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European stocks opened lower on Wednesday, as oil prices declined after an oil worker strike in Kuwait ended and as investors awaited a speech by European Central Bank President Mario Draghi due later in the day.

The technical constellation remained slightly bearish Tuesday morning but its influence kept waning. Investors rather focused on the bullish market fundamentals. A strike of oil workers in Kuwait and a "Force Majeure" over Eni's crude oil deliveries from Nigeria cut oversupplies to near zero all at once, sending oil prices higher. This constellation prevented the price slump that might have occurred due to the fact that the producer meeting in Doha didn't bring about any deal over an output freeze. That is why oil futures initially but slowly rose on Tuesday. Only when oil futures broke above the 7-period moving average in late-afternoon trade did the price increase accelerate. The NYMEX gasoline contract gained more ground than the other futures as it was bolstered by news on refinery outages in the USA. Tuesday night, the API released its weekly report on US oil inventories but the data didn't have any larger impact on oil prices. Oil futures thus ended the day with considerable gains. This morning oil futures have lost ground already as the strike of oil workers in Kuwait has ended and as Eni has been able to resume its oil exports from Nigeria.

ICE Gasoil contract for May delivery settled at 378.50 USD on Tuesday, this was 8.25 USD above Monday's settlement. With some 73,500 deals, the traded volume (front month) was far above average.

The lines of the Stochastic indicator have meanwhile crossed at the ICE charts, giving off a buying signal. However, the 7-period moving average is limiting upward potential at the Brent and the Gasoil chart. At the WTI chart the lines of the indicator have crossed as well but the buying signal has already waned. The RSI has dropped below 70% at the US crude oil chart, giving off a bearish signal. This might also happen at the Brent chart. So far, the RSI hasn't fallen clearly enough below 70% at the Brent chart, though. The technical indicators don't provide clear cues this morning. The Stochastic indicator might turn bullish again at the WTI chart in the course of the day whereas the RSI might give more bearish cues at the Brent and the Gasoil chart. The 7-period moving average is renewedly limiting the upside for oil futures traded on the ICE and NYMEX trading platforms. We thus assess the technical constellation as neutral. In the course of the day both the bullish and the bearish factors might gain more influence.

U.S.

Nymex above average: Since the strike of Kuwaiti oil workers has ended. has resumed its oil exports in Nigeria and the API's data on US oil inventories are slightly bearish, the bearish factors are currently predominating, favouring a decline in oil prices. The traded volume at NYMEX is far above average this morning. Investors are waiting for the European financial and forex markets to open as well as for the few economic indicators due today. This evening at 4.30 p.m., the DOE will release its report on US oil inventories.

Houston (ex-wharf indications 20-4)
380cst $167
180cst $287
MGO $383

New Orleans (ex-wharf indications 20-4)
380cst $180
180cst $222
MGO $375

Singapore (delivered indications 20-4)

Brent is losing sharply with +$1.92 for June contracts. Singapore paper is following with +$10.75 for 180cst with +$10.25 for 380cst for May, and for June 180cst +$10.75 and 380cst with +$9.50 with MGO contracts May with +$2.29 and in June with +$2.22. The cargo market is yet to really embrace the drops with 180cst -$12.39, 380cst with -$12.19 and MGO with -$2.04

380cst $191
180cst $197
MGO $355

Fujairah (delivered indications 19-4)

380cst $188
180cst $193
MGO $427

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $178
MGO 0.1%S: $3583