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Crude oil prices gained in early Asia this morning, recovering from an overnight dip as investors keep an increasingly close eye on monetary policies in the U.S. and China, for demand cues.

Further downward tests were to be seen at the technical constellation on Thursday morning. But the influence of short covering predominated the oil market in the morning after Wednesday's downward movement. The weak dollar prompted traders to take profit from Wednesday's downward movement at oil markets. Therefore, oil futures increased before bearish factors predominated the market around midday. The news concerning US shale oil producers, who announced to increase their production activity, and Iran, which announced that Iranian oil production, will considerably increase after the lift of sanctions weighed on oil futures. Especially technical selling pressure was triggered when the RSI breached its 70% line. Therefore, the RSI confirmed the stochastic indicator's selling signals confirming the bearish technical constellation. Additional stop-loss selling orders were triggered by the breach of the € 53.5 mark at the WTI chart and of the 7 day moving average at ICE and NYMEX. Oil futures considerably decreased and finally settled near their Thursday's lows in London and New York.

ICE Gasoil contract for May delivery settled at € 540.35 on Thursday, this is -€ 13.37 below Wednesday's settlement. With some 40,500 deals the traded volume (front month) was slightly below average.

The RSI confirmed the selling signals of the stochastic indicator on Thursday by dropping below the 70%-line. Besides, WTI breached its important support at € 53.5 and the 7 day moving average. Even Brent and Gasoil broke below several important supports as well as their 7 day moving averages. Therefore, oil contracts faced further downside. We consider the technical constellation as bearish this morning even though selling signals have been triggered yesterday. Besides, contracts are expected to test further supports in the course of the day.

U.S.

Nymex above avarage: Oil futures at ICE and NYMEX are weak this morning and already breached their Thursday's lows. The traded volume at NYMEX is above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and for economic indicators that are on the agenda today.

Houston (ex-wharf indications 8-5)
380cst $355
180cst $466
MGO $665

New Orleans (ex-wharf indications 8-5)
380cst $367
180cst $419
MGO $644

Singapore (delivered indications 8-5)

WTI is losing with -$2.35. Singapore paper is bearish with -$7.50 for 180cst with -$9.00 for 380cst for May, and for Jun 180 cst -$8.45 and 380cst with -$9.95 with MGO contracts may losing with -$2.30 and in Jun with -$2.42. The cargo market is bearish with 180cst -$3.31, 380cst with -$3.02 and MGO bullish with +$0.01.

380cst $381
180cst $396
MGO $586

Fujairah (delivered indications 8-5)

380cst $398
180cst $412
MGO $735

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $353
MGO 0.1%S: $583