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Crude oil futures slipped lower this morning, as concerns over U.S. demand still weighed, while worries over possible supply disruptions in the Middle East continued to subside.

Oil futures in London and New York renewedly ticked lower on Thursday morning testing their supports. Still, priced didn't sustainably extend the sharp decline of the past few days. Meanwhile, market players seem to have digested the latest news regarding the rising oil output and exports from Libya. So, investors avoided new short positions on Thursday. The OPEC's monthly energy report released yesterday afternoon had bullish as well as bearish components but in all, the cartel expects that non-OPEC supplies will rise more quickly than demand. Therefore, the report was interpreted slightly bearish. Since the Gasoil front month contract with July delivery expired in the early afternoon, investors focused on the August contract in the afternoon. This supported the Gasoil contract and, with US economic data coming in better than expected, Gasoil breached several resistances in the course of trading. That is why, the stochastic indicator at the Gasoil chart was the first indicator to provide a buying signal. The lack of bearish news from Libya and the technical buying cues favoured a sharp rise at oil markets in evening trading. Futures at ICE and NYMEX surged overall. Analysts say that this was a technical correction and that investors were covering their short positions, after last week oil markets only tended to the downside.

ICE Gasoil contract for August delivery settled at 887.50 USD on Thursday, this is +1.75 USD above day's settlement. With some 60,000 deals the traded volume (front month) was below average.

After the technical indicators at ICE and NYMEX hadn't given any signals for days, the stochastic indicator gave a buying signal at the Gasoil chart yesterday afternoon. This signal was confirmed later on Wednesday at the WTI and the Brent charts. Oil futures thus surged on Thursday evening - a rise that was favoured by the oversold situation. With this upward move, quotations have already spent some of the upward potential that had sent prices to the upper limits of their downtrends that are still intact. If futures break above these trends, technical buying should provide more upside. If oil futures bounced of their resistances, however, the bearish trends should continue. The buying cues of the stochastic indicator, has rendered the technical constellation slightly bullish, though. From a merely technical point of view, this points to a test of the resistances.

U.S.

Nymex below avarage: After last evening's sharp rise, oil futures consolidated in the early morning waiting for new cues. At the beginning of the European session, they dropped back below first supports on some profit taking. The traded volume at NYMEX is below average for this time of day. Traders will eye stock and forex markets today monitoring the developments in Iraq, Ukraine, Iran and Libya. After a relatively calm week, investors will today look ahead to the release of some economic indicators. Moreover, the IEA is going to release its monthly energy report.

Houston (ex-wharf indications 11-7)
380cst $587
180cst $655
MGO $972

New Orleans (ex-wharf indications 11-7)
380cst $595
180cst $649
MGO $977

Singapore (delivered indications 11-7)

WTI is up with +$0.79. Singapore paper is up with +$1.75 for 180cst and +$3.20 for 380cst for Jul, and for Aug 180 cst +$2.25 and 380cst with +$3.50 with MGO contracts being bullish in Jul with +$0.87 and in Aug with +$0.87. The cargo market is bullish with 180cst +$1.18, 380cst with +$0.50 and MGO with -$0.22.

The Singapore fuel oil prices managed a slight gain of app.$1.5 during the Asian Platts window yesterday. The recent weakening in crude values has attracted strong interest in buying and hedging which strengthened the fuel oil cracks considerably. The delivered bunker premiums were between $4.5 and $5.5 above cargo.

380cst $590
180cst $608
MGO $885

Fujairah (delivered indications 11-7)

380cst $604
180cst $635
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $576
(1.0 %) : $617
180cst: $616
MGO 0.1%S: $858