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Crude oil futures edged higher on Monday, as investors cheered an upbeat report on China’s manufacturing sector, while looking ahead to data on U.S. manufacturing activity due later in the day.

Oil prices at ICE and NYMEX had already edged lower on Friday morning. Losses still remained limited at that time of day, however. In the course of the afternoon, selling pressure significantly increased, and so oil futures breached several technical supports triggering even more technical selling orders. The disappointing economic data out of the USA (GDP Q1: -1.0%; private spending: -0.1%), the rise in Iraq's oil exports and the light easing of the tensions in Ukraine weighed on quotations. Last week, the NATO confirmed the withdrawal of Russian troops from the regions near the border to Ukraine. Investors took profits until late in the evening. Since the euro slightly steadied, there was some downward potential for domestic prices in the Eurozone, on a calculator basis. The fact that the negotiations regarding Ukraine's unpaid bills for Russian gas deliveries didn't bring any final results disappointed investors. In all, oil futures settled with considerable losses on Friday. On Sunday, the ISM's purchasing manager index for the manufacturing index in China was released. With a reading of 50.8 points, the index exceeded expectations bolstering oil prices at ICE and NYMEX earlier this morning. That is why oil futures are currently showing a light counter-reaction to Friday's losses.

ICE Gasoil contract for June delivery settled at 892.50 dollars on Friday. This was -12.75 USD below Thursday's settlement. With some 57,500 deals, the traded volume (front month) was on average.

Neither the stochastic indicator, nor the RSI are giving any fresh cues this morning. They are neutral at ICE as well as at NYMEX charts. At ICE, a short-term downtrend has formed contrasting last week's uptrend. Oil futures might soon break above this short-term downtrend again, however, if the lines of the stochastic indicator at NYMEX and ICE cross. This would generate a buying signal. Since there are no such cues for the time being, we are still assessing the technical constellation as neutral, however.

U.S.

Nymex on avarage: In a counter-reaction to Friday's downward move, oil futures at ICE and NYMEX have regained some ground this morning, supported by the Chinese purchasing manager index for the manufacturing sector released on Sunday. The traded volume at NYMEX is on average at this time of day. Market players are now eying stock and forex markets, waiting for news regarding the talks over Ukraine's gas debt. Moreover, they are looking ahead to the release of some economic indicators.

Houston (ex-wharf indications 2-6)
380cst $602
180cst $732
MGO $991

New Orleans (ex-wharf indications 2-6)
380cst $611
180cst $691
MGO $976

Singapore (delivered indications 2-6)

WTI is down with -$0.13. Singapore paper is up with +$2.25 for 180cst and +$2.40 for 380cst for Jun, and for Jul 180 cst +$1.25 and 380cst with +$1.40 with MGO contracts being bearish in Jun with -$0.94 and in Jul with -$0.85. The cargo market is bearish with 180 cst -$0.45, 380cst with -$1.26 and MGO is down with -$0.78.

The Singapore fuel oil prices printed lower by -$1.25 to -$0.5 during the Platts window. The delivered bunker premiums were around +$4.0 above cargo prices last Friday. Please take note that China, Hong Kong will be closed today for public holiday. Barges fell roughly $3.0 in the window. Delivered prices traded around $1.5 higher.

380cst $600
180cst $618
MGO $902

Fujairah (delivered indications 2-6)

380cst $610
180cst $645
MGO $981

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $585
(1.0 %) : $647
180cst: $625
MGO 0.1%S: $883