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Oil prices pushed higher in European trade this morning, after falling overnight, as market players awaited the outcome of a key meeting of major oil producers in Vienna later in the day.

Market fundamentals and the technical constellation were slightly bearish Wednesday morning. The Stochastic indicator had dropped below 50% at the WTI chart. Moreover, the US crude oil contract had broken below the 7-period moving average. This pointed to more tests of the downside which could have pushed WTI down to its 21-period moving average. The rise in OPEC oil output and expectations that the cartel won't cut its production successively sent oil futures down in the course of the day. Moreover, disappointing economic indicators out of China weighed on oil futures. Eventually, WTI dropped near its 21-period moving average. The support near this marker limited losses. Later in the evening oil futures surged on technical buying and on reports saying that Saudi Arabia would support an output freeze. Oil futures in London and New York pared earlier losses and so they ended the day above the levels they had traded on in the afternoon.

ICE Gasoil contract for June delivery settled at 443.75 USD on Wednesday, this was 9.75 USD below Tuesday's settlement. With some 37,100 deals, the traded volume (front month) was below average.

The technical constellation has meanwhile lost most of the bearish influence it had on Wednesday as oil prices declined Wednesday afternoon. The lines of the Stochastic indicator are no longer diverging at the WTI chart and the RSI doesn't give any clear signals either. WTI is trading in a range between the 7-period and the 21-period moving average. Usually, this is not a very stable situation. It rather leads to expect that volatility is rising. The 7- and the 21-period moving average are providing a wide trading range for all contracts today. If oil futures break above or below this range, bullish or bearish signals might be generated. Since clear technical signals are lacking, we assess the technical constellation as neutral.

U.S.

Nymex above Average: Oil futures pulled back from Wednesday's highs overnight, weighed down by the API's bearish data on US oil inventories. They have been struggling to find a direction in East Asia and in NYMEX electronic trading this morning. The traded volume at NYMEX is above average this morning. Market participants are waiting for the European financial and forex markets to open and for the release of a string of economic indicators. They are also closely eying the meetings of the OPEC and the ECB's Governing Council as well as the release of the DOE's report on US oil inventories.

Houston (ex-wharf indications 2-6)
380cst $221
180cst $323
MGO $471

New Orleans (ex-wharf indications 2-6)
380cst $231
180cst $276
MGO $452

Singapore (delivered indications 1-6)

380cst $226
180cst $231
MGO $434

Fujairah (delivered indications 1-6)

380cst $237
180cst $242
MGO $494

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $233
MGO 0.1%S: $463