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Crude oil prices held steady to slightly weaker this morning in Asia with supplies seen ample to meet global demand.

Oil futures failed to extend Wednesday night's gains on Thursday morning. The change in the Brent's front month contract had favored the rise at oil markets Wednesday night as traders cut the short positions in the Brent September contract they had raised on Tuesday by effectuating some buying orders. They then increased their short positions in Brent contracts with later delivery. This short covering eased yesterday. Prices didn't succeed in exceeding Wednesday's highs and there were no bullish cues. The negative note of the economic indicators out of China, the EU and the USA that were released earlier this week was confirmed once again yesterday by the weaker than expected German GDP and the higher than forecast number of initial jobless claims in the USA. Apart from this, Libya's National Oil Corporation (NOC) announced that it would restart operations at the country's largest oil export terminal Es Sider in a few days. Given the overall bearish cues, selling pressure at ICE and NYMEX significantly increased in the course of the day. In the afternoon, oil futures breached first supports in no time adding to technical selling pressure as well. According to Tradition Energy analyst Gene McGillian the oil markets saw a "free fall" that pushed Brent and Gasoil to new 13- resp. 14-month lows and WTI to a 7-month low at the end of the day.

ICE Gasoil contract for September delivery settled at 866.75 USD on Thursday, this is 8.25 USD below Wednesday's settlement. With some 88,200 deals the traded volume (front month) was above average.

Despite the sharp decline at oil markets, the technical constellation currently isn't giving any fresh cues. The stochastic indicator at the WTI chart is still slightly bearish but the selling signal was already given days ago having lost influence by now. At the Brent and the Gasoil chart the indicator is neutral as its lines are already converging again. The RSI is currently not giving any signals being neutral at all charts. The technical constellation is thus still neutral this morning. Even though yesterday's sharp decline with oil futures' break below several supports created new downward potential, at the same it favors profit taking ahead of the weekend.

U.S.

Nymex below avarage: Prices at ICE and NYMEX ticked higher in Asian and electronic trading pulling back from yesterday's long-time lows as investors once again covered their short positions. The traded volume at NYMEX is above average for this time of day. Traders are now waiting for the development at stock and forex markets. They will also keep a close eye on the situation in Iraq, in the Ukraine, in Israel and Libya and on the few U.S. indicators due in the afternoon.

Houston (ex-wharf indications 15-8)
380cst $582
180cst $668
MGO $965

New Orleans (ex-wharf indications 15-8)
380cst $589
180cst $672
MGO $964

Singapore (delivered indications 15-8)

WTI is losing with -$2.42. Singapore paper is down with -$7.25 for 180cst and -$5.20 for 380cst for Aug, and for Sep 180 cst -$6.95 and 380cst with -$6.50 with MGO contracts Aug losing with -$2.37 and in Sep with -$2.40. The cargo market is gaining with 180cst +$7.50, 380cst with +$5.20 and MGO gaining with +$1.89.

380cst $585
180cst $598
MGO $870

Fujairah (delivered indications 15-8)

380cst $602
180cst $640
MGO $982