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Crude oil futures trimmed gains in volatile trade during U.S. morning hours on Thursday, after official data showed that the number of people who filed for unemployment assistance in the U.S. rose more-than-expected last week. On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD87.50 a barrel during U.S. morning trade, up 0.6% on the day. New York-traded oil prices fell by as much as 1.2% earlier in the session to hit a daily low of USD85.92 a barrel, the weakest level since December 13, before recovering by as much as 1.6% to touch a session high of USD88.41 a barrel.

After a short breather on Tuesday, the oil market in London and New York increasingly traded down again on Wednesday. The bearish sentiment as well as declining stocks favoured oil’s downturn. Thus, first supports were already breached in the course of morning trade. Profit-taking with the euro then increased the selling pressure in the afternoon. However, traders still were rather cautious ahead of the DoE data. As they eventually came out quite bearish, oil prices slumped and reched new long-time lows in the evening.

ICE Gasoil contract for Mai delivery settled at 825.25 USD on Wednesday. This was 10.50 USD below Tuesday's settlement. With some 60,300 deals the traded volume was above average.

Neither the Stochastic nor the RSI are giving off fresh signals this morning and are rather neutral though at the oversold level. If the Stochastic’s lines crossed and the RSI breached the 30%-line bottom-up, the oversold market situation may favour a technical upward correction. Until then, there still may be quite some downward potential. WTI should find crucial support around 84.00 USD and G.Oil between 800.00 USD and 805.74 USD. Given the lack of guiding signals, we consider the technical constellation neutral this morning.

U.S.

Nymex neutral: Oil futures are returning from their new lows reached yesterday which may be attributed to short coverings as guiding signals are lacking this morning. The traded volume at NYMEX is above average for this time of day. Market players are now closely watching the performance of European markets, new cues from forex trading and today's economic data, with particular focus on some important indicators out of the USA.

Survey of US Petroleum inventories due out tonight at 22:30 (API) and Wednesday at 16:0 (DOE)
Forecast: Crude oil + 0.8; distillates -0.4; gasoline +0.7 million barrels vs previous week
API: Crude oil - 6.7; distillates +1.3; gasoline +0.3 million barrels vs previous week
DOE:Crude oil - 1.2; distillates +2.4; gasoline -0.6 million barrels vs previous week

Houston (ex-wharf indications 17-04 )
380cst $574
180cst $664
MGO $936

New Orleans (ex-wharf indications 17-04)
380cst $575
180cst $632
MGO $937

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

Crude is bearish, dropping with -$1.50. The paper market is bearish , with April 180cst -$6.25 and for 380cst -$6.70, and May contracts with 180cst -$6.50, 380st -$7.30 The cargo market is bullish, with 180cst +$4.60, and 380cst +$3.65 and MGO -$0.46.

The Singapore fuel oil markets held on to some gains, up between +$2.5 to +$3.5 during the Platts window yesterday. Bunker demand was said to be mixed on higher outright prices. The delivered bunker premiums were between $8.0 and +$9.5 above cargo prices. This morning the markets are trading slightly higher.
v High premiums for prompt deliveries.
380 cst $585
180 cst $595
MGO $825

Fujairah (delivered indications 18-04)

380cst $592
180cst $645
MGO $940

ARA (Amsterdam - Rotterdam - Antwerp)

A lot of congestion in ARA for both ifo and gasoil. Therefor for prompt enquiries, high premiums can be inspected. Many suppliers do expect this situation for still at least a couple of days.

Indications for delivered bunkers:
380cst : $572
(1.0 %) :$ 582
180cst: $ 602
(1.0 %):$ 612
MGO 0.1%S: $ 808