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Technical indicators: bearish

Oil futures have consolidated before noon , ICE Brent and NYMEX Crude Oil have just breached first supports on a stronger dollar. Investors look ahead to the results of the BCE 's meeting to be published this afternoon.

After a rather quiet electronic session when traders anticipated the release of US indicators and petroleum inventories and a strong euro prevented oil futures from following their bearish technical constellation, oil prices slumped yesterday after both the ISM non-manufacturing index and US factory orders came in below expectations. The bearish DOE data reinforced the bearish momentum and oil prices breached various support lines on their way down, triggering even more selling orders.

ICE gasoil for August delivery settled at 954.25 dollars on Wednesday. This was 13.25 dollars below Tuesday's settlement. With some 63,900 contracts the traded volume was slightly above average.

The stochastic indicator at ICE is slightly bearish, while it rather is to be seen as neutral for the WTI Crude. Chart analysts thus consider the situation as bearish, even if NYMEX Crude Oil seems oversold already. According to analysts, tests of medium term supports are possible regarding ICE-futures, market participants might be cautious, however, waiting for the DOE data and US employment data to be published in the afternoon. Should these prove to be bearish and should ICE-futures breach their key supports, there will be new potential downward, rendering possible a correction regarding WTI crude down to the area of 90 dollars, analysts add. The first support for the WTI crude is seen at 92.80 dollars, its first resistance at 94.45 dollars. The Brent's first resistance is seen at 117.00 dollars, its first support is at 115.75 dollars.

U.S.

Nymex Access losing: Oil futures keep losing in Asian trading and Globex electronic exchange this morning, extending Wednesday's losses as economic worries intensified after the latest figures showed US service industries expanded in July at the slowest pace since February 2010. The traded volume is on average.

APIs: crude oil -3.3; distillates +1.4; gasoline +2.5 million barrels vs previous week. Refinery utilization +0.9%

DOEs: crude oil +1.0; distillates +0.4; gasoline +1.7 million barrels vs previous week. Refinery utilization +1.0%

Forecasts: Crude oil +1.0; distillates +1.4; gasoline -0.4 million barrels vs previous week

Houston (ex-wharf indications 3-8)

380 cst $673
180 cst $703
MDO $994

New Orleans (ex wharf indications 3-8)

380 cst $676
180 cst $607
MDO $998

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is continuing in its bearishness, dropping with WTI -$2.54. Singapore paper is mirroring crude, losing with -$11.85 for 180cst and -$11.05 for 380cst for Aug, and for Sep 180 cst -$11.20 and -$11.10 for 180cst with MGO Aug contracts at -$1.87 and for Sep at -$1.96. The cargo market is cautiously losing with 180cst -$4.93, 380cst -$4.76 and MGO -$0.18.

The Singapore fundamentals are still looking firm as market structure is still backwardated by $3.50/mt. The delivered premiums inched up slightly to $6.00 above cargo prices yesterday. Bunker fuel swaps following general trend in the market lost app. $12.50/mt along the curve both for Rotterdam and Singapore papers. Losses were slightly more pronounced at the front of the forward curve. This morning both markets continue trading higher.

High premiums for prompt deliveries.

380 cst $665
180 cst $678
MDO $956

Fujairah (delivered indications 3-8)

380 cst $688
180 cst $721
MDO $1080

Rotterdam

Yesterday in the MOC hsfo was traded between 645-647.50 usd and lsfo between 668-685 usd.

Indications for delivered bunkers:

380cst : $ 660
(1.0 %) :$ 681
180cst: $ 686
(1.0 %):$ 712
MGO 0.1%S: $ 955