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Crude oil eased higher in Asia this morning in a rebound from sharp drops overnight as ample global supplies weigh on the market.

Oil futures at ICE and NYMEX continued their bearish trend due to its technical and fundamental guidelines which were neutral to bearish on Thursday morning. New downside was created by the breach of Wednesday's intraday lows. The EIA's monthly report in which price forecasts for this and the next year were sharply revised down, weighed on the oil futures at ICE and NYMEX. Several support areas were breached in the course of the day and quotations kept dropping. The Chinese and US economic data which were also released yesterday were disappointing and weren't able to counter the price decline. The DOE's data were bullish in general but contained also bearish aspects at second glance. Therefore, the futures stayed weak and generated fresh selling signals by breaching the 700.00 USD mark Gasoil so that Brent, WTI and Gasoil settled lower at fresh 4-year-lows.

ICE Gasoil contract for November delivery settled at 705.00 USD on Thursday, this is 23.25 USD below Wednesday's settlement. With some 115,300 deals the traded volume (front month) was far above average.

The stochastic indicator stays slightly bearish this morningafter its selling signals at the beginning of the week. Only at the Gasoil chart indicator's lines already converge slightly and indicate a decreasing influence of this indicator. The RSI makes no effort to breach the 30 line and therefore no counter-signal is triggered for the downward movement. The stochastic indicator's initial selling signals should be absorbed as far as possible due to this week's price decline. But due to Brent's and WTI's drop below their important support zones at 80.00 USD and 700.00 USD further downside was triggered. Since there are no bullish signals this morning, we consider the technical constellation as neutral to bearish.

U.S.

Nymex below avarage: Futures at ICE and NYMEX tested their yesterday's intraday and longterm lows in early trading still extending last night's losses. The traded volume at NYMEX is far above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots. Today, there are no important economic indicators on the agenda.

Forecast: Crude oil -0.5; Distillates -1.6; Gasoline -0.3 million barrels vs previous week.
DOE: Crude oil -1.7; Distillates -2.7; Gasoline +1.8 million barrels vs previous week.
API: Crude oil +1.1; Distillates -1.5; Gasoline +0.4 million barrels vs previous week.

Houston (ex-wharf indications 14-11)
380cst $439
180cst $534
MGO $827

New Orleans (ex-wharf indications 14-11)
380cst $451
180cst $513
MGO $824

Singapore (delivered indications 14-11)

WTI is losing with -$3.18 Singapore paper is down with -$22.50 for 180cst with -$21.90 for 380cst for Nov, and for Dec 180 cst -$22.00 and 380cst with -$21.05 with MGO contracts Nov bearish with -$3.45 and in Dec with -$3.35. The cargo market is losing with 180cst -$3.46, 380cst gaining with -$3.91 and MGO with -$1.48.

380cst $485
180cst $502
MGO $725

Fujairah (delivered indications 14-11)

380cst $472
180cst $505
MGO $921

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $428
(1.0 %) : $438
MGO 0.1%S: $699