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Crude oil futures gained in early Asia this morning, awaiting further estimates of supply and demand in the week ahead from the U.S.

Oil futures at ICE and NYMEX tested their downward margins on Friday morning due to the slightly bearish technical constellation. The selling signal of WTI's stochastic indicator already indicated profit taking on Friday morning. Fresh tensions in the Middle East which were caused by another incident in the Strait of Hormuz and the bullish US oil inventory data as per DOE prevented extensive profit taking from long positions. The resistance at € 58.54 Brent stayed strong and selling pressure increased at the oil market in the course of the day due to the weak euro. Several analysts announced again their bearish market assessments. Therefore, oil futures considerably dropped in the course of Friday afternoon. They breached several supports, among others their 7 day moving averages and their 21 day moving averages. Besides, the stochastic indicator confirmed the selling signal at the WTI chart triggering several stop loss selling orders which reinforced technical downward movement. The euro-dollar parity caused a correction movement in late trading. The US economic indicators which were released in the early afternoon on Friday were rather disappointing and when the Michigan consumer sentiment index indicated a possible decline in May, the US dollar considerably dropped. Therefore, in dollar-negotiated oil futures got less expensive for traders outside the United States. This is why fresh buying interest was caused in spite of technical selling pressure. Oil futures changed direction in the early evening and increased again together with the euro. Therefore, oil futures finally settled higher on Friday evening in London and New York.

ICE Gasoil contract for June delivery settled at € 535.07 on Friday, this is -€ 2.85 below Thursday's settlement. With some 61,400 deals the traded volume (front month) was above average.

There is no more selling signal at the Brent chart to be seen this morning. Therefore, Brent's stochastic indicator is to be interpreted as neutral again. The stochastic indicator at the WTI chart is still bearish indicating further downward tests while first selling pressure is expected to be generated by fresh selling signals. Therefore, we consider the technical constellation as neutral to bearish this morning. Market players will have to eye a possible selling signal of Brent's stochastic indicator, the 7 day moving average and the 21 day moving average as a breach of these marks could trigger stop loss selling orders.

U.S.

Nymex above average: Oil futures started consolidating in a rather narrow range this morning but increased slightly at the beginning of European trading. 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 18-5)
380cst $356
180cst $469
MGO $659

New Orleans (ex-wharf indications 18-5)
380cst $364
180cst $411
MGO $632

Singapore (delivered indications 18-5)

WTI is gaining with +$0.75. Singapore paper is gaining with +$2.00 for 180cst with +$0.55 for 380cst for Jun, and for Jul 180 cst +$2.00 and 380cst with +$0.50 with MGO contracts Jun gaining with +$0.39 and in bullish Jul with +$0.39. The cargo market is bearish with 180cst -$0.51, 380cst with -$2.04 and MGO with +$0.02.

380cst $376
180cst $400
MGO $598

Fujairah (delivered indications 18-5)

380cst $387
180cst $415
MGO $735

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

Indications for delivered bunkers:
380cst : $358
MGO 0.1%S: $598