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Crude oil futures edged lower during early European trading hours this morning, as investors awaited the release of U.S. data later in the trading session.

Oil futures in London and New York traded with a softer tendency on Thursday morning, testing their downward potential. They were also weighed down by a bearish technical constellation. Selling pressure even increased when the March Brent contract breached its supports near 108.40 and 108.45 dollars. The North Sea crude oil benchmark dropped down to 108.00 dollars where losses were limited. In the IEA's monthly energy report, which was released on Thursday morning, the agency warned of a decline in demand in emerging countries but also raised its global oil demand forecast for 2014. This confirmed the tendency shown by the monthly reports of OPEC and EIA. Consequently, oil futures stabilized regaining some ground in late-afternoon and evening trade. WTI renewedly rose more quickly than Brent. After the February Brent contract had expired, the spread between the two benchmark crude oil sorts (contracts for April delivery) has lately amounted to about 8.60 dollars. A new winterstorm that will bring much snow for the North-East of the USA and news from Libya (released after our submission deadline) saying that manifestations have renewedly hampered oil production, made oil futures retrace their losses in the evening. Particularly distillate prices (ICE Gasoil and NYMEX Heating Oil) rose even settling with some gains.

ICE Gasoil contract for March delivery settled at 918.50 USD on Thursday. This was -1.00 USD compared to Friday's settlement. With some 69,700 deals, the traded volume was above average.

Sales of Iranian crude oil rose by 100,000 barrels a day in January, to 1.32 million, the International Energy Agenvy reported on Thursday in its monthly survey, offering what appeared to be a glimpse at the initial impact of the temporary nuclear agreement that eased some of the Western sanctions against Iran. American supporters of strong sanctions against Iran seized on the increased oil sales as new evidence that the temporary agreement, negotiated in Geneva in November and put into effect last month, had disproportionately favored Iran. The Obama administration said at the time the agreement was reached that Iran’s oil exports would not increase, remaining around one million barrels a day.

The stochastic indicator is still bearish at ICE and NYMEX charts this morning, even though its selling signal has already been generated yesterday. The RSI is still hovering above 70% at the Brent as well as at the WTI chart. It will only confirm the bearish cues of the stochastic indicator when it sustainably drops below 70%. Accordingly, we assess the technical constellation as neutral to bearish this morning.

U.S.

Nymex cooling: Market players are taking some profits this morning after yesterday's late rise, which was lead on by distillate futures. This development is reinforced by the downward move at Asian stock markets. The traded volume at NYMEX is about on average for this time of day. Investors are now monitoring the development at stock markets waiting for new cues from forex markets. They are also looking ahead to today's economic data.

Houston (ex-wharf indications 14-2)
380cst $599
180cst $679
MGO $1005
New Orleans (ex-wharf indications 14-2)
380cst $611
180cst $650
MGO $1007

Singapore (delivered indications 14-2)

WTI is bullish with -$0.29. Singapore paper is back on its bullish track with +$1.90 for 180cst and +$0.50 for 380cst for Feb, and for Mar 180 cst +$2.25 and 380cst +$1.90 with MGO contracts being bearish Feb +$0.22 and Mar +$0.27. The cargo market is bullish with 180 cst -$1.22, 380cst -$3.01 and MGO -$0.79.

380cst $618
180cst $630
MGO $933

Fujairah (delivered indications 14-2)

380cst0 $615
180cst $647
MGO $986

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $583
(1.0 %) : $638
180cst: $613
MGO 0.1%S: $ 883