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Crude oil futures gained more ground this morning, trading near nine-month highs mounting concerns over violence in Iraq continued to fuel worries of possible supply disruptions in the region.

Oil futures already steadied in Thursday morning trade testing Wednesday's highs. The resistances at these levels soon gave way. After these bars had been breached, prices rallied, with Brent marking the sharpest rise in one day since August 2013. This was due to the fact that investors were pricing in a risk premium against the backdrop of the fighting in Iraq, where the islamist group Isis advanced even further south announcing to attack Baghdad as well. If the oil exports of Iraq (approximately 2.5 to 2.6 bpd) should be discontinued, the other oil producers wouldn't be able to offset the losses. Consequently, oil markets sharply reacted to the developments in Iraq yesterday, the more so as there hasn't been any counter attack by the troops of the Iraqi government and (possibly) the USA, yet. In the course of the afternoon, oil futures took a short breather. However, buying pressure renewedly increased in the evening pushing Brent to a 9-month-high. Other factors, like the disappointing weekly US jobs data or the OPEC's slightly bearish monthly energy report, hardly played a role yesterday having no greater impact on price levels at ICE und NYMEX.

ICE Gasoil contract for July delivery settled at 911.50 USD on Thursday, this is +17.25 USD vs Wednesday's settlement. With some 134,300 deals, the traded volume (front month) was below average.

The RSI and the stochastic indicator aren't giving any new cues this morning as both indicators are neutral at ICE and NYMEX and the lines of the stochastic indicator at the Brent and the WTI charts are converging. Since market fundamentals are currently dominating oil markets, the technical constellation has lost some of its influence, anyway. The indicators are in overbought territory favoring profit taking after yesterday's sharp rise but, still, prices are under the influence of events in Iraq. Since the technical constellation is not giving any fresh cues this morning, we continue regarding it as neutral.

U.S.

Nymex above average: Oil futures are currently not showing any clear direction. Overnight, they were able to extend their gains but the lost some ground again afterwards. The traded volume at NYMEX is far above average at this time of day reflecting investors' nervosity. Market players are now eying the opening of stock and forex markets and the development of the situation in Iraq. Moreover, they are waiting for today's economic indicators, and the IEA's monthly energy report.

Houston (ex-wharf indications 13-6)
380cst $605
180cst $713
MGO $979

New Orleans (ex-wharf indications 13-6)
380cst $609
180cst $691
MGO $987

Singapore (delivered indications 13-6)

WTI is up with +$1.88. Singapore paper is up with +$9.50 for 180cst and +$10.35 for 380cst for Jun, and for Jul 180 cst +$8.75 and 380cst with +$9.40 with MGO contracts being bullish in Jun with +$2.90 and in Jul with +$2.90. The cargo market is bearish with 180cst +$3.96, 380cst with +$5.37 and MGO with +$1.71.

The Singapore fuel oil prices rose between $5.5-4.0 during the Asian Platts window yesterday tracking firm crude values. The latest Singapore heavy residual inventory reported a slight build of 0.62 million mt to 21.68 million mt. The delivered bunker premiums softened to app.$3.5 above cargo prices yesterday.

380cst $607
180cst $625
MGO $909

Fujairah (delivered indications 13-6)

380cst $615
180cst $645
MGO $987

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $598
(1.0 %) : $645
180cst: $638
MGO 0.1%S: $891