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Crude oil prices slipped further from overnight this morning in early Asia as investors watch the supply/demand balance plays out that pits bulging inventories against efforts to curb production.

Oil futures at ICE and NYMEX started lower on Thursday morning testing their downside due to disappointing Chinese economic indicators and a bearish technical constellation. The supports at € 58.01 Brent and € 51.99 WTI limited losses. Oil futures changed direction and eyed their resistances at the beginning of US trading. Technical buying orders were automatically triggered by the breach of their resistances. Therefore, oil futures participated in a rallye in the afternoon. Especially the conflict in Yemen was a supporting factor as the international coalition led by Saudi Arabia intensified its air attacks on Houthi rebels. Genscape announced decreases in crude oil stocks in Cushing, Oklahoma in the late evening. Afterwards, the stochastic indicator triggered first buying signals. Therefore, oil futures stayed strong and settled considerably higher after having reached fresh annual highs.

ICE Gasoil contract for May delivery settled at € 546.26 on Thursday, this is +€ 13.76 above Wednesday's settlement. With some 37,800 deals the traded volume (front month) was below average.

The stochastic indicator at the Brent and the Gasoil chart changed direction and generated buying signals on Thursday evening. The lines of WTI's stochastic indicator didn't cross sustainably yet. Therefore the confirming signal at the WTI chart is still missing. We consider the technical constellation as slightly bullish this morning due to the buying signals at ICE but the constellation isn't very stable. If the stochastic indicator at the WTI chart confirms the bullish signals, oil futures might eye again their yesterday's highs whereas the RSI could trigger selling signals as well. These signals might encourage a technical downward correction and profit taking from long positions. This situation could lead to a change in technical direction again.

U.S.

Nymex on avarage: After the jump in prices on Thursday, oil futures slightly eased in Asian trading this morning but keep consolidating in a rather narrow range in electronic Globex trading. The traded volume at NYMEX is about on average at this time of the day. Investors are waiting for the European financial and forex markets to open, for news concerning Yemen and for the economic indicators that are on the agenda today, as well as for the Baker Hughes report which is to be released this evening after FS office hours.

Houston (ex-wharf indications 24-4)
380cst $331
180cst $457
MGO $630

New Orleans (ex-wharf indications 24-4)
380cst $342
180cst $392
MGO $638

Singapore (delivered indications 24-4)

WTI is gaining with +$0.87. Singapore paper is bullish with +$4.25 for 180cst with +$4.25 for 380cst for May, and for Jun 180 cst +$4.00 and 380cst with +$4.15 with MGO contracts may losing with +$0.80 and in Jun with +$0.81. The cargo market is bearish with 180cst -$5.78, 380cst with -$5.05 and MGO with -$1.13.

380cst $351
180cst $368
MGO $570

Fujairah (delivered indications 24-4)

380cst $354
180cst $369
MGO $729

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $343
MGO 0.1%S: $583