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Oil prices were lower in European trade this morning, pulling back slightly from the prior session's five-month highs after data showed that U.S. oil supplies rose to an all-time high last week, underlining concerns over a supply glut.

Oil futures at ICE and NYMEX started on a strong foot in European trading on Wednesday, rising above several resistance lines, supported by the API's surprisingly bullish report released Tuesday night. The technical constellation was rather neutral and there were no fresh signals from this side. Several bullish news released in the course of the morning lent additional support. The delay in the recommissioning of an oil field owned by Kuwait and Saudi Arabia, the world bank's upward revision by 4 USD for a barrel of crude and the problems Libya was facing when trying to sell its first cargo of crude to Malta. Yet oil prices hesitated during the European electronic session, consolidating their gains as market participants were anticipating the release of the DoE's official data on U.S. oil reserves. When the report was released at 4.30 p.m. oil collapsed, hitting fresh intraday lows on the unexpected build in crude stockpiles the DoE had announced. The direction was reversed in late trading after the Fed released the results of the latest FOMC meeting, prices compensating all of their earlier losses and hitting fresh day's highs in London and New York.

ICE Gasoil contract for May delivery settled at 402.50 USD on Wednesday, this was 5.50 USD above Tuesday's settlement. With some 49,800 deals, the traded volume (front month) was below average.

Oil prices hit fresh year highs on Wednesday thanks to their strong rebound at the end of the day. If the Stochastic's two lines have meanwhile crossed, triggering a bullish signal, the indicator is well at the overbought level which diminishes its influence. Apart from that the Stochastic is still diverging from the development of the prices at ICE and NYMEX in a market at dwindling volume. As for the RSI, the indicator is also showing a divergence to the price development (its peaks do not match the peaks in the price chart). Even if the Stochastic has produced a buying signal, opening more upside to prices, the technical constellation cannot be considered clearly bullish. The dwindling volume while prices are in uptrend might be a sign for an overbought market, the more as RSI and Stochastic are at the overbought level. The Stochastic's buying signal could therefore easily become a bearish signal. Because of the existing divergence of both indicators we rather judge the constellation as neutral today.

U.S.

Nymex above average: Oil futures declined in East Asia this morning on a bit of profit taking, trading in a rather narrow range in Globex electronic trade in a thin market lacking direction The traded volume at NYMEX is about on average this morning. Market participants are waiting for the European financial and forex markets to open as well as for a series of economic indicators due today.

Data on US oil inventories as per API: According to the API, US crude oil inventories decreased in the week ending April 22. Product stockpiles are to have declined, too.

Houston (ex-wharf indications 28-4)
380cst $187
180cst $307
MGO $414

New Orleans (ex-wharf indications 28-4)
380cst $205
180cst $245
MGO $413

Singapore (delivered indications 28-4)

Brent is gaining momentum +$0.38. Singapore paper is reflecting the same with +$1.75 for 180cst with +$3.00 for 380cst for May, and for June 180cst +$1.65 and 380cst with +$3.05 with MGO contracts May with +$0.52 and in June with +$0.46. The cargo market is following now with 180cst +$12.83, 380cst with +$11.76 and MGO with +$2.03.

380cst $212
180cst $218
MGO $396

Fujairah (delivered indications 28-4)

380cst $217
180cst $221
MGO $444

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $203
MGO 0.1%S: $403