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Oil prices are under pressure this morning as traders sell positions following a surge in the yields for Spanish and Italian government bonds. The technical constellation also weighed on prices, as the Brent's resistance at 97.80 dollars and the WTI crude's resistance at 83.00 dollars remained strong. US economic data might provide some new cues this afternoon but investors' focus will be on news regarding the OPEC's meeting. At the moment, oil futures have slightly pulled back from their lows, as the Brent's second support at 96.50 dollars proved strong.

Like the euro, oil futures have slightly climbed on Wednesday morning, testing their upward potential. In the early afternoon, unconvincing US economic indicators and retreating stocks have prompted investors to take some profits, however. Little later, quotations have rebounded, supported by the DOE's data on oil inventories. They have marked fresh highs but trade became more and more nervous, with market players waiting for the OPEC meeting in Vienna, scheduled today. Investors have therefore avoided greater risks and seized oil futures' gains to take some profit. Reports saying that Libya and the United Arab Emirates are planning to boost their output this year have also weighed on quotations in late afternoon trade.

ICE Gasoil contract for July delivery settled at 847.50 dollars on Wednesday. This was 1.50 dollars above Tuesday's settlement. With some 81,700 contracts the traded volume was far above average.

The lines of the stochastic indicator crossed this morning at the WTI charts, giving a modest buying signal. As to the Brent and the G.Oil, the indicator is still neutral. It might also give a buying signal, however, if its lines cross in the course of the day. Analysts thus assess the situation as slightly bullish but highlight the decisive fundamental factors like the OPEC meeting and new elections in Greece which are currently closely watched by market players.

U.S.

Nymex access gaining: Oil futures traded higher in Asian trading and on Globex electronic trading platform this morning. Gains at Asian stock markets and the still stronger euro are to have provided momentum. The traded volume is slightly above average. Market players now look ahead to the performance of stock and forex markets, today's economic indicators and news from the OPEC's reunion.

API's: Crude oil +1.6; distillates +0.5; gasoline -0.9 million barrels vs previous week. Refinery utilization +0.7%
DOE's; Crude oil -0.2; distillates -0.1; gasoline -1.7 million barrels vs previous week. Refinery utilization +1.0%
Forecasts: Crude oil -1.8; distillates +0.7; gasoline +0.4 million barrels vs previous week

Houston (ex-wharf indications 13-6)

380cst $582
180cst $613
MGO $895

New Orleans (ex-wharf indications 13-6)

380cst $583
180cst $622
MGO $890

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

Crude is back on its bearish track with WTI -$0.56. Singapore paper is slowing with -$1.50 for 180cst and +$0.25 for 380cst for Jun, and for Jul 180 cst -$1.55 and 380cst +$0.25 with MGO contracts Jun -$0.30 and Jul -$0.30. The cargo market is mixed as well with 180cst +$6.84, 380cst +$6.75 and MGO -$0.30.

The Singapore fuel oil markets rose app $6.75 during the morning yesterday tracking crude movement. Strong buying interests narrowed the Asian Fuel Oil crack. The delivered bunker premiums slipped to around $6.5 above cargo prices yesterday. Bunker fuel oil swaps posted up to $2.5/mt gains at the front of the forward curve while backend was around one dollar weaker. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $600
180 cst $610
MGO $825

Fujairah (delivered indications 14-6)

380cst $610
180cst $628
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market had an active start of the week, but after crude values dropped, demand faded. Despite crude losing, the local avails are still tight, with most suppliers fully booked for the week.

Rotterdam

Indications for delivered bunkers:

380cst : $ 576
(1.0 %) :$ 614
180cst: $ 600
(1.0 %):$ 637
MGO 0.1%S: $840