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After having declined and fallen through supports this morning , oil futures have slightly recovered around noon. Technical buying is considered to have been the main reason for this rebound, as the WTI crude has fallen only slightly below the psychologically important 80.00 dollars support. Investors avoid a lower price than this, particularly as the contract had already lost more than 3.50 dollars.

Wednesday morning, market participants waited for the DOE's oil inventories data and on the Fed's decision regarding future measures of monetary policy. Quotations at ICE and NYMEX thus traded in a rather narrow range on a high level until in the afternoon, set for a test of supports. The euro was able to stick to its gains then, hampering technical profit taking. Given the builds in all categories and the weak demand, the DOE's figures were taken as clearly bearish, triggering a downward movement, with ICE futures declining less than those at NYMEX. As expected, the Fed decided to continue its "Operation Twist" until the end of 2012 but did not announce any more aggressive measures to bolster the economy. Many market players had hoped, the Fed would do so. in the face of these news, oil prices were rather volatile during late trade, settling with significant losses. The pressure on prices still weighs this morning, even pushing the Brent down to an 18-month. The WTI fell to a 8.5 month-low.

ICE Gasoil contract for July delivery settled at 841.25 dollars on Wednesday. This was 3.75 dollars below Tuesday's settlement. With some 63,300 contracts the traded volume was above average.

OPEC: Over the last three days negotiations between Iran and the five permanent members of the UN Security Council plus Germany have been taking place in Moscow. However, last night they concluded without agreement and with the Iranian reneging on an earlier deal with the UN nuclear watchdog. As a result the 1st July EU embargo on Iranian crude imports will proceed along with further US and EU sanctions.

As its lines have crossed at the charts of ICE and NYMEX, the stochastic indicator gives fresh selling signals this morning. Given yesterday evening's significant downward movement, some of the downward potential has already been spent. However, the breach of the Brent's and the WTI's supports has rendered new leeway down. Analysts thus asses the technical constellation as bearish this morning.

U.S.

Nymex access losing: Oil futures traded lower in Asian trading and on Globex electronic trading platform this morning. At the beginning of the European session they have continued falling, with crude oil marking new long-time lows. Market players expect new downward potential if the euro slides and breaches its mid-term supports. The traded volume was well above average. Traders will eye the late reactions to the FOMC's decision on the forex market and the performance of stock markets. As to economic indicators, there is a string of important indicators scheduled today.

API's: Crude oil -0.6; distillates -0.3; gasoline +1.1 million barrels vs previous week. Refinery utilization +2.4%
DOE's; Crude oil +2.9; distillates +1.2; gasoline +0.9 million barrels vs previous week. Refinery utilization +0.1%
Forecasts: Crude oil -1.0; distillates +1.4; gasoline +1.2 million barrels vs previous week.

Houston (ex-wharf indications 20-6)

380cst $577
180cst $609
MGO $900

New Orleans (ex-wharf indications 20-6)

380cst $582
180cst $617
MGO $910

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

Crude is back on its bearish track, dropping with WTI -$3.81. Singapore paper is mirroring crude with -$14.10 for 180cst and -$14.25 for 380cst for Jul, and for Aug 180 cst -$14.10 and 380cst -$14.25 with MGO contracts Jul -$3.00 and Aug -$3.00. The cargo market is lagging with 180cst +$7.79, 380cst +$6.76 and MGO +$1.43.

The Singapore fuel oil markets rose more than $6.5 during the morning window yesterday. The cargo premiums saw some rebound and the Asian Fuel Oil cracks also narrowed. The bunker premiums climbed to $8.5-9.0 above cargo prices. Bunker fuel oil swaps lost app. $5/mt in the front of forward curve both for papers yesterday. Backend was slightly stronger, posting app. $4/mt losses. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $575
180 cst $585
MGO $800

ARA (Amsterdam - Rotterdam - Antwerp)

The avail constraints continue to underpin both hsfo and lsfo levels, despite falling crude prices. Not much relief is expected within the next couple of weeks, with continuing loading delays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 554
(1.0 %) :$ 592
180cst: $ 576
(1.0 %):$ 610
MGO 0.1%S: $828