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After having consolidated in the early morning, product contracts have gained ground at ICE and NYMEX around midday, whereas crude oil contracts have traded near their intraday lows. Last week's massive draws in product stocks in the USA have provided the heating oil with some support in London and New York. Investors focus on important US economic data which will be published later this afternoon.

Oil futures at ICE and NYMEX saw some profit taking on Wednesday morning and tested their short-term supports at 1,030.25 dollars for the G.Oil and at 125.70 dollars for the Brent. These supports initially proved strong, however. As equities gained ground and the dollar saw some profit taking, oil futures recovered until early afternoon. As investors were waiting for the DOE's data, published at 3.30 p.m. they remained cautious. These showed massive draws in product stocks in the USA. As data also showed a higher demand for oil products, oil futures were lifted to new highs, with the WTI crude testing its first resistance at 106.95 dollars. As this resistance proved strong, market players took some profit. The downward reaction was reinforced by the bearish technical constellation and the dollar which regained some ground again. Crude oil futures in particular received some selling pressure, as analysts and politicians think that the currently high level of oil prices may hamper the global economy.

ICE Gasoil contract for April delivery settled at at 1,038.50 dollars on Wednesday. This was +2.00 dollars above Tuesday's settlement. With some 77,600 contracts the traded volume was above average.

The stochastic indicator remains bearish at ICE and NYMEX charts this morning. From the technical stance the indicator's constellation indicates further profit taking. Yesterday evening's selling orders have probably consumed most of the downward potential, however, especially as the WTI's support at 104.65 dollars, the Brent's support at 124.50 dollars and the G.Oil's support at 1,028.00 have not been breached yet. According to technical analysts, oil futures may test these supports today but will not see new selling impulsions unless these supports are breached on the long run.

U.S.

Nymex acces easing. Oil futures hardly changed in Asian trading hours and on Globex electronic trading platform this morning. After yesterday evening's downward correction oil futures remained on a lower level trading in a rather narrow range. The traded volume is about on average. Investors now closely watch the development at European stock exchanges, impulsions from forex markets and today's economic indicators.

API's: Crude oil +2.8; distillates -3.5; gasoline -2.1 million barrels vs previous week. Refinery utilization -1.5%
DOE's; Crude oil +1.8; distillates -4.7; gasoline -1.4 million barrels vs previous week. Refinery utilization -1.2%
Forecasts: Crude oil +1.6; distillates -1.1; gasoline -1.2 million barrels vs previous week

Houston (ex-wharf indications 14-3)

380cst $737
180cst $777
MGO $1057

Very tight avails for 180 cst

New Orleans (ex-wharf indications 14-3)

380cst $739
180cst $779
MGO $1059

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

Crude is back on its bearish track with WTI -$0.67 Singapore paper is mirroring crude with -$5.70 for 180cst and -$6.25 for 380cst for Mar, and for Apr 180 cst -$5.25 and 380cst -$5.25 with MGO contracts Mar -$0.40 and Apr -$0.39. The cargo market is reacting with 180cst +$1.89, 380cst +$0.19 and MGO -$0.01.

The Singapore fuel oil markets were up only marginally app.$1.0 yesterday morning. The escalating outright bunker prices have dampened demand significantly with the Singapore February bunker volume dropping by 15.7% to a new 2- year low. The delivered bunker premiums were at app. $3.0 above cargo prices. Bunker fuel oil swaps lost up to $6/mt at the front and only a few cents at the backend of the forward curve for Singapore paper, erasing backwardation in the front months. However it is still relatively attractive in Calendar 2013 papers that are offered at up to $50/mt discount versus spot prices in Singapore and app. $45/mt in Rotterdam. This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $735
180 cst $747
MGO $1010

Fujairah (delivered indications 15-3)

380cst $742
180cst $762
MGO $1050

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA hsfo markets firmed, trading considerably higher on surging crude. The tight avails of cutterstocks underpin the markets. The lsfo tightness is not expected to resolve soon, with present loading delays not contributing to any swift inversion, shortages are expected until next month.

Rotterdam

Indications for delivered bunkers:

380cst : $ 720
(1.0 %) :$ 769
180cst: $ 740
(1.0 %):$ 789
MGO 0.1%S: $1030