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The price of crude oil was ticking higher Thursday morning following downbeat manufacturing data out of China and concerns over Fed tapering. Light Sweet Crude Oil (WTI) futures for January delivery, the most actively traded contract, edged up USD0.31 to USD94.16 a barrel. Yesterday, oil settled marginally lower after the official Energy Information Administration's weekly oil report showed US crude stockpiles to have increased last week, albeit less than what analysts expected. Some mixed macroeconomic data out of the US also impacted oil prices, even as news trickled in that the US Federal Reserve has preferred to continue its quantitative easing program, although indications were members favored slowing down the pace of buying soon. ICE Gasoil contract for December delivery settled at 911.00 USD on Wednesday. This was 0.25 USD above Tuesday's settlement. With some 52,600 deals, the traded volume was about on average.

Oil markets showed a softer tendency on Wednesday morning, chiefly due to technical factors. By noon, they had already breached their first supports. However, there was no sharp technical decline as investors remained cautious waiting for the DOE's data due at 4.30 p.m. yesterday afternoon. Reports on Libya's Greenstream gaspipeline having restarted and the oil terminal Mellitah resuming exports have also slightly weighed on oil markets. Late in the afternoon, quotations at ICE and NYMEX rallied against the backdrop of the DOE's bullish oil inventories data. Oil futures hit new highs even. The massive draw in distillate stockpiles and the fact that total US oil demand has surpassed 20 mbpd for the fourth consecutive week have given a fillip to oil futures. Investors neglected bearish aspects at that point in time and so ICE futures settled with new highs yesterday. Only WTI was slightly weaker as crude oil stocks in Cushing, Oklahoma, had considerably increased again. Therefore, the spread between Brent and WTI (January contracts) climbed above 14 dollars.

The selling signals provided by the stochastic indicator are gone as the lines of the indicator are currently converging again, with the lines already touching at the G.Oil and the WTI charts. If the lines cross, there might even be a buying signal. In contrast, the RSI is in overbought territory at the Brent chart, hovering above 70%. If it drops below the 70% marker, there will be a selling signal. With new signals lacking and the possibility that there might be a buying as well as a selling signal in the course of the day, we assess the technical constellation as neutral this morning. After yesterday's sharp rise in ICE futures and given the widening of the spread between Brent and WTI, market players might be prompted to take some profits that would pressure ICE futures.

U.S.

Nymex neutral: After yesterday's sharp rise, oil futures have consolidated on a high level in Asian trading this morning, with investors still digesting the DOE's bullish figures. The traded NYMEX volume is below average for this time of day. Market players are eying the development at European markets, new signals from forex trading and today's economic indicators. Moreover, they will eye nuke talks between Iran and the 5+1 powers.

Survey: crude oil +0,8; distillates ±0,0; gasoline +0,9 vs million barrels vs previous week.
API: crude oil +0,5; distillates -4,9; gasoline +0,1 vs million barrels vs previous week.
DOE: crude oil +0,4; distillates -4,8; gasoline -0,3 vs million barrels vs previous week.
v Houston (ex-wharf indications 20-11)
380cst $585
180cst $653
MGO $970

New Orleans (ex-wharf indications 20-11)
380cst $587
180cst $639
MGO $973

Singapore

Crude is bullish, gaining with WTI +$0.86. Singapore paper is bullish with +$4.60 for 180cst and +$4.50 for 380cst for Nov, and for Dec 180 cst +$3.85 and 380cst +$4.50 with MGO contracts Nov +$1.40 and Dec +$1.25. The cargo market is slightly bearish with 180 cst -$2.46 380cst -$1.26 and MGO +$0.28.

380cst $600
180cst $606
MGO $910

Fujairah (delivered indications 21-11)

380cst $618
180cst $665
MGO $990

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $576
(1.0 %) :$597
180cst: $606
(1.0 %):$ 627
MGO 0.1%S: $ 885