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Bullish news from China helped push crude oil closer to $107 per barrel in New York Thursday morning. West Texas Intermediate crude for September delivery added $1.74 to $106.77 per barrel with support from China's purchasing managers' index, which indicated manufacturing growth, coming in at 50.3 for July.

Oil prices at ICE and NYMEX had largely been trading in a narrow range on Wednesday morning. Towards noon, Brent and G.Oil slipped due to the slightly bearish technical constellation, breaching their first support. WTI held relatively steady near its first resistance since the API had reported a considerable draw in crude stockpiles in Cushing, Oklahoma. As U.S. economic data had come in rather mixed in the afternoon, traders rather waited for the DOE’s inventory data and the Fed statement in the evening. As for the DoE, its weekly report did not show a distinct tendency. Thus, oil prices had trouble to find direction. But as traders especially made the bullish drop in Cushing and higher gasoline demand subject discussion at the oil market , prices eventually started to rise in late trade. As far as the FOMC meeting is concerned, no changes to its easy-money police were announced. The Fed statement, however, was considered slightly bullish as it showed that the FOMC 11-1 of maintaining its expansive measures. Oil markets continued with a strong upward tendency until the late evening. Consequently, oil futures settled at fresh day’s highs. ICE Gasoil contract for August delivery settled at 910.50 USD on Wednesday. This was 2.50 USD above Tuesday's settlement. With some 40,900 deals, the traded volume was below average.

At ICE as well as at NYMEX, oil prices have escaped their short-term downtrend. Moreover, the Stochastic indicator has also given off a buying signal as its both lines crossed. So the technical constellation is clearly bullish and speaks for further upward tests.

U.S.

Nymex bullish: After surging in late trade yesterday, oil futures have been consolidating at a high level this morning. The good performance of Asian stock markets and positive data out of China slightly are slightly propping up the oil market. The traded volume at NYMEX is above average for this time of day. Market players are now waiting for the opening of European markets, for new signals from forex trading and for the economic indicators on the agenda today.

Survey: crude oil -2.2; distillates +0.5; gasoline -1.1 vs million barrels previous week.
API: Crude oil -0.7; distillates -0.5; gasoline -1.8 vs million barrels previous week.
DOE: crude oil +0.4; distillates -0.5; gasoline +0.8 vs million barrels previous week.

Houston (ex-wharf indications 31-07 )
380cst $590
180cst $672
MGO $1008

New Orleans (ex-wharf indications 31-07)
380cst $592
180cst $638
MGO $1010

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

380cst $597
180cst $600
MGO $905

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $610
(1.0 %) :$620
180cst: $630
(1.0 %):$ 650
MGO 0.1%S: $ 900