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Crude oil prices dipped further in Asia this morning as the global supply profile remains bearish, though geopolitical tensions remain a key factor.

Oil futures consolidated in a rather narrow range on Thursday morning due to the fundamental tension field which has been created from bullish and bearish factors in the course of the week. While the monthly reports of the EIA and the OPEC and the US oil inventory data which was released on Monday supported oil futures pushing them upwards, the bearish IEA monthly report, the existing oversupply and the fact that US oil production slightly increased again mitigated upward potential. The Iran fired again warning shots at a merchant ship in the Strait of Hormuz and warned about another escalation in the conflict in Yemen. Oil futures at ICE considerably increased due to these geopolitical tensions while product futures at NYMEX were pushed upwards by the increase in demand which the DOE announced on Wednesday. WTI stayed rather weak compared to the other contracts. Analysts remained sceptical regarding the high price level and underlined again that there is still no justification for last week's price increase and that oversupply thus won't decrease. Oil futures gave up most of their gains yesterday evening. The euro stayed rather strong in the course of the day reaching a fresh 3-month-high.

ICE Gasoil contract for June delivery settled at €537.92 on Thursday, this is -€0.22 below Wednesday's settlement. With some 65,500 deals the traded volume (front month) was above average.

The stochastic indicator at the WTI chart already triggered a selling signal this morning after its lines sustainably crossed. This signal might be confirmed at the Brent chart if the indicator's lines also cross at this chart. WTI and Brent dropped below their 7 day moving averages and could eye their 21 day moving averages again. Therefore, we consider the technical constellation as slightly bearish this morning while the constellation isn't stable yet. Technical selling pressure would increase again in case of confirming selling signals.

U.S.

Nymex above average: Oil futures consolidate in a rather narrow range this morning as important signals are missing. The traded volume at NYMEX is slightly 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 15-5)
380cst $353
180cst $469
MGO $659

New Orleans (ex-wharf indications 15-5)
380cst $365
180cst $415
MGO $625

Singapore (delivered indications 15-5)

WTI is losing with -$0.65. Singapore paper is losing with -$1.75 for 180cst with -$1.50 for 380cst for May, and for Jun 180 cst -$1.85 and 380cst with -$1.85 with MGO contracts may losing with -$0.05 and in bullish Jun with +$0.09. The cargo market is bearish with 180cst -$7.49, 380cst with -$8.10 and MGO with -$1.14.

380cst $375
180cst $398
MGO $596

Fujairah (delivered indications 15-5)

380cst $388
180cst $409
MGO $735

ARA (Amsterdam - Rotterdam - Antwerp) (delivered indications 13-5)

Indications for delivered bunkers:
380cst : $348
MGO 0.1%S: $593