technical constellation as neutral as the Stochastic indicator doesn't provide any fresh cues and the uptrend between 7-period moving average and upper Bollinger Band is still intact.

U.S.

Nymex above average: After Wednesday evening's price rally oil futures tend to the downside in a rather narrow range in early electronic trading this morning. The traded volume at NYMEX is above average this morning. Market players are now waiting for the European financial and forex markets to open as well as for the release of some economic indicators.

Houston (ex-wharf indications 4-3)
380cst $142
180cst $287
MGO $339

New Orleans (ex-wharf indications 4-3)
380cst $150
180cst $194
MGO $332

Singapore (delivered indications 4-3)

Brent is bullish with +$0.34 for Apr contracts. Singapore paper is up with +$3.75 for 180cst with +$4.75 for 380cst for Mar, and for Apr 180cst +$3.20 and 380cst with +$3.20 with MGO contracts Mar with +$0.59 and in Apr with +$0.60 .The cargo market is down with 180cst -$5.64, 380cst with -$2.96 and MGO down with +$0.12.

380cst $155
180cst $161
MGO $305

Fujairah(delivered indications 4-3)

380cst $154
180cst $174
MGO $418

ARA(Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $152
MGO 0.1%S: $318