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Crude oil prices bumped higher in Asia on this morning as the dust settles from a deal with Iran over its nuclear program that could lead to a spike in crude hitting the global market in the coming year.

Oil futures at ICE and NYMEX tended to the downside on Thursday morning, approaching Wednesday's lows. However, they failed to break below these lows. This limited the downside, the more so as the technical constellation provided mixed cues. In the course of the day, ICE Brent remained steadier than WTI and Gasoil. The European crude oil sort was fostered by a buying signal of the RSI and by a power outage at the Buzzard oil field in the North Sea. In the evening, the Brent contract with August delivery expired, favouring short-covering. The other futures continued testing their supports, though. In the evening, they thus hit new lows. Overnight, prices didn't post any larger losses but news on Iran having sent the first large oil tanker to Singapore weighed on oil futures. Moreover, data provider Genscape said it expected crude oil inventories in Cushing, Oklahoma, to have increased. Oil futures thus failed to pull back from Thursday's lows, consolidating but slightly above these levels.

ICE Gasoil contract for August delivery settled at 519.75 USD on Thursday, this is 3.75 USD below Wednesday's settlement. With some 67,200 deals the traded volume (front month) was above average.

The stochastic indicator already gave its selling signals days ago. That is why the indicator has lost some of its impact on oil markets although it remains bearish. The RSI has generated buying signals at ICE and at NYMEX charts but this is also showing a mismatch as oil futures' highs were on an ever lower level in the past three days. That is why we don't consider the buying signals of the RSI in our technical assessment today. This mismatch is also a warning sign which might indicate that oil prices will break out of their sideways consolidation in the coming day. From a technical point of view, the supports at 50.80 USD and 50.55 USD (WTI) should have the most important influence. If WTI drops below these marks, there might be a technical sell-off. If the supports remain strong, oil futures might see a correction up to the MA7 or even to the upper end of the sideways consolidation. We are assessing the technical constellation as slightly bearish this morning as the stochastic indicator still has a bearish bias, favouring tests of the supports.

U.S.

Nymex above average: Oil futures have already tested Thursday's lows in the early morning. However, they have failed to break below these levels up to now. This is prompting investors to cover their short-positions. The traded volume at NYMEX is above average at this time of the day. Market participants are waiting for the European financial and forex markets to open and for the release of a few economic indicators. Moreover, they are looking ahead to the release of the Baker Hughes report on US oil rigs.

Houston (ex-wharf indications 17-7)
380cst $305
180cst $482
MGO $554

New Orleans (ex-wharf indications 17-7)
380cst $314
180cst $380
MGO $532

Singapore (delivered indications 16-7)

380cst $313
180cst $325
MGO $503

Fujairah (delivered indications 16-7)

380cst $313
180cst $334
MGO $733

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $293
MGO 0.1%S: $483