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Oil prices rallied at midday along with the euro and European equities after ECB president Mario Draghi's comments in favor of a continuance of the euro zone. Draghi said in his speech the ECB would undertake any step necessary to guarantee the euro zone could persist. As a consequence equity markets and the euro rebounded from their lows, also supporting oil prices.

Oil futures were muted in electronic morning trading on Wednesday, hitting first support lines early in the session on a rather bearish market sentiment. Prices then rose as the euro was boosted by comments of Ewald Nowotny, member of the ECB who said there were arguments in favor of giving the European Stability Mechanism a banking license. The Brent and the gasoil at the ICE rose until their first resistance lines, the crude oil in New York even hitting its second resistance. Still, traders were cautious ahead of the DoE report and sold off upon its release. The figures were as bearish as were the API's the night before and consequently oil prices dropped to their support lines. The 882.50 dollar support of the gasoil contract and the 86.90 dollar support of the WTI crude proved strong and limited the losses. Oil prices then consolidated on this level before a surge in US equity markets that was not bolstered by any bullish fundamentals boosted oil prices that breached their resistance lines in the process and finally settled higher at the end of the day.

ICE Gasoil contract for August delivery settled at 886.75 dollars on Wednesday. This was 1.50 dollars below Tuesday's settlement. With some 41,200 contracts the traded volume was below average.

The selling signals that the RSI and the Stochastic indicators triggered at the beginning of the week have lost their influence, the Stochastic oscillator having entered the oversold level. Still, a buying signal will not be triggered before its two lines haven't crossed. Wednesday's late rally could entail some profit taking in morning trading, but in view of the rather neutral technical constellation US indicators will be in the center of attention today. Thus oil prices are seen in a narrow lateral range before their release.

U.S.

Nymex access easing: Oil futures are easing in Asian trading and on Globex electronic trading platform this morning, hitting first support lines as traders take some profit after Wednesday's overdone gains. The traded volume is about on average. Market participants eye equities and forex markets today as well as a string of economic indicators in the afternoon.

API's: Crude oil +1.3; distillates +2.6; gasoline +2.3 million barrels vs previous week. Refinery utilization +1.9%.
DOE's; Crude oil +2.7; distillates +1.7; gasoline +4.1 million barrels vs previous week. Refinery utilization +1.0%.
Forecasts: Crude oil -0.2; distillates +0.6; gasoline +0.1 million barrels vs previous week.

Houston (ex-wharf indications 25-7)

380cst $610
180cst $640
MGO $950

New Orleans (ex-wharf indications 25-7)

380cst $605
180cst $644
MGO $965

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

Crude is easing, only gaining with WTI +$0.09. Singapore paper is bouncing up with +$6.20 for 180cst and +$6.05 for 380cst for Aug, and for Sep 180 cst +$6.20 and 380cst +$6.05 with MGO contracts Aug +$0.40 and Sep +$0.40. The cargo market is slowing as well with 180cst -$0.29, 380cst +$0.49 and MGO -$0.46.

The Singapore fuel oil market prices weakened slightly more than -$0.25 during the morning Platts window yesterday. The market remained firm and cargo premium were seen at more than $3.0. The delivered bunker premiums were app. $7.4 above cargo prices yesterday. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $620
180 cst $630
MGO $890

ARA (Amsterdam - Rotterdam - Antwerp)

HSFO and LSFO levels eased on the slipping Euro and Greek/Spanish worries. Continuing loading delays and cutter stock shortages result in high premiums for prompt suppliers however, if any avails at al. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 602
(1.0 %) :$ 645
180cst: $ 626
(1.0 %):$ 690
MGO 0.1%S: $890