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ICE Gasoil contract for April delivery settled at 365.25 USD on Wednesday, this was 15.25 USD above Tuesday's settlement. With some 69,400 deals, the traded volume (front month) was above average.

The technical selling pressure which had weighed on oil futures in the past few days notably decreased on Wednesday morning, for the bearish signals of the Stochastic indicator and the RSI had been largely priced in. Still, the technical constellation remained slightly bearish as oil futures had broken their uptrends. This favoured more tests of the downside. In the course of the morning, the Qatari oil minister said that a meeting between OPEC members and other important oil producers would take place in Doha, Katar, on April 17. Saudi Arabia, Kuwait and Qatar indicated that there might be an agreement on freezing output at January levels even if Iran doesn't join in. Traders thus avoided too large short-positions, rather tending to cover these positions. Oil futures gained ground, extending their gains in the afternoon, the more so as the DOE's data were interpreted as bullish. After the meeting of the FOMC, Fed chief Janet Yellen commented on the US central bank's monetary policy. Monetary policy in the USA will be more accommodative than investors had been expecting so far. Oil futures thus posted fresh highs in the evening, whilst the Euro/Dollar also benefited by the FOMC's decisions.

ICE Gasoil contract for April delivery settled at 365.25 USD on Wednesday, this was 15.25 USD above Tuesday's settlement. With some 69,400 deals, the traded volume (front month) was above average.

The influence of the technical selling signals had already waned on Wednesday. This morning the technical constellation turned bullish as the lines of the Stochastic indicator crossed. The indicator thus gave off buying signals at ICE and NYMEX charts. Moreover, oil futures have already broken above Wednesday's highs, generating more upward potential. Although the price increase was certainly triggered by market fundamentals, the buying signals of the Stochastic indicator make the technical constellation bullish this morning.

U.S.

Nymex above average: Oil futures extended their gains overnight, breaking above Wednesday's highs. In electronic trading this morning, prices briefly edged lower. Currently, they are regaining some traction. The traded volume at NYMEX is far 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 the economic indicators due today. Besides, they will wait for news on a possible output freeze by OPEC and non-OPEC producers.

Forecast: Crude oil +3.3; Distillates -0.8; Gasoline -2.6 million barrels vs previous week.
DOE: Crude oil +1.3; Distillates -1.1; Gasoline -0.7 million barrels vs previous week.
API: Crude oil +1.5; Distillates -0.8; Gasoline -1.2 million barrels vs previous week.

Houston (ex-wharf indications 17-3)
380cst $158
180cst $269
MGO $362

New Orleans (ex-wharf indications 17-3)
380cst $165
180cst $211
MGO $350

Singapore (delivered indications 17-3)

Brent is bearish with +$2.19 for Apr contracts. Singapore paper is up with +$13.95 for 180cst with +$14.00 for 380cst for Mar, and for Apr 180cst +$13.95 and 380cst with +$12.75 with MGO contracts Apr with +$2.30 and in May with +$2.32.The cargo market is down with 180cst -$2.14, 380cst with -$4.52 and MGO with +$0.36.

380cst $180
180cst $186
MGO $348

Fujairah (delivered indications 17-3)

380cst $171
180cst $191
MGO $418

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $168
MGO 0.1%S: $363