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The euro has regained some ground, bouncing off its support after having slipped to a four-month low as Europe’s debt crisis worsened and a U.S. factory gauge contracted. The Dollar Index extended its longest rally and German bond yields dropped to all-time lows.

Oil futures retreated at ICE and NYMEX on Wednesday morning, after the API had forecast massive builds in US crude oil stocks on Tuesday. Until midday, quotations saw a slight upward correction, however. Their supports proved strong and better than expected US economic data lifted investors' spirits. The DOE's data on US oil inventories, published at 16h30 that day, came out mixed but, given the stocks at record highs, the declining euro and renewed speculations about the release of strategic reserves, selling orders predominated in the evening. Thus oil futures edged further down. Yesterday, oil prices at ICE and NYMEX remained softer. Losses were capped by their strong supports, at first, but a string of worse-than-expected US economic data put some more pressure on quotations in the afternoon. Enbridge's Seaway pipeline was put on stream and caused some profit taking at ICE and with product futures at NYMEX. The Brent and the G.Oil even marked new 1-year lows at 106.62 dollars resp. 903.50 dollars. As demand for the WTI crude rose, and bets on a narrowing spread between the Brent and the WTI crude increased, the downward potential of the US benchmark blend was rather limited.

ICE Gasoil contract for June delivery settled at 918.50 dollars on Thursday. This was -13.00 dollars below Wednesday's settlement. With some 60,900 contracts the traded volume was above average.

The stochastic indicator is still bearish for the Brent this morning, whereas it does not give any clear signals for the WTI and the G.Oil and can therefore be interpreted as rather neutral, see also technical analysis. Given the current down trend, that does not yet indicate that prices will form a bottom, technical analysts still take a slightly bearish stance, expecting oil futures to test their downward potential again.

U.S.

Nymex access losing: Oil futures have diverged in Asian trading and on Globex electronic trading platform this morning. The WTI crude has significantly retreated, whereas futures at ICE have still traded above their lows of this year. Accoring to market participants, the declining euro and losses at Asian stock markets weighed on futures. The traded volume has been above average. Investors now eye the performances of stock and forex markets, and today's economic indicators.

Houston (ex-wharf indications 18-5)

380cst $649
180cst $679
MGO $976

New Orleans (ex-wharf indications 18-5)

380cst $648
180cst $678
MGO $975

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

Crude is slipping, losing with -$0.56 Singapore paper is gaining bearish momentum, losing with -$19.55 for 180cst and -$20.30 for 380cst for June, and for July 180 cst -$19.55 and 380cst -$20.30 with MGO contracts June -$2.03 and Jul -$2.01. The cargo market is in line with crude and paper, losing with 180cst -$1.41, 380cst -$1.73 and MGO -$0.79.

The Singapore fuel oil stocks fell by 1.5 million barrels to around 18.4 million barrels, lowest in four weeks. This morning markets are trading further down.

High premiums for prompt deliveries.

380 cst $645
180 cst $653
MGO $900

ARA (Amsterdam - Rotterdam - Antwerp)

The NWE bunker markets were subdued, with most suppliers off for Ascension day. The little trading handled was on considerably lower levels in Rotterdam and Antwerp. Demand was reported low as traders are not keen n fixing in anticipation of the further weakness on a continuing turmoil in Europe. LSFO remains quite tight in Rotterdam.

Rotterdam

Indications for delivered bunkers:

380cst : $ 614
(1.0 %) :$ 659
180cst: $ 631
(1.0 %):$ 656
MGO 0.1%S: $905