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Crude oil futures were steady during early European trading hours this morning, hovering close to six-week lows as markets were jittery ahead of the release of U.S. nonfarm payrolls data later in the day.

Oil prices dropped at ICE and NYMEX on Thursday on a considerable rise in US crude stockpiles and on a disappointing U.S. first quarter GDP (+0,1% in 2014). The IMF's expectation of a recession in Russia also weighed on prices and tempted traders to take some profit. The traded volume was very thin, the first of May being a national holiday in Europe. Oil prices kept falling after the opening of NYMEX session as market participants appreciated the abundant global crude supply. Still, worries over the development of the Ukraine crises kept losses at bay and helped oil prices up in late trading. Even though the futures in London and New York regained some ground lost they settled lower in the end.

ICE Gasoil contract for May delivery settled at 899.75 dollars on Thursday. This was 3.50 USD below Wednesday's settlement. With some 25,500 deals, the traded volume was well below average.

After their hefty losses over the past days oil prices are now in a short-term downtrend. Neither the Stochastic nor the RSI are giving any clear signals this morning but both indicators are at the oversold level at the NYMEX (the Stochastic also at the ICE) paving the way for an upward correction. But a buying signal is only triggered if the two lines of the Stochastic indicator cross or if the RSI at the WTI chart breaches the 30 line. As long as the indicators are not giving any fresh signals the technical constellation is considered as neutral.

U.S.

Nymex below average: After trading in a narrow range in Asia this morning, oil prices rose at the beginning of the European session, breaching several resistances lines in a technical reaction to Thursday's losses and on renewed tensions in the Ukraine. The traded volume at NYMEX is well below average at this time of day. Traders are monitoring stock and forex markets, the developments in Ukraine as well as today's economic indicators.

API: Crude oil +3.0; Distillates +0.7; Gasoline -1.0 million barrels vs previous week.
DOE: Crude oil +1.7; Distillates +1.9; Gasoline +1.6 million barrels vs previous week.
Forecasts: Crude oil +1.1; Distillates +0.5; Gasoline ±0.0 million barrels vs previous week.
v Houston (ex-wharf indications 2-5)
380cst $601
180cst $678
MGO $982

New Orleans (ex-wharf indications 2-5)
380cst $612
180cst $660
MGO $981

Singapore (delivered indications 2-5)

WTI down slightly with -$0.40. Singapore paper also down with -$3.75 for 180cst and -$3.00 for 380cst for May, and for Jun 180 cst -$4.15 and 380cst -$3.30 with MGO contracts slightly bullish May -$0.30 and Jun -$0.29. The cargo market is bearish with 180 cst -$0.72, 380cst -$0.15 and MGO -$0.10.

In Singapore the discount on benchmark 380-centistoke fuel oil was assessed wider at $4/mt on Wednesday versus minus $2.95/mt from the previous session, reflecting high stocks. The Singapore onshore fuel oil stocks jumped 10% to reach a near 7-1/2 month high of 22.381mbbl in the week to April 30, official data showed.

380cst $592
180cst $608
MGO $935

Fujairah (delivered indications 2-5)

380cst $602
180cst $638
MGO $984

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $575
(1.0 %) : $630
180cst: $515
MGO 0.1%S: $880