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Crude oil prices jumped in Asia this morning after data in Japan presented some hope for demand with higher industrial output and investors turned attention to an OPEC meeting next week.

Oil futures at ICE and NYMEX started consolidating on Thursday morning and stayed in a rather narrow range until the afternoon. The bearish technical constellation stayed an affecting factor at the oil market. The constellation and the easing euro encouraged a new downward movement at the oil market. Therefore, oil futures breached their Wednesday's lows. But market players acted rather cautious as they were waiting for the official US oil inventory data as per DOE which was to be released in the late afternoon. Besides, the breach of the Bollinger bands indicated a consolidation. The DOE figures showed a decrease in US crude oil and US gasoline stocks and were thus to be interpreted as bearish causing a counter movement at the oil market. Especially gasoline futures at NYMEX increased while other contracts were rather hesitant. Upward correction finally predominated at the oil market as the euro also increased in the late afternoon. Therefore, oil futures settles at fresh Thursday's highs in London and New York.

ICE Gasoil contract for June delivery settled at 570.75 USD on Thursday, this is -5.50 USD below Wednesday's settlement. With some 55,900 deals the traded volume (front month) was about on average.

The stochastic indicator at the WTI chart changed direction this morning. Its lines already crossed considerably triggering a buying signal but confirming signals at the Brent and the Gasoil chart are still missing. The RSI at the Gasoil chart surpassed its 30 line and is thus to be interpreted as bullish. The confirming signal of the RSI at the Brent chart is also still missing. The signs of the RSI and the stochastic indicator are bullish in the short term. Therefore, we consider the technical constellation as neutral to bullish this morning. But the constellation isn't stable yet and is still waiting for confirming buying signals. Meanwhile, downward trends stay intact but they are also offering place to increase.

U.S.

Nymex on average: Oil futures stay on their high level this morning after their upward movement during the night. They already surpassed their Thursday's highs. The traded volume at NYMEX is about on 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, as well as for the Baker Hughes report which is to be released tonight after FS office hours.

Forecast: Crude oil -1.1; Distillates -1.0; Gasoline -1.0 million barrels vs previous week.
DOE: Crude oil -2.8; Distillates +1.1; Gasoline -3.3 million barrels vs previous week.
API: Crude oil +1.3; Gasoline -3.6 million barrels vs previous week.

Houston (ex-wharf indications 28-5)
380cst $333
180cst $469
MGO $642

New Orleans (ex-wharf indications 28-5)
380cst $343
180cst $402
MGO $616

Singapore (delivered indications 29-5)

WTI is gaining with +$0.49. Singapore paper is losing with -$2.10 for 180cst with -$0.15 for 380cst for Jun, and for Jul 180 cst -$1.50 and 380cst with -$1.05 with MGO contracts Jun gaining with +$0.51 and in Jul with -$1.45. The cargo market is bearish with 180cst -$9.09, 380cst with -$7.98 and MGO with -$1.37.

380cst $362
180cst $381
MGO $563

Fujairah (delivered indications 29-5)

380cst $369
180cst $390
MGO $736

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $328
MGO 0.1%S: $563