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U.S. oil futures rose for the first time in four sessions this morning, as investors returned to market to seek bargains after prices fell to the lowest level in more than three months.

Market fundamentals were slightly bearish at oil markets on Friday morning. The announced restart of the Buzzard oil field, news on a rise in crude oil stockpiles in Cushing, Oklahoma, and the resumption of oil exports from Iran, dragged oil futures lower. As to the technical constellation, the still slightly bearish stochastic indicator favoured tests to the downside. Even so, the decline at oil markets only accelerated in the afternoon, when futures in London and New York broke below key-supports. Whilst Gasoil dropped below 515.00 USD and Brent breached 56.75 USD, WTI fell through 50.80 USD. At first, this lead to more technical selling and a rather unsurprising decline but later in the afternoon, market players covered their short-positions. Ahead of the weekend, investors tended to avoid larger risks, taking advantage of the price slump in order to lock in gains from their short-positions. However, the upward correction was rather short-lived. Selling pressure waned, however, at 50.10 USD WTI and so, oil futures were able to regain some ground in the course of the evening. Traders were still eying the Baker Hughes rig count. This report showed that the number of active US oil rigs retreated by seven installations. This prevented another decline last night. Save NYMEX gasoline, which traded more steadily on Friday evening, oil futures still settled with losses.

ICE Gasoil contract for August delivery settled at 511.75 USD on Friday, this is 8.00 USD below Thursday's settlement. With some 55,700 deals the traded volume (front month) was on average.

From a technical point of view, WTI broke below its sideways consolidation, generating more downward potential. At the Brent and the Gasoil chart fresh downtrends can be expected in the short-term. However, there are no fresh bearish cues this morning as the stochastic indicator has lost its bearish bias. At the WTI chart a Doji has developed. If this signal for a change is confirmed by a green candlestick (higher settlement) today which might also lead to a bullish engulfing, it would lead to an upward correction. If this is not the case, however, traders might try to push oil futures down to 50 USD. On Friday, they failed to do so. That is why it is still open, which bias the technical constellation will have. We thus assess the technical constellation as neutral.

U.S.

Nymex above average: Oil futures are currently losing some ground but they are still trading above Friday's lows. The traded volume at NYMEX is above average at this time of the day as investors are already getting prepared for the change in the WTI front month tomorrow. Market participants are waiting for the European financial and forex markets to open and for the release of a few economic indicators, (see economic calendar).

Houston (ex-wharf indications 20-7)
380cst $306
180cst $471
MGO $542

New Orleans (ex-wharf indications 20-7)
380cst $314
180cst $386
MGO $522

Singapore (delivered indications 20-7)

WTI is bearish with -$0.06. Singapore paper is down with -$1.25 for 180cst up with -$1.10 for 380cst for Aug, and for Sep 180 cst -$1.50 and 380cst with -$1.50 with MGO contracts Aug losing with -$0.50 and in Sep with -$0.62. The cargo market is bearish with 180cst -$4.85, 380cst with -$5.46 and MGO with -$1.84.

380cst $306
180cst $319
MGO $488

Fujairah (delivered indications 20-7)

380cst $315
180cst $338
MGO $725

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $291
MGO 0.1%S: $473