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Oil prices are posting reasonable gains this morning following the publication of the minutes of the last FED meeting. The minutes show that the US central bank is considering a further economic stimulus which could be "deemed necessary fairly soon."

After Tuesday's price rally, oil futures have traded with a downward tendency on Wednesday morning. Retreating equities but above all technical profit taking has weighed on quotations at ICE. Given the bullish data on oil inventories released by the API on Tuesday night, the downward movement has been limited, however, and so the WTI crude kept trading between its first support and its first resistance line. Only when the DOE published its data, markets have received fresh impetus that made oil futures rise to new highs until late in the evening. In all, the DOE's figures came out bullish but they also contained some bearish factors and so oil futures' rise was rather subdued. The traded volume rose in the course of the evening as investors waited for the FOMC's meeting minutes that were to be published at 8 p.m. The minutes of the FOMC's meeting from July 31 to August 01 met investors' expectations indicating an imminent intervention by the Fed, analyst Matt Smith of Summit Energy concluded. Quotations at ICE and NYMEX thus renewedly climbed keeping their steady tendency until this morning, as did Asian equities and the euro. Oil prices have reached new all-time highs, despite of the disappointing Chinese HSBC PMI.

ICE Gasoil contract for September delivery settled at 985.00 dollars on Wednesday. This was 3.75 dollars below Tuesday's settlement. With some 60,500 contracts the traded volume was above average.

The stochastic indicator is slightly bullish at ICE charts this morning, while futures remain overbought, see also technical analysis. Technical analysts's assessment of the current situation basically remains unchanged today. They still see a slightly bullish tendency as long as the steep uptrend is intact and as there are no clear selling signals from the stochastic or the RSI.

U.S.

Nymex access gaining: Oil futures have gained ground in East-Asia and on Globex electronic trading platform this morning. After the release of the DOE's bullish data and the FOMC's meeting minutes oil futures have remained steady and keep on rising, also supported by gaining Asian equities. Thus the WTI crude has already marked a new 3.5 month high at 98.17 dollars. The traded volume is above average. Market participants now eye the performance of stock and forex markets and a string of economic indicators.

API's: Crude oil -6.0; distillates -1.0; gasoline +0.9 million barrels vs previous week. Refinery utilization -0.5%.
DOE's; Crude oil -5.4; distillates +1.0; gasoline -1.0 milliion barrels vs previous week. Refinery utilization -1.4%.
Forecasts: Crude oil +0.2; distillates +1.3; gasoline +0.8 million barrels vs previous week.

Houston (ex-wharf indications 22-8)

380cst $663
180cst $699
MGO $1035
v New Orleans (ex-wharf indications 22-8)

380cst $678
180cst $713
MGO $1050

Singapore (correct as per 14:30hrs LT-delivered indications)

Crude is bouncing up with WTI +$1.20. Singapore paper is bullish still, gaining with +$11.70 for 180cst and +$11.65 for 380cst for Sep, and for Oct 180 cst +$10.75 and 380cst +$10.70 with MGO contracts Sep +$1.80 and Oct +$1.80. The cargo market is in line with crude and paper, gaining with 180cst +$1.46, 380cst +$0.20 and MGO +$0.35.

The Singapore fuel oil markets did not have much significant changes, mostly flattish from the previous during the morning Platts window. The continually persistent high outright prices were dampening demand in otherwise ample supplied market. The delivered bunker premiums were seen around $7.0 above cargo prices yesterday. Bunker fuel oil swaps gained up to $1/mt at the front of the forward curve. Backend was again slightly weaker, posting up to $1/mt losses. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $682
180 cst $700
MGO $990

Fujairah (delivered indications 23-8)

380cst $690
180cst $710
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA continues with the bullishness. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets and a heavy maintenance programme for September with two important North Sea oilfields set for a one month closure. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 666
(1.0 %) :$ 721
180cst: $ 690
(1.0 %):$ 759
MGO 0.1%S: $988