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Crude oil prices rebounded in Asia this morning with events in Yemen offering fresh support as Saudi Arabia and allies bomb Houthi rebel positions and President Abdrabbuh Mansour Hadi hangs onto power.

Oil futures at ICE and NYMEX tested their first supports in early Wednesday trading due to the fundamentally bearish constellation. The better than expected Ifo business climate index and the disappointing figures concerning US durable goods orders influenced the forex trading which triggered once again a change in direction at the oil market. The euro-dollar parity profited from these figures and dollar-negotiated oil futures which increased until the afternoon breaching first resistances. But market players were waiting for the release of the US oil inventory report as per DOE at 3.30 pm. The figures were to be interpreted as bearish due to the fresh record levels in crude oil stocks and an increase in US oil production. Therefore, oil futures eased once again returning from their Wednesday's highs. Market players used this price decline at ICE and NYMEX to cover their short positions and to go long due to the fact that the dollar stayed rather weak while the euro consolidated near its 1.10 USD mark. Therefore, oil futures orientated upwards again in the evening. Late in the evening, the situation in Yemen escalated. Saudi Arabia intervened with air attacks to support Yemen's government troops after the president Hadi fled on a ship. Market players braced for falling prices by engaging in buying orders due to the worries concerning oil exports from the Middle East. Therefore, oil futures jumped upwards again.

ICE Gasoil contract for April delivery settled at 524.50 USD on Wednesday, this is +1.25 USD abvoe Tuesday's settlement. With some 44,200 deals the traded volume (front month) was below average.

Oil futures at ICE and NYMEX breached the upper limits of their short-term uptrend triggering buying orders. Those technical signals caused fresh upward margins which were already tested during the night. Neither the stochastic indicator nor the RSI trigger any important signal this morning. But the stochastic indicator might trigger further selling signals in the course of the day if its lines sustainably cross. The technical constellation might be considered as slightly bullish this morning due to the upward breaches this morning but a signal of the stochastic indicator might change the situation quickly.

U.S.

Nymex far above average: Oil futures hardly changed this morning starting almost at their Tuesday's settlement levels. The traded volume at NYMEX is far above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and for economic indicators that are on the agenda today. Moreover, they are focusing on the DOE's data (3.30 p.m.) and the official US oil inventory data as per DOE.

Forecast: Crude oil +5.6; Distillates -0.5; Gasoline -1.7 million barrels vs previous week.
DOE: Crude oil +8.2; Distillates ±0.0; Gasoline -2.0 million barrels vs previous week.
API: Crude oil +4.8; Distillates -0.6; Gasoline -2.6 million barrels vs previous week.

Houston (ex-wharf indications 26-3)
380cst $301
180cst $465
MGO $589

New Orleans (ex-wharf indications 26-3)
380cst $316
180cst $371
MGO $599

Singapore (delivered indications 26-3)

WTI is gaining with +3.57. Singapore paper is up with +$24.55 for 180cst with +$24.30 for 380cst for Apr, and for May 180 cst +$24.10 and 380cst with +$23.70 with MGO contracts Apr gaining with +$3.60 and in May with +$3.65. The cargo market is bearish with 180cst -$3.10, 380cst with -$1.92 and MGO bearish with -$0.60.

380cst $320
180cst $338
MGO $536

Fujairah (delivered indications 26-3)

380cst $319
180cst $344
MGO $748

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $310
MGO 0.1%S: $529