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Crude oil prices dropped in early Asia this morning with investors noting massive oversupply threats as well as efforts to curb production, making for a mixed outlook.

After Wednesday evening's price rally, oil futures at ICE and NYMEX traded on a high level on Thursday morning. Since they failed to break above Wednesday's highs, futures lost ground until the early afternoon, however, with market players taking profits from their long-positions. The technical constellation as well as market fundamentals remained slightly bullish on the short-run. OPEC's monthly energy report didn't bring any surprises as EIA and IEA had already reported a rise in OPEC output forecasting a decline in US crude oil production. WTI breached its support at € 51.49 but failed to break below € 50.71 later in the afternoon. There were no fresh selling cues from the technical perspective either and so losses were limited. Weaker than expected economic data out of the USA weighed on oil prices but without any fresh bearish cues from market fundamentals or the technical constellation oil futures pulled back from their lows in the evening. WTI rose back above its former support at € 51.49 whilst Brent and Gasoil surpassed Wednesday's highs. They were buoyed by a report released by the API, saying that US demand is likely to strengthen. After oil futures had breached their resistances, technical buying orders that were triggered automatically accelerated the rise. As a result, Gasoil surged to a new one-month-high and Brent climbed to the highest level since the beginning of December 2014. The technical price increase didn't prove sustainable, however, which is why oil futures saw a downward correction in the early morning.

ICE Gasoil contract for May delivery settled at € 527.57 on Thursday, this is +€ 10.6 above Wednesday's settlement. With some 54,000 deals the traded volume (front month) was above average.

The technical indicators at ICE and NYMEX charts can be interpreted as neutral at the moment but they might give strong selling signals in the course of the day. The stochastic indicator, as well as the RSI suggests that the market is overbought prompting market players to take some profits from their long-positions. If the RSI sustainably breaks below 70% and the lines of the stochastic indicator cross, the bearish potential might show its effects. If such signals are triggered in the course of the day, the technical constellation - which is neutral for the time being - would turn bearish, paving the way for a downward correction. But not only had the technical indicators led to expect that the oil futures are overbought. Last week, investors sharply raised their net-long-positions. This week, they continued to increase their net-long-positions as oil futures kept track of their rise.

U.S.

Nymex above avarage: Oil futures in London and New York are rather volatile this morning. After having pulled back from Thursday's highs, they are currently struggling to find a direction. However, there haven't been any crucial cues so far. The traded volume at NYMEX is far above average at this time of the day. Investors are waiting for the European financial and forex markets to open, for news concerning Yemen, Baker Hughes' report on active US oil rigs and for the economic indicators that are on the agenda today.

Houston (ex-wharf indications 17-4)
380cst $323
180cst $479
MGO $611

New Orleans (ex-wharf indications 17-4)
380cst $329
180cst $387
MGO $621

Singapore (delivered indications 17-4)

WTI is gaining with +$0.71. Singapore paper is bullish with +$2.00 for 180cst with +$2.00 for 380cst for May, and for Jun 180 cst +$1.85 and 380cst with +$1.10 with MGO contracts may gaining with +$0.80 and in Jun with +$0.77. The cargo market is bullish with 180cst +$9.33, 380cst with +$10.09 and MGO with +$2.07.

380cst $344
180cst $365
MGO $560

Fujairah (delivered indications 17-4)

380cst $351
180cst $365
MGO $734

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $328
MGO 0.1%S: $560