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U.S. oil futures held above the $100-a-barrel level this morning, as better than expected Chinese trade data supported appetite for growth-linked assets.

Oil futures in London and New York showed a slightly steady tendency on Wednesday morning as Morgan Stanley analysts had warned that crude oil stocks in Cushing, Oklahoma, might soon drop to a level that could cause bottlenecks in supply. Particularly WTI surged limiting the decline in Gasoil and Brent futures - despite a renewedly disappointing purchasing manager index out of China and the EIA's bearish monthly energy report released Tuesday evening. As to the crisis in Ukraine, Russia's president Vladimir Putin called on the separatists to postpone the planned referendum over a separation of the region of Donezk. The West has embraced this demand, taking it for a step towards a diplomatic solution. However, oil prices only briefly retreated on the news. Market players were already waiting for the release of the DOE's report on US oil inventories at 4.30 p.m. that day. The figures came in rather bullish and so quotations regained considerable ground in evening trade breaching several resistances. By the time of settlement, oil futures marked new highs.

ICE Gasoil contract for May delivery settled at 902.00 dollars on Wednesday. This was +1.75 USD above Tuesday's settlement. With some 42,800 deals, the traded volume was below average.

The stochastic indicator remains giddy changing its bias almost every day. Whilst the indicator was formally still bearish at ICE charts yesterday morning, it turned bullish again this morning, with the black line surpassing the red one. Due to this constellation, our technical assessment is slightly bullish this morning but one has to keep in mind that the influence of the technical situation was but limited in the past few days. It will most likely keep being put in the background by market fundamentals. Even though WTI yesterday exceeded the resistance limiting its downtrend, Brent's downtrend is still intact limiting the upside. Today, the first important hurdle for the Brent to surpass is the resistance at 108.10 USD. If Brent sustainably breaks above this level, the mid-term resistance of the downtrend (at 108.55 USD) might be tested.

U.S.

Nymex on average: In electronic morning trading, oil futures consolidated yesterday's highs as market players were waiting for new cues. Meanwhile they have edged lower as investors take some profits from the gains oil futures marked yesterday after the release of the DOE's data. The traded volume at NYMEX is far below average at this time of day. Investors are now eying stock and forex markets, the developments in Ukraine as well as today's economic indicators. They will also keep a close eye on the ECB's meeting which is scheduled today.

API: Crude oil -1.8; Distillates +0.8; Gasoline +2.4 million barrels vs previous week.
DOE: Crude oil -1.8; Distillates -0.4; Gasoline +1.6 million barrels vs previous week.
Forecasts: Crude oil +1.0; Distillates +0.7; Gasoline -0.9 million barrels vs previous week.

Houston (ex-wharf indications 8-5)
380cst $603
180cst $678
MGO $976

New Orleans (ex-wharf indications 8-5)
380cst $609
180cst $661
MGO $978

Singapore (delivered indications 8-5)

WTI is down with -$0.10. Singapore paper is up with +$1.25 for 180cst and +$0.75 for 380cst for May, and for Jun 180 cst +$1.00 and 380cst +$0.25 with MGO contracts slightly bullish May +$0.30 and Jun +$0.22. The cargo market is bearish with 180 cst +$3.10, 380cst -$1.68 and MGO -$0.40.

The Singapore fuel oil prices were trading $1.5-3.0 higher during the Platts window yesterday. The strong buying interest narrowed the Asian fuel oil crack. The delivered bunker premiums were seen some $4.0 above cargo prices.

380cst $591
180cst $605
MGO $920

Fujairah (delivered indications 8-5)

380cst $602
180cst $638
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $570
(1.0 %) : $624
180cst: $610
MGO 0.1%S: $868