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Crude oil prices rose in Asia, continuing overnight gains after Gold prices continued gains in Asia on Friday after President Barack Obama said the U.S. would assist in determining the cause of the crash of a Malaysia Airlines plane near the Russia-Ukraine border.

As expected, bullish data on US oil stocks, technical buying signals and fresh US sanctions against Russia have bolstered oil prices in London and New York. When Brent and WTI breached their key-resistances at 107.50 USD, resp. 101.60 or 106.65 USD, more upward potential was generated. Eventually, the RSI also exceeded 30% at the Brent and the Gasoil chart confirming the buying signal it had given at the WTI chart on Thursday morning. Therefore, the technical constellation turned completely bullish triggering technical buying orders. Reports from Kurdistan said that exports would be increased after the oil fields in the region of Kirkuk had been connected to the pipeline system pumping crude oil from Kurdistan to Ceyhan (Turkey). Since this should renewedly improve crude oil supplies and thus, market fundamentals wouldn't justify another increase in prices, oil futures at ICE pulled back from their highs in the afternoon. In late trade, futures in London rebounded, however. The crash of a passenger airplane in the Ukraine is to have been caused by pro-Russian separatists boosting the risk of another escalation of the tensions between Russia and the West. That is why traders raised the geopolitical risk premium in late trade. Moreover, news out of Libya said that the country's oil output is to sharply decline. Market players thus increased their long positions in late trade and so oil futures finished their roller-coaster ride marking new highs and breaking above the downtrends that had been intact since the end of June.

ICE Gasoil contract for August delivery settled at 881.50 USD on Thursday, this is ±0.00 USD compared to Wednesday's settlement. With some 70,300 deals the traded volume (front month) was above average.

The lines of the stochastic indicator at the ICE and NYMEX charts are drifting further apart. Meanhwile, they have surpassed 50% indicating more bullish potential even though the buying signals had already been triggered days ago. Yesterday afternoon, the RSI gave a buying signal at ICE and NYMEX charts, breaking above 30%. This indicator is still bullish today, as well. Moreover WTI, Gasoil and Brent broke above their steep downtrends that had formed in June already. Even though yesterday evening's sharp rise in oil futures might prompt investors to take some profits from their speculative long positions, the current technical constellation can be interpreted as bullish.

U.S.

Nymex above avarage: Oil futures defended yesterday's gains in the early morning. Before the volume traded today is going to rise, investors are currently taking some profits, however. The traded volume at NYMEX is far above average for this time of day. Investors will monitor stock and forex markets today keeping a close eye on the developments in Iraq, Ukraine, Israel and Libya. They are also looking ahead to today's economic indicators.

Houston (ex-wharf indications 18-7)
380cst $586
180cst $664
MGO $971

New Orleans (ex-wharf indications 18-7)
380cst $592
180cst $664
MGO $959

Singapore (delivered indications 18-7)

WTI is up with +$1.34. Singapore paper is up with +$4.50 for 180cst and +$4.00 for 380cst for Aug, and for Sep 180 cst +$3.85 and 380cst with +$4.00 with MGO contracts being bearish in Aug with +$0.35 and in Sep with +$0.36. The cargo market is bullish with 180cst +$1.05, 380cst with +$1.34 and MGO with +$0.14.

The Singapore fuel oil prices rose app. $1.0 during the Asian Platts window yesterday. The latest Singapore heavy residual inventory reported a build of +1.84 mbbl to 22.73 mbbl. The delivered bunker premiums were around +$6.25 above cargo prices.

380cst $595
180cst $612
MGO $890

Fujairah (delivered indications 18-7)

380cst $607
180cst $638
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $574
(1.0 %) : $601
180cst: $618
MGO 0.1%S: $858