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Oil futures have edged higher around noon, breaching their resistance lines. The IEA is only to consider the release of strategic oil reserves after July 1st. It was necessary to await the impacts of the EU's oil embargo on the market before a decision could be made.

Along with the firmer euro and rising equities oil futures were able to mark some gains on Wednesday morning, breaching first resistance lines. In the afternoon disappointing figures regarding US durable goods orders and news regarding Iran's nuclear program caused a sharp downward correction. Futures fell down to their supports at 117.50 dollars (Brent) respectively 991.00 dollars (G.Oil). According to reports, Tehran may consider to make concessions to the West to avoid the percussions of the EU's embargo which is set to start on July 1st. Later in the afternoon, investors focused on the DOE's data which showed higher than expected builds in crude oil stocks. This weighed on oil futures, whereas the FOMC's decision on interest rates made them rise again shortly afterwards. Interest rates are to remain low on the long run. However, the Fed said the economic development showed a positive tendency. Oil futures at ICE and NYMEX pared their gains accordingly in the evening, settling with considerable gains.

ICE Gasoil contract for May delivery settled at 996.00 dollars on Wednesday. This was unchanged since Tuesday's settlement. With some 33,400 contracts the traded volume was above average.

The stochastic indicator is slightly bullish for the WTI crude, whereas the indicator remains neutral at ICE charts. As to the Brent, the stochastic' lines meet, however, giving the indicator a bearish note. If its lines cross in the course of the day, there will be a clear selling signal. As the technical constellation currently does not provide any new impulsions, analysts still regard the situation as neutral this morning.

U.S.

Nymex access gaining: Oil futures have hardly changed in Asian trading and on Globex electronic trading platform this morning. The traded volume has been far below average. Investors now watch the performances of stock and forex markets, and today's economic indicators.

API's: Crude oil -1.0; distillates -3.6; gasoline -3.6 million barrels vs previous week. Refinery utilization +0.6%
DOE's; Crude oil +4.0; distillates -3.1; gasoline -2.2 million barrels vs previous week. Refinery utilization +0.1%
Forecasts: Crude oil +1.7; distillates +1.0; gasoline +1.0 million barrels vs previous week

Houston (ex-wharf indications 26-4)

380cst $698
180cst $728
MGO $1040

Very tight avails for 180 cst

New Orleans (ex-wharf indications 26-4)

380cst $704
180cst $736
MGO $1050

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

Crude is slowing with WTI +$0.28. Singapore paper is slowing as well with +$1.70 for 180cst and +$1.75 for 380cst for May, and for June 180 cst +$1.70 and 380cst +$2.00 with MGO contracts May +$0.39 and June +$0.41. The cargo market is slowing as well with 180cst +$1.64, 380cst +$1.23 and MGO +$0.27.

The Singapore fuel oil markets rose more than $1.25 yesterday morning. Near term market remains slow but the in coming months market may see some level of tightness as the backwardation curve strengthened. The delivered bunker premiums eased to around $6.0 above cargo prices. Bunker fuel oil swaps yesterday remained largely unchanged from previous day, posting only a few cents gains at the front of the forward curve. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $716
180 cst $726
MGO $990

Fujairah (delivered indications 26-4)

380cst $720
180cst $743
MGO $1048

ARA (Amsterdam - Rotterdam - Antwerp)

The week started on a bullish note, with tigh hsfo avails, while the lsfo avails improved on incoming cargoes. The Eastern arbitrage seems to open, and more fixtures are expected.

Rotterdam

Indications for delivered bunkers:

380cst : $ 695
(1.0 %) :$ 740
180cst: $ 725
(1.0 %):$ 758
MGO 0.1%S: $1000