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In a reaction on yesterday's gains, which have been considered as exaggerated, oil prices have already edged lower in the early morning. As supportive news were lacking, oil futures have breached first supports at ICE and NYMEX. Investors seem to have realised that the current market situation is rather bearish than bullish, after the FED has not announced the widely expected expansive measures in its meeting minutes and the DOE's oil inventories data indicated a still weak demand. The IEA's report - like those of the EIA and the OPEC - has not given any clear bullish signals. After the Brent's and the WTI's supports have not been breached sustainably, investors wait for economic data regarding the US labor market, that are to be published this afternoon.

Oil futures at ICE and NYMEX have traded slightly higher on Wednesday morning whereas the rise was mainly due to a technical reaction on Tuesday's losses, according to analysts. The Brent and the WTI have climbed ahead of the DOE's data that were to be published later in the afternoon. Both benchmark blends have breached short-term resistance lines, whereas the ICE G.Oil consolidated on a higher level. The DOE's data on US oil inventories have come out mixed. First the bearish impact of the builds in product stocks and the weak demand seemed to predominate but the downward correction did not last for long. Markets have become rather volatile later as investors were also waiting for the FOMC's meeting minutes. After this was published at 8 p.m. oil markets remained volatile, however. In a first reaction, futures edged lower but little later they saw a correction up settling with new highs. Thus oil futures renewedly diverged from the euro and equities which marked losses last night.

ICE Gasoil contract for July delivery settled at 874.00 dollars on Wednesday. This was 1.50 dollars below Tuesday's settlement. With some 44,100 contracts the traded volume was below average.

Even though the stochastic indicator is bullish and, with its lines crossing, gives a buying signal, the RSI is bearish having fallen back below the 70%-line at Gasoil and Brent charts. Analysts thus still assess the situation as neutral. They expect prices to continue consolidating on a higher level above 97.70 dollars (Brent) and 84 dollars (WTI).

U.S.

Nymex access easing: Oil futures have edged lower in Asian trading and on Globex electronic trading platform this morning. After Wednesday's gains oil futures at ICE and NYMEX show a softer tendency. The traded volume is on average. Market players now closely watch equities and forex markets as well as the OPEC's monthly energy report and economic indicators.

API's: Crude oil -0.7; distillates -0.7; gasoline +2.5 million barrels vs previous week. Refinery utilization -0.6%
DOE's; Crude oil -4.7; distillates +3.1; gasoline +2.8 million barrels vs previous week. Refinery utilization -0.9%
Forecasts: Crude oil -1.3; distillates +0.5; gasoline -0.4 million barrels vs previous week

Houston (ex-wharf indications 11-7)

380cst $575
180cst $608
MGO $930

New Orleans (ex-wharf indications 11-7)

380cst $583
180cst $618
MGO $930

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

Crude is firming with WTI +$0.48. Singapore paper is also starting to turn with +$3.15 for 180cst and +$3.20 for 380cst for Jul, and for Aug 180 cst +$3.55 and 380cst +$2.75 with MGO contracts Jul -$0.20 and Aug -$0.01. The cargo market is tracking crude and paper with 180cst +$1.30, 380cst +$0.76 and MGO +$0.68.

The Singapore fuel oil markets prices rose by $0.5 - 1.5/mt Yesterday. The July incoming cargoes are estimated to be 2.8 to 2.9 million mt. The delivered bunker premiums were higher at $8.50 above cargo prices yesterday as crude strengthen after the window. Bunker fuel swaps gained a few cents in the front while losing a little at the back of the curve; somehow unusual behavior not seen recently. As a result of the change in the curve the backwardation discount increased by a dollar roughly from the front to 2013 papers. Markets are trading a dollar higher this morning.

High premiums for prompt deliveries.

380 cst $595
180 cst $605
MGO $855

ARA (Amsterdam - Rotterdam - Antwerp)

Both hsfo and lsfo prices eased somewhat on softer crude values, but ARA prices are still underpinned by continuing barge congestion. Not much relief is expected before the end of the week, with continuing loading delays, cutter stock shortages and arbitrage loadings reported. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 572
(1.0 %) :$ 618
180cst: $ 597
(1.0 %):$ 636
MGO 0.1%S: $860